# Taxes



## LongboardSurfer (Aug 3, 2014)

Hello to all,
We are from the US and in the process of applying for Retiree Visas. Once successful, what, if any, Spanish taxes might we be required to pay?

Any and all responses are welcome!

Thanks,
LBSurfer


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## larryzx (Jul 2, 2014)

I cannot answer your question, but I suggest you search on the internet for information regards Double Taxation Agreement(s) between Spain and USA.

DTA between countries vary, so what I know about those between Spain and UK would be of no use for you.

Good luck.


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## Libbyzx (Aug 7, 2014)

When it comes to having to pay out for taxes take NO notice of anyone's advice on forums because when given incorrect information you're the one who ends up in trouble and having to pay.
As you are fully aware with the US tax system, get it wrong, well you know the answer to that one.


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## snikpoh (Nov 19, 2007)

Libbyzx said:


> When it comes to having to pay out for taxes take NO notice of anyone's advice on forums because when given incorrect information you're the one who ends up in trouble and having to pay.
> As you are fully aware with the US tax system, get it wrong, well you know the answer to that one.


I guess I *have* to disagree with this comment.

Forums, and this one in particular, are a very good source of information and even links to other 'official' sites dealing specifically with your concerns.

I absolutely agree that you can not beat professional advice but forums, IMHO, are a good place to start to try and understand the basics from people in a similar situation as yourself.


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## xabiaxica (Jun 23, 2009)

LongboardSurfer said:


> Hello to all,
> We are from the US and in the process of applying for Retiree Visas. Once successful, what, if any, Spanish taxes might we be required to pay?
> 
> Any and all responses are welcome!
> ...


:welcome:

you would be liable to pay tax on your worldwide income, although if there is a double tax agreement between Spain & the US one would be 'written off' against the other


you would also have to make an annual declaration of your worldwide assets of over 50,000€


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## larryzx (Jul 2, 2014)

xabiachica said:


> you would also have to make an annual declaration of your worldwide assets of over 50,000€


Or like the estimated just over 95%, ignore that law.

Good luck, from one of the (stupid) under 5% !


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## Libbyzx (Aug 7, 2014)

snikpoh said:


> I guess I *have* to disagree with this comment.
> 
> Forums, and this one in particular, are a very good source of information and even links to other 'official' sites dealing specifically with your concerns.
> 
> I absolutely agree that you can not beat professional advice but forums, IMHO, are a good place to start to try and understand the basics from people in a similar situation as yourself.



Yeah sure, perhaps a forum is a good place to ask for information, maybe "Anyone know of a good furniture store?" but for tax problems you may as well ask the guy in the bar, I heard you brits call them barrack room lawyers.

No basics will do on paying the correct amount of tax, and I am not in any similar problem either.


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## xabiaxica (Jun 23, 2009)

Libbyzx said:


> Yeah sure, perhaps a forum is a good place to ask for information, maybe "Anyone know of a good furniture store?" but for tax problems you may as well ask the guy in the bar, I heard you brits call them barrack room lawyers.
> 
> No basics will do on paying the correct amount of tax, and I am not in any similar problem either.




we don't claim to be experts - although between us we do know a lot about a lot of things , including tax, healthcare, legal stuff - but we will generally suggest an official source for anything tricky - & our FAQs thread has an amazing wealth of great info & links, which has been built up over quite some years & is added to all the time


a lot of people come here not knowing where to find info - we'll point them in the right direction


we're not so good at the 'good furniture store' stuff - unless we happen to have a member in that particular town


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## LongboardSurfer (Aug 3, 2014)

Thanks to everyone. All good advice. I will research the "double-taxation" thread through whatever "official link" I can find and post what I discover.

Ciao,
LBSurfer


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## larryzx (Jul 2, 2014)

LB Here is some light bedtime reading !!!

http://www.irs.gov/pub/irs-trty/spain.pdf


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## LongboardSurfer (Aug 3, 2014)

To All,
According to Article 20 of:
THE CONVENTION BETWEEN THE UNITED STATES OF AMERICA
AND THE KINGDOM OF SPAIN FOR THE AVOIDANCE OF
DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME, TOGETHER WITH A RELATED PROTOCOL,
SIGNED AT MADRID ON FEBRUARY 22, 1990

ARTICLE 20
Pensions, Annuities, Alimony, and Child Support
1. Subject to the provisions of Article 21 (Government Service):
(a) pensions and other similar remuneration derived and beneficially owned by a
resident of a Contracting State (the US in this case) in consideration of past employment shall be taxable only in that State; and
(b) social security benefits paid by a Contracting State (the US in this case) a resident of the other Contracting State or a citizen of the United States may be taxed in the first-mentioned State.

So, it appears that my retirement pay and Social Security won't be double taxed. Would there be any hidden taxes I should be aware of (city taxes, etc.) for residing in Spain?

Just trying to plan a budget. 
Thanks,
LBSurfer


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## larryzx (Jul 2, 2014)

LongboardSurfer said:


> So, it appears that my retirement pay and Social Security won't be double taxed. Would there be any hidden taxes I should be aware of (city taxes, etc.) for residing in Spain?
> LBSurfer


What you need to be clear on is where you are required by the Agreement(s) to pay your taxes on specific items of income / assets.

Apart from property taxes and possible Patrimonio Tax if your wealth is above a certain limit (depends whether you are tax resident or not) but again that will depend on the agreement(s) which apply to you. I only know about UK and Spain which is of no use to you.


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## 213979 (Apr 11, 2013)

I feel like this is a good time to ask the other Americans on the board if they know of a good financial planner who knows both Spain and the US. I'm still waiting on my Spanish tax return and I have a terrible feeling my gestor flubbed something up...


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