US Spain tax treaty: residence and double taxation

October 7, 2026

US Spain tax treaty: key points

The US Spain tax treaty is the Convention signed in Madrid on 22 February 1990, as amended by the Protocol signed in Madrid on 14 January 2013, which has been in force since 27 November 2019.
Spain treats you as a tax resident for the whole calendar year if you spend more than 183 days there, if your main economic interests are there, or, unless you prove otherwise, if your spouse and dependent minor children live there.
If both countries treat you as a resident, article 4(2) decides in this order: permanent home, centre of vital interests, habitual abode, nationality, then agreement between the tax authorities.
The savings clause (art. 1(3)) lets each State tax its residents, and the US its citizens, as if the treaty were not in force. The 2013 Protocol did not change it.
Dividends can be taxed at source at 5% if a company holds at least 10% of the voting shares and at 15% otherwise, while interest and royalties are in general taxable only in the owner’s State of residence.
Spain relieves double taxation with a deduction of the lower of the foreign tax paid and Spain’s average effective rate on that income (art. 80 of the personal income tax law).
US Social Security payments “may be taxed” by the paying State (art. 20(1)(b)), which is not an exclusive right, and the 1986 totalization agreement covers social security contributions and benefits, not income tax.

Two tax systems and one treaty for Americans in Spain

The US Spain tax treaty decides which country may tax which income when a US citizen or green-card holder (a US lawful permanent resident) lives in Spain or owns property there. It does not remove tax: it allocates taxing rights, sets a tie-breaker for dual residents and provides for double-tax relief.

This article states the law as at 6 October 2026. It covers Spanish tax law and the Valencian angle. For US filing and US tax questions, coordinate with your US tax adviser, because we do not give US tax advice.

British readers will find the equivalent rules for their treaty in our UK Spain double taxation guide.

The 2013 Protocol to the US Spain tax treaty has been in force since 27 November 2019, and its withholding rules apply to amounts paid from that date [2].

What the US Spain tax treaty covers

The Spanish text of the Convention is in the BOE publication of the 1990 Convention. The BOE publication of the 2013 Protocol records that it was made in Madrid on 14 January 2013 and entered into force on 27 November 2019. The IRS lists both documents on its page of Spain tax treaty documents.

Article 2 of the Convention covers Spanish personal income tax and corporate income tax, and US federal income taxes, excluding social security contributions. It does not name Spanish wealth tax, which our guide to Spanish wealth tax and taxes on passive income explains.

The Protocol replaced the articles on dividends, interest and royalties and amended, among others, those on capital gains and pensions. Under its article XV(2), the withholding rules apply to amounts paid from 27 November 2019. It did not amend article 4 (residence) or article 1(3) (the savings clause).

Spanish tax residence for Americans

Spanish tax residence comes from Spanish law, not from the treaty. Article 9 of the Spanish personal income tax law (Ley 35/2006) sets three tests, and meeting any one makes you a resident:

Physical presence: you stay in Spain more than 183 days in the calendar year.
Centre of economic interests: the main base of your activities or economic interests is in Spain, directly or indirectly.
Family presumption: your non-separated spouse and dependent minor children habitually live in Spain, which is presumed to make you a resident unless you prove otherwise.

Sporadic absences, such as summers in the US, count towards the 183 days unless you prove tax residence elsewhere. The Spanish Tax Agency (AEAT) leaflet for Spanish tax residents with US income adds that the proof is a certificate of tax residence issued by the other country’s tax authorities, and that residence covers the whole calendar year. A Spanish tax resident is taxed in Spain on worldwide income, subject to the treaty.

Personal income tax is partly ceded to the regions under article 3 of the same law, so the scale that applies to you depends on where you are resident in Spain.

The tie-breaker rule in article 4

A person can be a resident of both countries under domestic law, for example someone treated as a US resident under US law who also meets the Spanish tests. Article 4(2) of the Convention then applies these steps, each one only if the previous one does not decide:

The State where you have a permanent home available or, if you have one in both, the State with which your personal and economic relations are closer (centre of vital interests).
If that cannot be determined, or you have a permanent home in neither State, the State where you habitually live.
If you habitually live in both or in neither, the State of which you are a national.
If you are a national of both or of neither, the tax authorities settle the case by mutual agreement.

