Moving to Spain from the US: Your 2025 Guide
At least 36,000 US citizens were registered as residents of Spain in 2023, and that number continues to grow as Americans discover Spain’s incredible quality of life and affordable living. Here’s the relief you need to hear first: US citizens can move to Spain legally and affordably.
Even better news? Most Americans living in Spain owe little to no US taxes when they file correctly. Spain’s higher tax rates often generate enough foreign tax credits to eliminate US tax liability entirely. With proper planning using the Foreign Earned Income Exclusion and Foreign Tax Credit, you can exclude up to $130,000 of foreign-earned income and credit Spanish taxes dollar-for-dollar against US obligations.
The logistics are straightforward, too. Couples can live comfortably on $2,000-$3,000 monthly in most Spanish cities, and several visa options exist for different situations.
Can a US citizen move to Spain?
Yes, absolutely. US citizens have multiple legal pathways to live in Spain, and the process is more straightforward than many people expect.
- For short-term visits (up to 90 days), US citizens can stay visa-free for any 180-day period. Starting in 2026, you’ll need ETIAS, which will not change your visa-free status.
- For permanent moves: You’ll need a Spanish visa for over 90 days. The most popular options include:
- Non-Lucrative Visa: Perfect for retirees or those with passive income. You need €28,800 annual passive income for singles, plus €7,200 per dependent. You cannot work with this visa, which leads to permanent residency after five years.
- Work Visa: This visa is available if you have a job offer from a Spanish company. Your employer sponsors the application.
- Digital Nomad Visa: Spain’s newest option for remote workers, providing income from sources outside Spain.
- Self-Employment Visa: For entrepreneurs starting a business in Spain.
The Spain Golden Visa program (requiring €500,000 investment) ended on April 3, 2025, though existing applications are still being processed.
Many Americans successfully move to Spain through the non-lucrative visa, especially retirees with a steady pension or investment income.
Are You Ready to Move Abroad?
Choose the answer to each question that best describes you or your current situation, and learn how ready you are to start a life abroad.
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You’re an adventurer!
You have an adventurous spirit but you may need to prepare a bit more to ensure a smooth transition abroad. Consider researching more about the cultural, legal, and financial aspects of living overseas. Check out our guide 25 Thing Every Expat Should Know
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You’re on the right track. You’ve started to think about what life abroad will entail. Keep building on your preparations to avoid any surprises once you’ve moved. Check out our guide 25 Thing Every Expat Should Know
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You’re ready to move abroad! You seem well-prepared and have done your homework! You’re ready to embrace the expat life with confidence. Check out our guide 25 Thing Every Expat Should Know
How much money do you need to move to Spain?
The amount depends on your chosen visa and lifestyle, but Spain offers exceptional value compared to most US cities.
Visa financial requirements:
- Non-lucrative visa: €28,800 ($31,000+) annual passive income
- Digital nomad visa: €2,500+ monthly income
- Work visa: No specific amount if you have a job offer
Monthly living costs: A single person needs €1,200-€1,500 monthly to live comfortably. Spain is 41% cheaper than the US without rent and 52% cheaper including rent.
Quick cost comparison:
- 3-bedroom apartment rent: $1,050 (Spain) vs $1,760 (US)
- Basic utilities: $145 vs $210
- Monthly transport pass: $33 vs $66
- Internet: $35 vs $70
The tax advantage: Spain’s higher tax rates generate Foreign Tax Credits that typically eliminate most US tax liability, improving your overall financial situation. Many of our clients find their effective tax rate lower than what they paid in high-tax US states.
Is moving to Spain a good idea?
For many Americans, Spain offers outstanding quality of life improvements, especially if you prioritize work-life balance, culture, and affordability over maximum earning potential.
Why Americans choose Spain:
- 32.5% lower cost of living than the US
- Universal healthcare at a fraction of US costs
- Spain ranks 23rd globally for safety (the US ranks 132nd)
- Year-round mild climate in most regions
- Easy access to travel throughout Europe
- Rich cultural experiences and excellent food
- Pathway to EU citizenship after 10 years total
Realistic considerations:
- Spanish fluency significantly improves opportunities and integration
- Administrative processes can be complex initially
- Average salaries are lower in Spain
- Different work schedules and cultural pace
The bottom line: Spain works exceptionally well for retirees, remote workers, and those seeking lifestyle changes. With proper planning, especially around taxes, most Americans find the move enhances both their quality of life and financial situation.
