Spain is a beautiful country with a great climate, delicious cuisine, and a rich culture and history – in short, an incredible choice for Americans looking to live in Europe. If you’re an American thinking about moving to Spain, there are numerous things to consider though. In this article, we’ll provide an overview of the major considerations for Americans considering a move to Spain.
Taxes
One of the most important financial considerations for Americans moving to Spain is taxes. As a US citizen, after you move abroad you will still be subject to US taxes on your worldwide income, as well as subject to Spanish taxes, depending on your residency status. There are ways to avoid double taxation, but it’s essential to understand the tax laws in both countries and to work with a qualified expat tax professional who can help you to navigate the complexities of filing as an American living in Spain, which involves multiple reporting requirement in both the US and Spain, and there are some implications for investing, too.
Cost of Living
The cost of living in Spain varies depending on the region and the lifestyle you choose. Generally speaking, the cost of living in Spain is lower than in many major US cities , especially when it comes to housing and healthcare. However, other expenses, such as food, transportation, and utilities, may be higher than in the US if you live in Madrid or Barcelona for example. It’s important to research the cost of living in the region of Spain you’re interested in, and to factor in all of your expenses when planning your move.
Healthcare
Spain has a public healthcare system that provides coverage to all residents, including foreigners. However, if you’re an American citizen living in Spain, you may also need to purchase private health insurance to cover any gaps in coverage or to meet the requirements for a visa. Private health insurance in Spain can be expensive, so it’s important to budget for this when planning your move.
Banking and Currency
Opening a bank account in Spain is relatively easy, and many banks offer services in English. It’s important to be aware of the Euro/Dollar currency exchange rate and any fees associated with international money transfers (note that using a specialist broker can often save you a lot of money). Your expat financial advisor will be able to advise you about currency considerations as part of your overall financial planning, as it impacts saving, retirement planning and investing too. You may also want to consider opening a US bank account that offers fee-free ATM withdrawals and low foreign transaction fees to make it easier to access your funds while in Spain.
Visas and Residency
As an American citizen, you can visit Spain for up to 90 days without a visa. However, if you plan to stay longer or to work in Spain, you will need to apply for a visa and a residency permit. The process can be complex, and it’s important to work with a qualified immigration lawyer who can help you navigate the system and ensure that you meet all of the requirements. That said, there are plenty of visa options for Americans wishing to live in Spain, including so-called Golden Visas and Digital Nomad visas.
Investments and Retirement
If you have investments or retirement accounts in the US, it’s important to consider how moving to Spain will impact these accounts. You should always consult an expat specialist financial advisor who is experienced working with Americans living in Spain and so understands the intricacies of cross-border investing and multiple currency considerations to ensure that your US accounts are properly managed, and that you are investing in a tax efficient way that still lets you achieve your long term goals.
Language and Culture
While many people in Spain speak English, it’s still helpful to learn some basic Spanish to make your transition smoother and daily life easier. Cultural differences can also impact your day-to-day life in Spain, so it’s important to be aware of these differences and to be open to learning and adapting to a new culture.
In conclusion, moving to Spain is a highly rewarding choice that you will never regret, but it’s important to be prepared for the financial and cultural differences that you’ll encounter. Take into account the tax, currency and investment implications, the cost of living, healthcare, visas and residency, and language and culture, you can ensure that your move to Spain goes smoothly. Doing your research, being flexible and adaptable and working with specialist expat tax and financial advisors will also mean your move to Spain is bound to be a success.
If you have any questions about financial planning as an American living in Spain, get in touch.
This article is for informational purposes only; it is not intended to offer advice or guidance on legal, tax, or investment matters. Such advice can be given only with full understanding of a person’s specific situation.