Whether you count as a US resident for treaty purposes is for your US adviser. If your facts may point to both countries, contact us before filing a Spanish return.

Applying the tie-breaker in the US Spain tax treaty needs evidence, such as a certificate of tax residence, a lease or deed and records of where your family lives.

The savings clause and US citizens

Paragraph 3 of article 1 is the savings clause. The Spanish text of the Convention reads:

“No obstante las disposiciones del Convenio, excepto las contenidas en el apartado 4, un Estado contratante puede someter a imposición a sus residentes [tal como se definen en el artículo 4 (residencia)], y por razón de ciudadanía puede someter a imposición a sus ciudadanos, como si el Convenio no hubiese entrado en vigor.”

In English: a Contracting State may tax its residents, and by reason of citizenship its citizens, as if the Convention had not entered into force, except as paragraph 4 provides.

We describe this clause and do not advise on it. Paragraph 4 lists provisions it does not affect, including article 24 on double-tax relief, article 25 on non-discrimination and article 26 on the mutual agreement procedure. How the clause works in a US return is for your US adviser.

The Spanish Tax Agency’s US leaflet states that tax borne in the US by a Spanish resident on the basis of citizenship gives no right to the Spanish international double-tax deduction, and that it is for the US to avoid that double taxation.

This is why the US Spain tax treaty does not remove US filing for US citizens who live in Spain.

Withholding tax rates after the 2013 Protocol

The table gives the rules for payments by a company resident in one State to a beneficial owner resident in the other. The Protocol text in the BOE has the full conditions, including the limitation of benefits article.

Income	Treaty rule after the Protocol	Article
Dividends	Source State tax capped at 5% of the gross amount if the beneficial owner is a company holding directly at least 10% of the voting shares, and at 15% in other cases. A 0% rate applies in specific cases, such as a pension fund, subject to conditions.	10(2) to 10(4)
Interest	Taxable only in the State where the beneficial owner is resident. Exceptions include US contingent interest that is not portfolio interest (limited to 10% when the owner is Spanish).	11(1) and 11(2)
Royalties	Taxable only in the State where the beneficial owner is resident.	12(1)

Under the US Spain tax treaty, the source country may tax dividends at no more than 15%, or 5% for a company holding at least 10% of the voting shares [2].

For an individual who lives in Spain and receives dividends from a US company, the limit is therefore 15%. Spanish law taxes dividends paid to non-residents at 19% under article 25(1)(f) of the non-resident income tax law, so the treaty lowers that for a US resident.

Which country taxes what

The table shows what the treaty says for common income types of a Spanish tax resident with US connections. It covers the allocation of taxing rights only, and for US citizens the savings clause means the US may still tax the income. Where official sources do not let us state the Spanish treatment, it says “check with us”.

Income	What the treaty says	Spanish side for a Spanish resident
Salary	Taxable only in the State of residence, unless the work is done in the other State (art. 16(1)), with a short-stay exception (art. 16(2)).	Work done while you live in Spain is work done in Spain: see our digital nomad visa guide for US W-2 employees. Work done in the US: check with us.
Rent from, and gains on, US real estate	May be taxed in the US, where the property is (art. 6(1) and 13(1)).	Spain taxes residents on worldwide income and gives a deduction for the US tax paid (art. 24(1)(a) and art. 80).
Dividends	Source State may tax up to 15%, or 5% for a qualifying company holding (art. 10).	Taxed in Spain, with a deduction up to that limit, according to the Spanish Tax Agency.
Interest	In general taxable only in the State of residence (art. 11).	In general taxed only in Spain, according to the Spanish Tax Agency.
Gains on other assets, such as shares in a US company	Taxable only in the seller’s State of residence (art. 13(6)).	Taxed in Spain, according to the Spanish Tax Agency.
US Social Security payments	May be taxed in the paying State, the US, which is not an exclusive right (art. 20(1)(b)).	Check with us.
Pensions and annuities for past private employment	Taxable only in the State of residence (art. 20(1)(a) and 20(2)).	In general taxed only in Spain, according to the Spanish Tax Agency.
401(k), IRA and Roth IRA payments	Article 20(5), added by the Protocol, deals with income from a pension fund resident in the other State.	Check with us.

