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Move to The US from Spain with Expert Expat Financial Advice Now

Blacktower FM - Your Trusted Partner for Wealth Management Solutions and Financial Advice

Move from Spain to the US with Expert Expat Financial Advice
Relocate securely and protect your wealth with cross-border planning from Blacktower Financial Management.

Moving from Spain to the United States is an exciting new chapter — whether you’re pursuing career opportunities, education, or a lifestyle change. But behind the excitement, there’s a crucial layer of financial planning to address. The US financial system, tax rules, and reporting obligations differ significantly from Spain’s, and failing to plan properly could lead to unnecessary tax exposure or compliance issues.

Whether you’re an expatriate professional, retiree, or investor, preparing financially before leaving Spain ensures you transition smoothly — with your wealth protected, your investments structured correctly, and your tax obligations clearly understood.

Here’s how to make your move from Spain to the US with clarity and confidence.


1. Why Move from Spain to the United States

Many residents of Spain — both native Spaniards and expats — are drawn to the US for its:

  • Professional and business opportunities in major hubs like New York, Miami, and California.
  • Access to top-tier education for themselves or their children.
  • Cultural and lifestyle diversity, with dynamic cities and vast natural landscapes.
  • Entrepreneurial and innovation-driven economy.

While the opportunities are vast, the move from Spain’s EU-based tax and legal framework to the US’s globally applied tax system requires expert guidance to protect your financial position.


2. Understand the Tax Landscape Before You Move

Spain and the US have fundamentally different taxation systems:

  • Spain taxes residents on their worldwide income once they have lived there for more than 183 days in a year.
  • The United States taxes all citizens and residents on their worldwide income, regardless of where it’s earned.

This means that once you establish US tax residency (often under the Substantial Presence Test), you must report all global income to the Internal Revenue Service (IRS) — including investment returns, rental income, and pensions from Spain or elsewhere.

Before you move, it’s vital to:

  • Confirm your Spanish residency status and the date you’ll cease to be tax resident there.
  • Understand your reporting obligations to the Spanish Tax Agency (Agencia Tributaria) for the final year.
  • Review your global assets to ensure they’re structured appropriately for US tax treatment.

3. Review and Restructure Investments

Spain’s investment products — such as Spanish funds, life assurance bonds, or bank savings plans — are designed for EU tax regimes and may not be compatible with the US system.

Many EU-based funds are treated as Passive Foreign Investment Companies (PFICs) by the IRS, resulting in punitive taxation on gains and additional reporting requirements.

Before moving to the US, you should:

  • Review all existing investments (including Spanish or EU-based mutual funds and insurance bonds).
  • Consider liquidating or transferring them to US-compliant investment vehicles.
  • Work with a cross-border financial adviser to create a globally diversified portfolio aligned with US tax law.

This proactive approach ensures your investments remain efficient and avoids costly PFIC-related penalties once you become a US resident.


4. Pensions and Retirement Planning

If you’re retiring or have pensions based in the UK or EU, it’s essential to plan how these will be treated when you move to the US.

  • Spanish pension schemes are generally taxable when drawn as income in the US.
  • UK pensions (including SIPPs or QROPS) may also be subject to US taxation, depending on the US–UK or US–Spain Double Taxation Treaty applicable to your situation.
  • Withdrawals, transfers, and lump sums need careful timing and structuring to avoid double taxation or early withdrawal penalties.

A specialist adviser can help you evaluate your options and ensure that pension income remains efficient and compliant after relocation.


5. Property and Capital Gains Tax

If you own property in Spain, you’ll need to decide whether to sell or retain it before moving.

  • Selling while still resident in Spain may incur Spanish Capital Gains Tax (CGT) of up to 26%, though exemptions exist for primary residences or reinvestment into another EU property.
  • If you keep the property as a rental, you’ll be required to declare the rental income in both Spain and the US, but the US–Spain Double Tax Treaty allows for offsetting taxes paid.
  • Upon sale as a US resident, any gain may also trigger US capital gains tax, so structuring ownership correctly before moving is crucial.

Your adviser can help you balance your long-term investment goals with tax efficiency and liquidity needs.


6. Estate and Inheritance Planning

Spain and the US have very different inheritance tax systems.

  • Spain levies Inheritance and Gift Tax (Impuesto sobre Sucesiones y Donaciones) at varying regional rates.
  • The US imposes Estate and Gift Taxes at the federal level, which can apply to worldwide assets for US residents and citizens.

If you have assets in both countries — such as property in Spain and investments in the US — it’s vital to:

  • Review your Will or estate plan so that it is legally valid in both jurisdictions.
  • Consider cross-border estate planning tools like trusts or life assurance policies to simplify transfers and reduce taxes.
  • Coordinate your legal and financial structures to ensure assets pass to beneficiaries efficiently.

7. Currency and Banking Management

While both Spain and the US use major global currencies, euro-to-dollar transfers and conversions can be costly if not managed well.

To stay financially flexible:

  • Open multi-currency accounts before departure.
  • Use FX specialists to secure competitive exchange rates for large transfers or regular payments.
  • Review your cashflow planning, especially if you’ll continue receiving income in euros (e.g. from Spanish property or pensions).

Managing currency efficiently ensures that your lifestyle and wealth remain stable during your move.


8. Health Insurance and Protection

Unlike Spain’s universal public healthcare system, the US relies heavily on private health insurance.

Before moving:

  • Review your options for employer-sponsored, private, or international health insurance.
  • Check whether your existing Spanish or EU coverage can be maintained temporarily.
  • Reassess your life and income protection plans to ensure coverage continues in the US.

A financial adviser can connect you with trusted insurance partners to secure appropriate protection from day one.


9. Double Taxation and Compliance

Fortunately, the US–Spain Double Taxation Treaty prevents you from paying tax twice on the same income. However, it does not exempt you from filing returns in both countries.

You may need to:

  • Submit final Spanish tax returns before departure.
  • File annual US federal (and possibly state) tax returns once resident.
  • Report global financial accounts exceeding $10,000 to the US Treasury (FBAR reporting).

An experienced cross-border adviser can help coordinate filings and ensure compliance under both systems.


10. How Blacktower Can Help

At Blacktower Financial Management, we’ve been supporting expatriates across Europe and the US since 1986, helping them relocate, invest, and plan their financial futures with confidence.

Our cross-border expertise means we understand the financial complexities of moving from Spain to the United States — and how to overcome them.

Our team can help you with:

  • Pre-move financial and tax planning to avoid pitfalls.
  • Investment restructuring into US-compliant portfolios.
  • Pension transfer and income strategy for retirees.
  • Estate and inheritance planning across jurisdictions.
  • Currency management, insurance, and protection solutions.

With offices across Europe and partnerships in the US, we’re uniquely positioned to help you manage your wealth before, during, and after your relocation.

At Blacktower FM, we specialize in providing comprehensive financial solutions specifically designed for expatriates living in the United States. Our team of financial experts are well-versed in the complexities of wealth tax, income tax, capital gains tax, property tax, mortgages, and more.

Your free consultation awaits

Take the first step towards securing your financial future as an expat. Contact us today to book a free consultation with one of our experienced advisors. Let us guide you towards financial success in the United States.

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