Moving to Spain from the USA: What you need to know

Moving to Spain from the USA: What you need to know.

This informative guide is contributed by Rosana Tejada Crespo at Tejada Solicitors. It touches on everything you need to know when planning a move from the United States to Spain.

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Why Spain is the top choice for American expats in 2026

Spain has become an increasingly popular destination in recent years among Americans. Whether a professional, remote worker, entrepreneur or retiree, there are immigration avenues available. In fact, what makes Spain attractive is the legal clarity of those options. We’ll cover these options below.

But the most persuasive “pull factors” are undoutedly related to quality of life: weather, comparative affordability, a relaxed lifestyle and a very healthcare infrastructure.

Lifestyle and cost of living in Andalusia

Andalusia, particularly the Costa del Sol, remains a primary destination for Americans. And although “beach” comes to mind for most with the mention of Andalusia, there is actually much more to the region. 

Málaga and Granada are two examples.

Málaga and its province are known for the Costa del Sol and its many beach towns. But there’s more to it than that: Málaga has developed into a technology-oriented and internationally connected city with a strong airport, modern healthcare facilities, and a growing base of multinational companies. It’s appeal is not only with retirees but also to remote professionals and internationally mobile families.

Granada is very different: a beautiful and historic city with the backdrop of the Sierra Nevada mountains (where you can ski) and the Mediterranean coast in close proximity. It is a very attractive option for those  prioritizing cultural immersion and affordability.

Both cities offer a lower overall cost structure than major U.S. metropolitan areas while being dynamic and cosmopolitan cities. They are an example not only of the diversity of relocation posibilities in Andalusia but in all of Spain.

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Navigating the visa maze: Choosing the appropriate immigration path

For U.S. citizens, the immigration process typically begins at the Spanish Consulate with jurisdiction over their state of residence. Applications are generally submitted in the United States prior to travel, unless the chosen route allows in-country processing, as is the case with certain categories such as the Digital Nomad Visa.

Selecting the correct visa is not just your path to entry into Spain. It determines the scope of permitted activities in Spain, renewal requirements, physical presence obligations, and, in many cases, exposure to tax residency. Immigration status and Spanish tax residency for US citizens often become interconnected once physical presence thresholds are met or economic interests are centred in Spain. The immigration pathway should therefore align with the applicant’s income structure, professional activity and long-term plans.

Below are some of the most common routes for American nationals relocating to Spain.

1. The digital nomad visa (DNV): For remote professionals and freelancers

Spain’s Digital Nomad Visa has become a primary option for highly qualified professionals who provide remote services to companies located outside Spain.

Economic requirements (2026 update)

The principal applicant must demonstrate income equivalent to at least 200 percent of the Spanish minimum wage (SMI), currently approximately €2,849 per month or €34,188 annually.

For accompanying family members, the threshold increases by 75 percent of the SMI for the first dependent (approximately €1,068 per month) and 25 percent of the SMI for each additional family member (approximately €356 per month).

Professional eligibility

Applicants must provide evidence of an employment or service contract of at least 3 months with a foreign company that has been operational for at least 1 year. In addition, they must demonstrate either a university degree or at least three years of relevant professional experience.

Strategic advantages

When filed from within Spain through the Large Companies and Strategic Groups Unit (Unidad de Grandes Empresas, UGE), the initial authorization is granted for three years and may be renewed for an additional two years. Unlike some other visas, applicants can apply for the digital nomad visa in Spain, making it an attractive option.

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2. The non-lucrative visa (NLV): For retirees and passive income holders

The non-lucrative visa (NLV): For retirees and passive income holders.

Financial requirements (2026)

Based on 400 percent of Spain’s IPREM index, the principal applicant must demonstrate an annual income of approximately €28,800, or a guaranteed monthly income of €2,400. Each additional family member requires an additional €7,200 annually.

Activity restrictions

This visa does not authorize employment or business activity in Spain. However, holders may pursue studies or certain limited activities compatible with the terms of residence.

Physical presence obligations

Under Royal Decree 1155/2024, renewal requires effective residence in Spain for at least 183 days per calendar year. In practice, this threshold often results in Spanish tax residency. This is a condition which should be considered and evaluated before applying.

It should be noted that the non-lucrative visa has to be applied for at the Spanish consulate with jurisdiction over their state of residence.

3. The golden visa: an option being phased out…

Spain’s Golden Visa historically allowed non-EU nationals to obtain residency through qualifying investments, most commonly the purchase of real estate valued at €500,000 or more. Its appeal for U.S. investors stemmed from the flexibility it offered, particularly limited physical presence requirements in Spain.

