En español al final
US Tax Consultants, the former SYNCORDIA, is pleased to announce that we have begun to prepare the Individual and Corporate Federal and State U.S. Tax Returns for 2016, as well as the Spanish returns.
As you know, all U.S. persons (U.S. Citizens and Green Card holders) must annually file (1) their worldwide income to the IRS (Form 1040), if their gross income is at least $4,050 (married filing separately) or $10,350 (single.) Also, you must file (2) the FinCEN 114 or FBAR (Foreign Bank Account Report), if you have a financial interest in or signature authority over a foreign financial account, (including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account,) with an aggregate amount of $10,000 at any time during 2016. You are required to report the account(s) to the Financial Crimes Enforcement Network of the Treasury Department by filing the FinCEN Form 114, Report of Foreign Bank and Financial Accounts (FBAR).
We can file these two forms for you, as well as the other two Spanish Fiscal obligations: If you are a resident in Spain, (3) you will be taxed in Spain on your WORLDWIDE income at the IRPF (Impuesto sobre la Renta de Personas Físicas, Modelo 100) every year, before June 30th, if:
- Your gross income is higher than 22.000€, received from only one payer.
- Or you received income from more than one payer and the amount received from the second and other payers is more than 1.500€ and the annual gross income is over 12.000€.
It should include all your U.S source of income: a private pension, an annuity or SS Benefits from the U.S.A.
As a resident in Spain you also have the obligation of (4) reporting to the Spanish Tax Administration all rights and assets located abroad in Modelo 720, (deadline March 30,) which includes:
- the accounts in financial institutions located abroad
- the values, rights, insurance and annuities deposited, managed or obtained abroad
- all real estate and rights to property located abroad, including trusts
Obligaciones fiscales de los ciudadanos americanos residentes en España
Los ciudadanos de Estados Unidos residentes en España tienen anualmente 4 obligaciones fiscales:
Por un lado, tienen que presentar (3) la Declaración de la Renta, IRPF, antes del 30 de junio informando de los ingresos mundiales y pagando los impuestos correspondientes y (4) el Modelo 720, antes del 30 de marzo, informando de su patrimonio en el extranjero. Como ciudadanos americanos tienen que presentar anualmente en Estados Unidos el (1) Form 1040, declarando también las rentas mundiales y el (2) FinCEN 114 informado de las cuentas financieras que tengan abiertas en el extranjero.
Resident in Spain – Treaty on no-double taxation
An individual is resident of Spain if any of the following circumstances apply:
• Remain more than 183 days during the calendar year in Spanish territory, unless the taxpayer proves his tax residence in another country (through a tax residence certificate issued by the IRS, Form 8802).
• When the main center or base of their activities or economic interests, directly or indirectly, is located in Spain.
• When the spouse, not legally separated, and minor children who depend on this individual are residents in Spain.
If an individual is deemed to be a tax resident in Spain, the taxpayer will be taxed in Spain for his worldwide income. Income obtained anywhere in the world must be declared, subject to the provisions laid down in the Convention for the avoidance of double taxation between Spain and the U.S. (Feb. 20, 1999.)
U.S. and Spain Tax Treaty.
The agreement, based on the taxpayer’s country of residence, lists some types of income and the country where the income will be taxed or exempt of taxation