# Tax question for Americans living in Spain



## travelcupid09 (Sep 22, 2010)

The plan is to move and live in Spain for a bout one year.
Do we have to pay taxes for our US income in Spain also? What %? Our income will be about $150k per year. Our property depreciation off sets our taxes every year which puts us in the lowest tax bracket here but what about in Spain. We have assets that are worth about 2 millions does that affect how much taxes we pay in Spain (if we have to pay taxes) All assets are in the USA we don't plan to buy in Spain


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## Bevdeforges (Nov 16, 2007)

Spain requires you to file taxes based on your worldwide income if you are considered "tax resident" in Spain - which means that you are physically present in Spain for 183 days or more during the tax year, or you have your center of economic or vital interests in Spain.

As US citizens (or permanent residents) you must also file US returns no matter where in the world you live, declaring your worldwide income.

Practically speaking, you pay income tax on your salary to the country in which you are living, and you usually wind up paying income tax on property income (rent, sales, etc.) to the country in which the property is located. This is all governed by tax treaties, and the mechanics for how you report "foreign income" and claim any treaty benefits or credits varies by country and source of the income.
Cheers,
Bev


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