Thinking about trading gray skies for Mediterranean light? Before you pack your bags for Spain, we unpack the exact moves that protect your portfolio, your cash flow, and your peace of mind. Spain taxes by residency, the U.S. taxes by citizenship, and the two systems collide in ways that can either cost you dearly or, with the right structure, work in your favor.

We start with the moment Spain claims you: the 183‑day test, center of economic interests, and the family presumption. From there, we navigate the “saving clause” in the U.S.–Spain tax treaty and explain why the Foreign Tax Credit often zeros out your U.S. federal bill but never your filing obligations. We also spotlight the sticky states—California, New York, Virginia—and the steps needed to truly sever state tax residency. Then we dive into the game‑changer: the Beckham Law. You will learn who qualifies, the six‑year window, the flat 24% on Spanish employment income, and the powerful exemptions for foreign income and non‑Spanish assets from wealth tax and the solidarity levy.

Investors face a unique squeeze between Europe’s PRIPS rules and the U.S. PFIC regime. We break down two viable solutions: the options assignment strategy using a broker like Interactive Brokers, and direct indexing to mirror an index without touching PFIC‑land. Retirement savers get a reality check on Roth IRAs—Spain taxes the growth and counts the balance for wealth tax—plus practical guidance on traditional 401(k) and IRA distributions and how Social Security is treated under exemption with progression. We also compare regional wealth tax policies—Madrid and Andalusia’s relief versus Catalonia and Valencia’s higher rates—so your choice of city aligns with your balance sheet, not just your lifestyle.

To close, we flag the stealth risks that blow up credits: phantom currency gains when the dollar moves against your euro assets, and mismatched cost‑basis rules that force different gains in each country. You will leave with a crisp five‑point 2025 checklist: secure Beckham within six months, avoid PFICs with smart structures, cut state ties completely, pause Roth funding and plan for Spanish taxation, and choose the right region for wealth tax. Subscribe, share this with a friend planning a move, and leave a review with your top question for a future deep dive.

For detailed information, read the book Investing for US Citizens in Spain, a
Cross-Border Wealth Management and Investment Strategy.

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Moving, Working, and Investing for Americans Abroad