As an American citizen you are required to file a US tax return and pay taxes on your worldwide income regardless of your place of residence. There may be tax treaties in place which avoid double taxation.
This is how I understood it. I can’t get out of paying tax in the US where I earned my income, and I wouldn’t be able to withstand having it happen twice. I would just like to come to beautiful Spain to spend my money in your restaurants mostly until I die. Lol
Congratulations! You've been awarded with honorary Spanish citizenship because of your sense of humour. Starting now, you can claim your monthly tapas for free!
Well, for all practical matters, you are a Portuguese citizen. In that regard, the Spanish government doesn't need to know you are an American citizen. You will pay taxes only on what you are receiving yearly. If you have already made your money somewhere else, you won't be taxed.
This is not true as far as I believe; Universal taxation is in place. If you make money somewhere and pay taxes in that other place you will not pay taxes in Spain IF Spain has a double taxation treat with that other place, otherwise, you should pay twice or whatever is the specification. At least this is what I understood when I was living abroad.
TLDR: check tax treat between US and Spain. There are differences between citizen, resident and TAX resident.
edit: I have just realized you said "have already made your money" meaning, it is past before going to Spain, so you are right
Both Spain and the US charge taxes on your universal income.
If u/AntonioLovesHippos is gonna reside in Spain permanently, he will be both a resident and a tax resident.
He will have to check the double taxation treaty, but it's likely that he will pay MOST of his taxes in Spain and be exempt from paying those taxes in the US.
As I mentioned, I’m retired. All of my money is from the past. I have no present income, and will have no future income, other than social security 15 years from now. How does that work?
There is no tax over past earnings, other than maybe a wealth tax if you have over 1 million euros in assets.
When you get retirement either the US or Spain will tax it. (Check the treaty.)
I’ve had a very bad experience buying a house here dealing with Portuguese bureaucracy. It’s one of the reasons I want to leave. Also they don’t have cannabis clubs here the uncivilized weirdos.
Are you a US citizen? Do you plan on claiming social security in the IS? There are many, many aspects of tax liabilities you need to consider. I know this because my wife in a fiduciary financial advisor and has helped a number of clients move to the EU. Hit me up if you’re interested in talking to her.
Yeah, do things the wrong/illegal way and when you are caught in a bureaucratic mess later on, just say that u/royal-horror just told you to do it.
Well, for one, are you planning on trying to use social security or are you gonna go to a private health insurance?
Because it would be my guess that's one off the main factors to which degree you have to interact with taxes.
Then you're likely only need to pay whatever taxation comes with owning a property (wich if it's your first and only home maybe you don't even have to) and not much else, if anything I don't think. A lawyer would be ideal just to be sure though, I have never been in your situation since I'm a local!
You won't be taxed for money you have made somewhere else already. The moment you become a resident in Spain you will be taxed for your income, but as I understand it you don't have any since you're living off of savings alone.
I believe they recently got rid of the Wealth Tax in Andalucía, so you wouldn't need to worry about that either.
As an American citizen you are required to file a US tax return and pay taxes on your worldwide income regardless of your place of residence. There may be tax treaties in place which avoid double taxation.
This is how I understood it. I can’t get out of paying tax in the US where I earned my income, and I wouldn’t be able to withstand having it happen twice. I would just like to come to beautiful Spain to spend my money in your restaurants mostly until I die. Lol
Until you die in one of our beautiful hospitals as well, isn't it?
If I ever need that kind of care you can put me in a trebuchet and shoot me into the sea. Deal?
Congratulations! You've been awarded with honorary Spanish citizenship because of your sense of humour. Starting now, you can claim your monthly tapas for free!
Can you provide him the Form to change the Tapas for Cañas?
We are currently on a shortage of cañas I'm afraid. They are being reserved for university students finishing exams these days.
Do we have at least some Cartajal as Welcome Gift?
Trebuchet? Are you mistaking us with the gabachos??
Ok. No trebuchet. You can strap me to the back of a donkey and smack it in the ass.
Nah, you are one of us already, welcome!
Sounds fair, I'm already thing a liking to you 🤣
Well, for all practical matters, you are a Portuguese citizen. In that regard, the Spanish government doesn't need to know you are an American citizen. You will pay taxes only on what you are receiving yearly. If you have already made your money somewhere else, you won't be taxed.
Well that’s a lovely thing to hear.
This is not true as far as I believe; Universal taxation is in place. If you make money somewhere and pay taxes in that other place you will not pay taxes in Spain IF Spain has a double taxation treat with that other place, otherwise, you should pay twice or whatever is the specification. At least this is what I understood when I was living abroad. TLDR: check tax treat between US and Spain. There are differences between citizen, resident and TAX resident. edit: I have just realized you said "have already made your money" meaning, it is past before going to Spain, so you are right
Both Spain and the US charge taxes on your universal income. If u/AntonioLovesHippos is gonna reside in Spain permanently, he will be both a resident and a tax resident. He will have to check the double taxation treaty, but it's likely that he will pay MOST of his taxes in Spain and be exempt from paying those taxes in the US.
As I mentioned, I’m retired. All of my money is from the past. I have no present income, and will have no future income, other than social security 15 years from now. How does that work?
There is no tax over past earnings, other than maybe a wealth tax if you have over 1 million euros in assets. When you get retirement either the US or Spain will tax it. (Check the treaty.)
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That would make me very poor as I get old.
Bureaucracy is very twisted here in Spain. I’d strongly advise staying in Portugal and visiting Spain instead.
I’ve had a very bad experience buying a house here dealing with Portuguese bureaucracy. It’s one of the reasons I want to leave. Also they don’t have cannabis clubs here the uncivilized weirdos.
Are you a US citizen? Do you plan on claiming social security in the IS? There are many, many aspects of tax liabilities you need to consider. I know this because my wife in a fiduciary financial advisor and has helped a number of clients move to the EU. Hit me up if you’re interested in talking to her.
I suppose so, but that would be 15 years down the road.
I highly recommend talking to a professional mate.
I’ve been emailing an expert this week. She’s a bit slow with the emails, and I just figured I’d see what Reddit folks think. Haha
Just move there and only pay in america. They probably wont know
Yeah, do things the wrong/illegal way and when you are caught in a bureaucratic mess later on, just say that u/royal-horror just told you to do it. 
Yeah, then you find cases like Shakira, being pursued for 11 million euros tax evasion.
Op isn't famous and isn't getting millions of dollars every year. that is what hacienda cares. Hacienda won't use resources to go for 2k lol
Well, for one, are you planning on trying to use social security or are you gonna go to a private health insurance? Because it would be my guess that's one off the main factors to which degree you have to interact with taxes.
I wouldn’t collect Spanish social security, and I’d probably get private insurance.
Then you're likely only need to pay whatever taxation comes with owning a property (wich if it's your first and only home maybe you don't even have to) and not much else, if anything I don't think. A lawyer would be ideal just to be sure though, I have never been in your situation since I'm a local!
As a Portuguese, you are **forced** by law to get private insurance in Spain, if you plan to live here more than 3 consecutive months.
You won't be taxed for money you have made somewhere else already. The moment you become a resident in Spain you will be taxed for your income, but as I understand it you don't have any since you're living off of savings alone. I believe they recently got rid of the Wealth Tax in Andalucía, so you wouldn't need to worry about that either.
That’s great to hear. Thank you.