Moving to Spain… without the Golden Visa 

We start this article with the very latest – the Spanish government has officially voted to eliminate it’s Golden Visa at the start of 2025. This is an understandable response to some of the more damaging effects of that program. It does not mean that the country is not open to new residents from the US under other programs.  

Below are just some of the remaining visas available to you as a non-EU national, along with things you should know about immigrating to Spain, and a little about taxation in the country. 

Non-lucrative Residency Visa  

This is probably the easiest option if you don’t have EU citizenship or Spanish family. But it depends on your having enough income to live without a job or freelance activities. In other words, you should be able to show that your income is from investments, royalties, pensions or retirement funds.  

The current minimum income for non-lucrative visa applicants is about 28,800 EUR per year. And you must also show that you’ve procured an appropriate health insurance policy for use in Spain and have no serious criminal record. 

Non-lucrative visa holders can also bring spouses or dependent children with them on the visa. But no member of the household will have a work permit, plus the financial requirements increase with the addition of household members. 

The visa lasts for one year but is renewable as long as you continue to meet the requirements. After five years, you can apply for permanent residency. This status does broaden your rights in the country, including the right to work. So non-lucrative visa holders could theoretically restart their earnings after obtaining permanent residency. 

You can apply for citizenship in Spain after ten years but note that you may not retain US citizenship with Spanish naturalization. However, Spain does allow dual citizenship with Portugal and a list of Spanish-speaking countries throughout the world. 

Digital Nomad Visa 

If you are planning to work from Spain but your work will remain outside the country, this is probably the visa for you. Implemented in 2023, the Digital Nomad visa is quite new and came in with Spain’s “start-up” law (Fomento del Ecosistema de Empresas Emergentes) to attract skilled foreign talent in keeping with the larger EU “blue card” scheme. 

Applicants must have either three years of experience or a recognized degree, undergraduate or graduate, in their field. Applicants who are salaried workers must be working remotely for non-Spanish companies by whom they’ve been employed for at least three months before applying.  

Self-employed workers can also qualify. They must show that no more than 20% of their income from professional activities comes from Spanish companies. 

The Digital Nomad Visa allows you to bring over spouses and dependents, including minor or adult children, dependent parents or dependent grandparents. 

If you apply for this visa on your own, your minimum income should be at least twice the Spanish minimum wage (about 2,700 EUR per month right now). Add to that 75% of the minimum wage (which comes to about 1,000 EUR per month) for one other person coming with you on the visa and then add 25% of the minimum wage (about 350 EUR) for each person thereafter. 

Your first Digital Nomad Visa will be for between one and three years, depending on the nature of your application. After that, you can renew for up to five years. And after five years in Spain, you can apply for permanent residency. 

Spanish naturalization is possible for those who have lived in the country for at least ten years but see the caution above about dual citizenship for US nationals. 

Spanish Start-Up Visa  

Spain issues these visas on a case-by-case basis for those who wish to start a new business in the country. While there are no minimum investment requirements for the business, you do need to show that your idea is “innovative” and of particular economic interest to the country. You will need a full business plan and projections to apply. And you should show that you have enough funding to support yourself while you get started. 

The Start-Up Visa is renewable and does allow you to bring spouses and dependents. We recommend you consult one of the many Spanish immigration services to determine which business visa is most appropriate to your project. 

Taxes in Spain 

Once you get to Spain, you will most likely be deemed a Spanish resident for tax purposes. The basics of tax in Spain for US citizens are given below. But it is worth starting with the Special Expats Tax Regime (SETR). If you are a fútbol fan, this is known otherwise as the Beckham law. 

SETR 

The SETR applies to people who move to Spain specifically to take a job offer, start a business (per your visa), or to serve as the Director of a Spanish company of which you do not own more than 25%. Most of your earnings from work need to be for work you carry out in Spain (no more than 15% to be carried out outside the country). 

You must not have lived in Spain for the previous five years, and the tax breaks last for the first six years of your tax residency in Spain. 

