Taxes and Declarations for U.S. Citizens Living in Spain

Collaboration between Conesa Legal and Leticia Balcazar, J.D., LL.M. - U.S. International Tax Attorney.

Are you a U.S. citizen living in Spain? If so, you probably have U.S. tax obligations, even if you already pay taxes to the IRS in Spain. The good news: with the right advice, you can avoid double taxation, comply with the IRS and reduce your tax burden.

Thanks to the collaboration between Conesa Legal and Leticia Balcazar, a US international tax expert, you can now access a coordinated solution between the two countries. This article explains how.

U.S. International Tax Lawyer for Expatriates United States Expatriates in Spain

Leticia Balcazar, J.D., LL.M., is an experienced U.S. international tax attorney who collaborates with Conesa Legal to provide comprehensive legal and tax support to U.S.expatriates residing in Spain.With more than 20 years of experience advising individuals, entrepreneurs and investors globally, Leticia brings deep expertise in US tax compliance, cross-border business and estate planning, and expatriation strategies .

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Tax Services for US Expatriates in Spain

Below is a complete list of legal and tax services that Leticia Balcazar and Conesa Legal offer to U.S. citizens residing in Spain:

EXEMPT DEBT INVESTMENT WHEN LENDING

Leticia has quite experience advising US citizens whis lends.

Find here link to Bloomberg tax article where she explains that Sections 871(h) and 881(c) of US Tax Code "waive the withholding requirement for foreign individual and entity lenders in what’s known as the portfolio interest exemption. The entire interest payment goes to the foreign lender, making it tax-free to the lender and still deductible by the borrower.

Moreover, a foreign lender holding a portfolio debt investment is exempt from US estate and gift taxes when transferring the loan during their lifetime or upon death.

Portfolio interest loans may also be used to protect assets from potential creditor claims."

Tax Benefits for US citizens in SPAIN

As she explains in her article:

"Foreign lenders benefit from the portfolio interest exemption by boosting their investment returns without taking a tax haircut on the interest earned from US debt investments.

US borrowers benefit by deducting qualifying interest to reduce their tax bite and by protecting valuable assets from creditor claims with a completely transparent first-priority lien held by a favorable lender.

Cross-border families benefit by increasing their overall wealth. Instead of going to US banks for loans, US business owners with family ties abroad boost their family’s wealth by funding their business ventures, purchases, or investments from relatives overseas or their affiliated foreign companies.

The foreign family earns tax-free interest from the US, and the US family reduces their tax bite with interest deductions, thereby growing the multinational family’s overall wealth. Finally, a foreign individual lender can forgive the loan tax free during life or leave it as a tax-free legacy to US or foreign family members at death."

For more information contact our tax advisor and we will shedule meeting with Leticia.

Complying with their taxes as US expatriates

Filing Form 1040 from abroad.
Reporting of foreign accounts(FBAR) and financial assets(FATCA, Form 8938).
Reporting of ownership in foreign companies and trusts(Forms 5471, 3520, 8865).
Regularization through the Streamlined Offshore program.

International Tax Planning and Double Taxation Treaty

Application of the tax treaty between the U.S. and Spain to avoid double taxation.
Foreign Earned Income Exclusion strategies and foreign tax credits.
Coordination of tax residency in both countries.
Advice on joint or individual filing as appropriate, allowing for international tax optimization.

design of an international tax structure adapted to your profile.

Advice on real estate ownership and investments between the U.S. and Spain.
Identification of investments not advisable for US citizens (e.g. avoidance of PFICs).
Optimization of legal structures for capital and income repatriation.

Estate Planning and Transfers: Inheritance between the U.S. and Spain.

Drafting of internationally valid wills.
Estate planning and transfer of gifts and inheritances to minimize taxes.
Coordination between U.S. and Spanish inheritance laws.
Protection of multi-generational family wealth.

Expatriation and Exit Tax: How to Relinquish Citizenship without Tax Surprises.

Analysis of the impact of the U.S . Exit Tax.
Classification as covered expatriate or not.
Filing Form 8854 and planning to avoid penalties.
Complete guidance for renouncing green card or U.S. citizenship in compliance with the IRS.

Tax Advice for Entrepreneurs and Self-Employed between the U.S. and Spain.

Structuring of companies in Spain from a U.S. tax perspective.
Filing for participation in foreign companies.
Optimization of dividend and salary extraction.
Tax and accounting coordination for expatriate entrepreneurs.

International Trusts and Complex Assets Declarations.

Advice on creation and management of international trusts.
IRS filings for inheritances, gifts and foreign structures.
Compliance with complex information forms (3520, 3520-A, 8938).
Wealth protection with legal tools adapted to both legislations.

Integral Support for Legal and tax Life in Spain.

Together with Conesa Legal, we offer a 360° vision that combines tax, commercial, labor and corporate law to cover the legal needs of expatriates in all aspects of their life and economic activity in Spain.

Our advisory services for companies and individuals in Barcelona

Why Conesa Legal + Leticia Balcazar is the Ideal Combination?

100% transatlantic approach: experts in Spanish and US law.
Coordinated and strategic solutions, not fragmented.
Direct, human communication without unnecessary jargon.
Designed for expatriates: professionals, entrepreneurs, investors and families.

Discover our tax consultancy in barcelona

Schedule a Consultation with Leticia Balcazar y Conesa Legal

Do you have doubts about your tax situation as a US citizen in Spain?
Do you want to reduce taxes and protect your assets while complying with all the laws?

Contact us to schedule a personalized consultation and take the first step towards tax peace of mind.