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Due dates of 2021 Fiscal obligations for US Citizens living in Spain.

Jan 10, 2021 | AEAT, FATCA, FBAR, IRPF Spanish Tax Return, IRS - Internal Revenue Service, Modelo 720, Spanish Tax Return for non-residents, US Tax Return 1040 / 1040NR | 5 comments

The 4 fiscal obligations for expats in Spain.

All U.S. Citizen you are re­quired to file a U.S. Individual Tax Return every year, wherever in the world they live, repor­ting your worldwide income, even if you pay taxes in Spain. You must file (1) the Form 1040 (Federal Income Tax), if your gross income is at least $5 (married filing separately) or $12,400 (single). Due day is Thursday, April 15, 2021. You must file your 2020 tax returns by this date! Expats have an automatic filing extension until June 15th, with a further extension available until October 15th upon request that we ask for automatically for all our clients for free.

You must also file (2) the FBAR (Foreign Bank Account Report) with the Financial Crimes Enforcement Network, FINCEN 114 before the due day on June 15th 2021, if the aggregate amount of all the maximum balances of your financial accounts outside the US, reach the amount of $10,000 at any point during the year 2020.

If you are resident in Spain, you will be taxed in Spain (3) on your worldwide income, no matter where it was obtained, subject to the provisions laid down in the Convention for the avoidance of double taxation between Spain and the U.S.A. (Feb. 20, 1990) and you need to report it at the IRPF (Impuesto sobre la Renta de Personas Física.): Apart from any Spanish income it includes all your U.S source of income:  e.g., a private pension, an anuity or SS Benefits from the U.S.A. It can be filed from April 4th to June 30th.

You are also required (4) to report your foreign assets to the AEAT (Agencia Tributaria Española) in the Modelo 720, before March 31st, 2021

If an individual is considered to be a Non-Fiscal Resident of Spain, during 2020 for Tax purposes, the taxpayer will be taxed only on his Spanish source income at a 24% Tax Rate. Non-Fiscal Residents do NOT have to file Modelo 720.

If you need any further information, please do not hesitate to contact us or book a free consultation appointment.

US Tax Consultants – info@ustaxconsultants.net – Phone +34 915194392

5 Comments

  1. John King

    Thank you for this helpful information.

    Question: what is a “non-fiscal resident” of Spain? Is it someone who has a Spanish residency card but lives in Spain less than six months a year?

    Reply
    • Antonio Rodriguez

      John,
      When we talk about residents, we normally refer to fiscal residents according to the Fiscal Law of Spain. Which nothing has to do with the Immigration Law, which is control by the Police and it only refers to resident permits, VISAs, and residence authorizations…
      A fiscal resident in Spain is someone who lives in Spain more that 183 days in the same natural year.

      Reply
  2. Covadonga Fuertes

    Antonio, soy Covadonga y ya te escribí y al final o sé si se envió mi correo pues se me cerró …

    Me dijeron por telf que el 11 de diciembre había salido un cheque de tax return de 2018. NADA ME HA LLEGADO.
    TAMPOCO DEL 2019
    NI STIMULUS CHECK NINGUNO-

    TE PARECE QUE SIGA ESPERANDO PACIENTEMENTE???

    ESO DE 720 NO CREO QUE APLICA A MI CASO.
    GRACIAS POR TU AYUDA.
    SALUDOS
    covadonga

    Reply
    • Antonio Rodriguez

      Covadonga,

      Los refunds de años anteriores 2018 y 2019 están llegando ahora…asi que lo más sensato es seguir esperando. Sobres los dos stimulus check lo mas fácil es esperar a la declaración de esta año Form 1040 2020 y reclamarlo en la declaración.

      Reply
  3. Sandy Torres

    I am a Spanish resident and when filing the Fbar, I have stocks in Caterpillar Inc.when I was working at Caterpillar, a Spanish entity here in Spain and they would manage the stocks . I went through my bank in Spain to transfer my stocks upon retirement and they are managed by a bank in NYC, do I claim the dividends in my 1040, since the stocks are in the USA, do I need to include them on the Fbar?

    Reply

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