That framework has now changed. Spain has moved to phase out the real estate-based Golden Visa route for new applicants, meaning property ownership alone no longer secures residency rights. While existing holders may retain their status under transitional rules, new applicants must rely on alternative immigration pathways.

For many U.S. nationals, structured options such as the Digital Nomad Visa, the Non-Lucrative Visa, or entrepreneur and highly qualified professional permits provide clear legal options. The key is to align the residency strategy with investment plans, income structure, and long-term presence in Spain.

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Tax in Spain for US citizens: From the IRS to Hacienda

For Americans establishing residence in Spain, understanding taxes in Spain for US citizens is often the most technically demanding aspect of the relocation process. U.S. nationals remain subject to ongoing federal reporting and payment requirements regardless of residence, meaning US tax obligations living in Spain continue even after departure from the United States. At the same time, Spanish tax residency for US citizens may trigger full taxation in Spain once statutory thresholds are met.

As a result, most Americans in Spain operate within a dual compliance framework that requires careful coordination under the U.S.–Spain Double Tax Treaty. Understanding when Spanish tax residency begins, how worldwide income is treated, and which reporting obligations apply is essential to avoid duplication, penalties or inefficient structuring.

Understanding tax residency (the 183-day rule)

Under Article 9 of Spain’s Personal Income Tax Law, an individual is considered a tax resident in Spain if any of the following conditions are met:

• Physical presence in Spain for more than 183 days during the calendar year. Sporadic absences are counted unless the individual can demonstrate tax residency in another country.
• The individual’s main center of economic interest is located in Spain, directly or indirectly.

Once tax residency is triggered, Spain generally taxes worldwide income, not only Spanish-source income.

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Key tax consequences for U.S. nationals

1. Personal Income Tax (IRPF)

Spanish tax residents are subject to taxation on worldwide income, including employment income, pensions, dividends, interest, rental income, capital gains, and financial accounts. The U.S.–Spain Double Tax Treaty provides mechanisms to mitigate double taxation, typically through foreign tax credits or allocation rules depending on the income category. Proper treaty application is essential to avoid overpayment.

2. Wealth Tax and Solidarity Tax

In Andalusia, the Wealth Tax has been effectively reduced to zero since late 2022. However, a filing obligation (Form 714) remains if total assets exceed €2,000,000, regardless of the final tax due.

At the national level, the Temporary Solidarity Tax on Large Fortunes applies to individuals with net assets exceeding €3,000,000. In practice, taxation generally begins at approximately €3,700,000 after the €700,000 general exemption is applied. This tax is filed using Form 718 between July 1 and July 31 of the following year.

3. Foreign Asset Reporting (Form 720)

Spanish tax residents must file Form 720 if they hold foreign bank accounts, investments, or real estate with a combined value exceeding €50,000 in any reporting category. This informational filing does not itself create tax liability, but non-compliance can result in substantial administrative penalties.

Succession planning: Electing U.S. law

Under Article 22 of EU Regulation 650/2012, U.S. citizens residing in Spain may elect the law of their nationality to govern their succession. This election can be formalized in a Spanish will.

In cross-border estates, coordination is critical. A Spanish will drafted in a bilingual format (Spanish and English) can provide clarity while ensuring compliance with both Spanish formal requirements and U.S. estate-planning considerations. Alignment between jurisdictions helps preserve testamentary intent and reduce procedural complications for heirs.

The Beckham Law: A tax break for moving professionals

Article 93 of Spain’s Personal Income Tax Law governs the special regime for inbound workers, commonly known as the Beckham Law (named after the football player). This regime may provide significant tax predictability for qualifying individuals relocating to Spain for employment.

Key features include:

• A flat 24 percent tax rate on employment income earned in Spain, applicable up to €600,000 annually.
• Foreign-source dividends, interest, and capital gains are generally excluded from Spanish taxation under the regime.
• Eligibility requires that the individual has not been a tax resident in Spain during the previous five years and that the regime is elected within six months of registering with Spanish Social Security.

When properly structured, this regime can substantially alter the effective tax burden during the initial years of residence. However, eligibility, income composition, and long-term residency plans must be evaluated in advance to determine whether it aligns with the individual’s broader financial strategy.