So what does the law do? It exempts people who qualify for the progressive tax rates that would otherwise apply and instead taxes you at a flat rate of 24% of your earned income (i.e. wages or self-employment) up to 600,000 EUR per year. Over that, the rate is 47%. 

It also exempts your investment income from abroad – interest, dividends and capital gains – from Spanish taxation for that first six years. 

In addition, certain regions of Spain have chosen to relieve expats under this regime of all or most of the gift tax for sums from abroad, which could be pertinent if you are expecting gifts or inheritance from an immediate family member in the US. 

If you are eligible, you should apply for SETR treatment within the first 6 months of moving to Spain. Note that unlike many countries, Spain does not allow you to split the tax year. You will be taxed on all income for the calendar year when you established residency. 

Personal Income Tax (PIT) 

As in the US, Spain’s tax system is progressive. You take your personal deductions, divide your taxable income into brackets, apply the applicable rate to each bracket, and add up the total. Spain has two basic tax scales, one for estimated income tax withholdings on “general income” (i.e. wages and self-employment earnings) and one  for most investment income (i.e. interest, dividends and capital gains). 

The brackets for general income will vary depending on your region. For informational purposes, we list the brackets for Madrid, which doubles all standard state rates. The brackets (in euros) in 2024 for that city are: 

State Region Total 

Up to 12,450 9.5% 9.5% 19% 

12,451 to 20,200 12%        12% 24% 

20,2001 to 35,200 15% 15% 30% 

35,201 to 60,000 18.5% 18.5% 37% 

60,001 to 300,000 22.5% 22.5% 45% 

Above 300,000 23.5% 23.5% 47% 

 

The brackets for investment income in 2024, in euros, were as follows: 

Up to 6,000 19% 

6,001 to 50,000 21% 

50,001 to 200,000 23% 

200,001 to 300,000 27% 

Above 300,000 28% 

 

US tax treaty 

The US and Spain have signed a treaty to avoid double taxation. You can find it on the IRS website here: https://www.irs.gov/businesses/international-businesses/spain-tax-treaty-documents.  

As is common in US treaties, the United States reserves the right to tax its citizens on worldwide income, no matter where they are actually living. But it will allow you to use the Foreign Earned Income Exclusion (FEIE) to remove some wages and self-employment income earned abroad from your taxable income on your form 1040, the Foreign Tax Credit (FTC) to take a credit for taxes you already paid abroad, and certain other provisions.  

US expats living in Spain will pay taxes in that country on US social security benefits, US investment account income, and other retirement income. They then generally use the FTC (above) to eliminate the US taxes on that amount. 

Spain will also tax any wages or self-employment income you earn worldwide with certain exceptions. In addition to the SETR law described above and some special provisions for seconded workers, Spain allows a tax exemption of up to 60,100 annually for work performed abroad by a Spanish resident. This exemption does depend, however, on the earnings being taxed in that other country, so it does not operate to make those earnings completely tax-free. 

 

The Spanish wealth tax 

Spain applies a wealth tax on any resident whose worldwide assets exceed the allowance. And this allowance can vary according to your region. The state general allowance is 700,000 EUR and 300,000 EUR for a primary home. So, if you have more assets than this, not matter in what country, you will likely be liable for the wealth tax.  

The actual tax is calculated on the amount by which your wealth exceeds the allowance. At the state level, you pay .2% for the first 167,129 EUR over the allowance and 3.5% above that. But again, this could vary slightly by region. 

If you have wealth above the 4,000,000 EUR mark, you will pay a solidarity tax instead of the wealth tax above. Again, the amount of this varies by region. 

Note that Spain (like the US) has an “exit tax” for high wealth individuals who shift their residence to another country after at least 10 years. 

 

And a final note on the former Golden Visa 

If you were in the process of applying for a Golden Visa or already have one, don’t panic. The new law allows for a transition period before the visa is eliminated entirely. Consult your Spanish immigration attorney or Spanish authorities if you have any questions.