For the domestic rules on Spanish dividends paid to people living abroad, see our guide to Spain withholding tax on dividends for non-residents.

US Social Security, retirement accounts and the totalization agreement

Article 20(1)(b) of the Convention says in its Spanish text that Social Security benefits paid by a Contracting State to a resident of the other State, or to a US citizen, “pueden someterse a imposición en el Estado mencionado en primer lugar” (may be taxed in the first-mentioned State).

The wording is “may be taxed”, so the right of the paying State is not exclusive. The Spanish Tax Agency’s US leaflet says such payments may also be taxed in the US, and that a Spanish resident can claim the Spanish deduction if the US taxed them on a basis other than citizenship. How a given benefit is taxed on your Spanish return is a point to confirm: please contact us.

We do not state in general terms how Spain taxes withdrawals from a 401(k), an IRA or a Roth IRA. Contact us with the type of plan and your date of arrival in Spain, and we will confirm your case with a cross-border specialist.

The totalization agreement is a separate instrument. The SSA text of the agreement records that it was signed in Madrid on 30 September 1986 and entered into force on 1 April 1988. The SSA pamphlet on Spain says it covers the Spanish General System and special systems and lets contribution periods in both countries count towards benefits.

The US-Spain totalization agreement was signed on 30 September 1986 and has been in force since 1 April 1988 [8].

It does not decide income tax, and article 2 of the income tax Convention excludes social security contributions. For a contribution record or pension claim, contact the firm.

How Spain relieves double taxation

Under article 24(1)(a) of the Convention, Spain relieves double taxation in line with Spanish law, by allowing a deduction equal to the US tax actually paid on income the US may tax on a basis other than citizenship, up to the part of the Spanish tax that corresponds to US income. The Spanish rule is in article 80 of the personal income tax law, which deducts the lower of two amounts.

The two amounts are the tax actually paid abroad on that income, under a tax identical or similar to Spanish personal income tax, and the average effective rate of Spanish tax applied to the part of the taxable base taxed abroad.

As seen above, the deduction does not cover US tax charged only because of citizenship. For a calculation on your own income, contact us.

Relief under the US Spain tax treaty is claimed in the annual Spanish return, where the US tax paid is entered as a deduction for international double taxation [4].

If you are still planning the move, our guide on moving to Spain after 2 July explains how your arrival date affects Spanish tax residence in the first year.

Certificate of Spanish tax residence

The AEAT issues a certificate of tax residence in Spain for treaty purposes. For treaty countries, its page on what the certificate certifies says the Spanish authorities certify that you are a resident within the meaning of the treaty, in Spanish and English, if the AEAT data show your Spanish residence.

The AEAT page on requesting the certificate describes the steps:

Open the request in the electronic office under “Todas las gestiones”, “Certificados”, “Censales”, and identify yourself with Cl@ve, an electronic certificate or the electronic DNI.
Complete the form, validate it, then sign and send. Where possible the certificate is issued immediately.
Alternatively, request it at an AEAT office with form 01 after booking an appointment.
If it cannot be issued at once, you can file supporting documents on your Spanish residence to reopen the file.

This certificate proves Spanish residence only. If you are unsure which country will treat you as a resident, contact us first.

Spanish property, the Beckham regime and reporting for Americans

Owning Spanish property while living in the US

Under article 6(1) of the Convention, rent from property in Spain may be taxed in Spain, and under article 13(1) so may gains on selling it. Spanish law sets the rates in article 25 of the non-resident income tax law: 24% in general (19% for EU or EEA residents with effective exchange of tax information, which excludes the US), 19% on gains from transfers of assets, and a 3% retention by the buyer on sales of Spanish real estate.