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Real estate essentials: Buying property in southern Spain

Property acquisition remains one of the most common steps for U.S. nationals relocating to Spain, particularly in Andalusia. Whether the objective is primary residence, investment, or long-term relocation planning, the transaction must be approached with awareness of the legal and tax framework governing Spanish real estate. 

In Andalusia, total closing costs typically range between 10 percent and 13 percent of the purchase price. The exact figure depends on whether the property is a resale or new construction:

• Resale properties are subject to Transfer Tax (Impuesto sobre Transmisiones Patrimoniales, ITP), currently 7 percent of the purchase price.
• New-build properties are subject to 10 percent VAT (IVA), plus 1.2 percent Stamp Duty (Actos Jurídicos Documentados, AJD).

Additional costs include notary fees, land registry fees, and legal representation. These figures should be built into your overall budgeting before entering into an agreement.

Why a solicitor is non-negotiable in the Spanish buying process

Unlike in many U.S. transactions, the Spanish notary does not represent the buyer or seller. The notary’s role is limited to verifying the legality of the deed and recording the transaction. An independent solicitor is the only professional whose duty is to protect the buyer’s legal and financial interests.

• Due diligence. A comprehensive legal review includes obtaining a Land Registry extract (Nota Simple) to confirm ownership and identify encumbrances, verifying outstanding mortgages or liens, reviewing community fee status, and confirming that property taxes are current. In addition, urban planning compliance must be assessed, often in coordination with an architect, to ensure that the property complies with municipal licensing and zoning regulations.
• Bilingual contractual clarity. Purchase agreements are legally binding documents governed by Spanish law. Drafting or reviewing contracts in dual-column format (Spanish and English) ensures that the buyer fully understands the rights, obligations, penalties, and timelines established in the transaction.
• Full transactional coordination. Legal counsel also facilitates obtaining a Spanish tax identification number (NIE), assists with opening a Spanish bank account, and can represent the buyer through a notarized power of attorney if personal attendance at closing is not feasible.

A properly structured purchase minimizes exposure to hidden liabilities and ensures that the property is legally secure from both registry and urban-planning perspectives. For international buyers, particularly those managing assets across jurisdictions, legal oversight is not an optional safeguard but a fundamental component of risk management.

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Practical steps for a smooth transition

Once the immigration pathway and tax framework have been defined, you’ll face some of the bureaucratic hurdles that come with any international move. You’ll have to plan health coverage, banking and identification numbers. It is always best to address these prior to moving to Spain.

For U.S. citizens, implementation planning should also reflect the broader legal requirements for US citizens moving to Spain, ensuring that immigration compliance, tax registration and local administrative formalities are aligned from the outset. A structured approach reduces delays, avoids last-minute document issues and ensures that residency authorization remains uninterrupted.

Health insurance and healthcare access

Legal residence for U.S. citizens is directly linked to maintaining qualifying health coverage. For visas such as the Non-Lucrative Visa and the Digital Nomad Visa, private health insurance is a mandatory requirement.

The policy must provide coverage equivalent to Spain’s public healthcare system, without co-payments, waiting periods, or coverage gaps. Spanish consulates and immigration authorities apply this requirement strictly.

Selecting compliant coverage before filing the visa application is therefore essential to avoid procedural delays or denials.

Banking and currency exchange strategy

Financial structuring is one of the first operational steps in relocation. A Spanish bank account is necessary for property purchases, utility contracts, tax payments, and, in many cases, residency processing.

Obtaining a Spanish tax identification number (NIE) is typically required before opening a bank account. Coordinating this process in advance, including representation through a power of attorney where appropriate, can significantly streamline the transition. Early planning also allows for more efficient currency exchange strategies, particularly when transferring substantial funds for property acquisitions or long-term living expenses.

Proper sequencing of identification, banking, and capital transfers reduces administrative friction during the initial phase of residence.

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Conclusion: Planning your move with confidence

Relocating from the United States to Spain in 2026 requires technical coordination across immigration law, tax planning and asset structuring. Visa selection affects physical presence obligations and exposure to tax residency. Income composition determines how treaty provisions apply. Property acquisitions require rigorous due diligence. Each decision influences the next, particularly where taxes in Spain for US citizens intersect with continuing U.S. reporting responsibilities.

A successful transition depends on aligning these elements within a single, coherent strategy. When international tax lawyers, solicitors, and real estate professionals operate in coordination, the relocation process becomes structured rather than uncertain.

With integrated advisory support, American expats can establish residence in Andalusia with clarity, regulatory compliance, and long-term asset protection firmly in place.

Related: Our Experience with Private Health Care in Spain

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