Is it cheaper to live in Spain or the US?
Spain is significantly more affordable than the US across virtually every category, making it one of the most budget-friendly countries in Western Europe for American expats.
Housing savings: The most significant difference is housing costs. You can find quality housing outside Madrid and Barcelona for 50-70% less than comparable US metropolitan areas.
Daily expenses cost much less:
- Groceries, utilities (€100-€150 monthly), transportation, healthcare
- Dining out costs about 63% less than in the US
Where Spain costs more:
- Imported American brands, electronics, Madrid/Barcelona rentals
Tax impact enhances savings: While you’ll file taxes in both countries, Spain’s higher income tax rates generate foreign tax credits that typically eliminate US tax liability. Many of our clients find their overall tax burden similar to or lower than that of high-tax US states while enjoying much lower living costs.
Real example: A retired couple with a $60,000 annual income can live very comfortably in most Spanish cities, where there is excellent healthcare and a rich cultural life. In the US, this same income provides a much more modest lifestyle.
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How hard is it to move to Spain from the US?
Moving to Spain isn’t difficult, but success depends on choosing the right visa path and proper preparation, especially around tax planning.
- Multiple visa options for different situations
- There are no restrictions on where Americans can live
- Strong expat communities for support
The 7 biggest mistakes when moving to Spain:
- Not planning taxes before the move
- Choosing the wrong visa for your situation
- Underestimating language requirements
- Failing to research regional differences
- Not having proper documentation ready
- Ignoring FBAR requirements for foreign bank accounts
- Not planning for property taxes and capital gains implications
Timeline for success: Start planning 12-18 months ahead for Spanish lessons, finances, tax strategy, and visa applications.
What about my US taxes when I move to Spain?
This is where many Americans get overwhelmed, but here’s the relief: most Americans living in Spain owe little to no US taxes when they file correctly.
The key facts:
- You must file US tax returns regardless of where you live
- Spain’s higher tax rates (up to 47% vs the US 37%) work in your favor
- The two main protections typically eliminate US tax liability
- Proper planning before you move maximizes benefits
The two protections that eliminate most US taxes:
- Foreign Earned Income Exclusion: Exclude up to $130,000 (2025 tax year) of foreign earned income from US taxation.
- Foreign Tax Credit: Dollar-for-dollar credit for Spanish taxes paid. Since Spain’s rates are higher, this often eliminates US liability entirely.
Important deadlines:
- US taxes: June 15 automatic extension for expats
- FBAR: April 15 for foreign bank accounts over $10,000
Special considerations: Spain’s Beckham Law, offering favorable tax rates, might benefit high earners. Retirees should review our retiring in Spain guide for retirement-specific strategies.
For comprehensive tax guidance specific to Spain, see our Americans in Spain tax guide.
What should I do next to make this move happen?
Moving to Spain offers incredible opportunities for a better quality of life, lower costs, and rich cultural experiences. Success comes down to proper planning, especially around taxes.
Your immediate action steps:
- Determine your visa path based on your age, income, and work situation
- Start learning Spanish if you haven’t already
- Plan your tax strategy before you move to maximize benefits from day one
- Choose your location based on your priorities (jobs, cost, climate, culture)
- Connect with professionals who specialize in US-Spain transitions
Tax planning matters: The interaction between the US and Spanish tax systems can save or cost you thousands. Many of our clients benefit from tax planning conversations before they move to set up their strategy correctly from the start.
Get expert help: Moving to Spain involves complex tax implications that most Americans are unaware of. Whether planning your move or living in Spain, proper guidance ensures you take advantage of every available benefit while staying compliant in both countries.
Ready to make your move tax-smart? Contact us, and one of our customer champions will gladly help. If you need specific advice on your tax situation, click below to get a consultation with one of our expat tax experts.
This article is for informational purposes only and does not constitute tax advice. Tax laws can change, and individual circumstances vary. Please consult with a qualified tax professional for advice specific to your situation.