Our guides: selling property in Spain as a non-resident, buying a house in Valencia as a non-resident, using US investment funds to buy property and owning a US LLC while living in Spain.

The Beckham regime

Article 93 of the personal income tax law lets people who become Spanish tax residents because they move to Spain opt to be taxed under the non-resident income tax rules, in the year of the move and the five following tax years. One condition is not having been resident in Spain during the five tax periods before the move. Our Beckham Law guide covers eligibility, and how the regime interacts with this treaty and with US tax is a case-by-case question: please contact us.

Modelo 720 and Modelo 721

The Spanish Tax Agency’s US leaflet says Spanish residents report assets abroad on Modelo 720 in three categories: accounts, securities and insurance, and real estate. A category need not be reported if it does not exceed €50,000, the form is filed from 1 January to 31 March of the following year, and a later filing is needed only if a category has risen by more than €20,000.

Virtual currencies held abroad with custodians that safeguard private keys for third parties go on Modelo 721, as the AEAT FAQ on Modelo 721 explains. Penalties for missing or late returns are set by the General Tax Law (Ley 58/2003). Our Modelo 720 guide has more detail, and for US accounts, US property or crypto on a US exchange you can contact us to confirm what you must report.

Speak to Delaguía y Luzón about your Spanish tax position

Your position depends on your residence, income mix and US status. We can review your Spanish tax residence, the treaty position and the Spanish filings that follow, working alongside your US adviser on the US side. Our Valencia office advises people settling in the Comunitat Valenciana.

Contact Félix Delaguía, or use our contact page. You can also read about our tax law and accounting practice.

Email: felix.delaguia@delaguialuzon.com
Phone: +34 963 74 16 57
Office: Avinguda Regne de València, 6, 1º-2º, 46005 Valencia

FAQ: US Spain tax treaty

Is the US Spain tax treaty in force and what did the 2013 Protocol change?

Yes. The 1990 Convention is in force as amended by the Protocol of 27 November 2019, which changed the rules on dividends, interest and royalties but not the article 4 tie-breaker or the article 1(3) savings clause.

When am I a Spanish tax resident as an American?

You are resident for the full calendar year if you stay in Spain more than 183 days, if your main economic interests are there, or, unless you prove otherwise, if your spouse and dependent minor children live there.

What happens if both Spain and the US treat me as a resident?

Article 4(2) applies these tests in order: permanent home, centre of vital interests, habitual abode, nationality, then mutual agreement. Contact us if your facts point to both countries.

Does the treaty stop the US taxing me as a US citizen?

No. The savings clause in article 1(3) allows the US to tax its citizens as if the Convention were not in force, subject to article 1(4). The Spanish Tax Agency says US tax borne because of citizenship gives no Spanish deduction.

Does the totalization agreement make my US Social Security tax-free in Spain?

No. The agreement coordinates social security coverage, contributions and benefits. Under article 20(1)(b) of the income tax Convention the US may tax them without excluding Spain, so contact us to confirm your case.

Do I have to report my US accounts and property in Spain?

If you are a Spanish tax resident, Modelo 720 applies when a category of assets abroad exceeds €50,000, and Modelo 721 covers certain virtual currencies. Contact us to check which obligations apply to your holdings.

Does the US Spain tax treaty cover Spanish wealth tax?

No. Article 2 of the US Spain tax treaty covers Spanish personal and corporate income tax and US federal income taxes, but does not name wealth tax.

How do I prove I am resident in Spain for the treaty?

Request a certificate of tax residence from the AEAT electronic office, or at an AEAT office with form 01. It certifies residence within the meaning of the treaty.

Are US dividends taxed twice?

The US may tax dividends paid to a Spanish resident at up to 15%. Spain taxes them as savings income and gives a deduction for that US tax, according to the AEAT.

Does the US Spain tax treaty protect my 401(k) or IRA?

Article 20(5) of the US Spain tax treaty deals with income from pension funds, but the Spanish treatment of withdrawals depends on the plan. Contact us with the type of plan and your date of arrival in Spain.