Trusted by international buyers in Barcelona for over 20 years.
Owning property in Spain as an American comes with tax obligations on both sides of the Atlantic. Paton & Mayr helps US citizens navigate Spanish property taxes, Modelo 720, FATCA reporting and double taxation — clearly, in English.
You pay taxes in the US and own property in Spain — but you're not sure what you owe where, or whether the Spain-US tax treaty actually protects you.
Spain requires foreign asset declarations above €50,000. Missing the Modelo 720 filing — or filing incorrectly — can trigger severe penalties from the Spanish tax authority.
The IRS requires US persons to report foreign financial accounts and assets. A Spanish property with a mortgage or rental income may trigger FBAR or FATCA reporting you didn't know about.
Renting out your Spanish property generates income taxable in Spain — at different rates depending on whether you're EU-resident or not. Most American owners are paying the wrong rate.
Selling property in Spain as a non-resident triggers a 3% withholding tax and a capital gains liability. Without planning, you may also owe US tax on the same gain.
Spanish inheritance tax applies to property passed to heirs — even if the owner and heirs are American. Combined with US estate tax exposure, the liability can be significant without proper structuring.
«US citizens owning property in Spain face obligations on both sides of the Atlantic. Getting the right advice early is not just about compliance — it is about protecting the value of your investment.»
Step 01
We review your US and Spanish obligations together — property taxes, rental income, capital gains exposure and any reporting requirements — to give you a complete picture of where you stand.
Step 02
We recommend the most efficient legal and tax structure for your situation — whether that means optimising how you hold the property, planning a future sale, or ensuring your estate planning is aligned on both sides.
Step 03
We manage your Spanish tax filings, Modelo 720 declarations and any IRS-related documentation — so you remain compliant without having to navigate two tax systems alone.
What We Cover
ITP, VAT and stamp duty on purchase — calculated correctly and paid on time.
Impuesto sobre el Patrimonio and non-resident income tax filings handled each year.
Spanish CGT on the sale of your property — planned in advance to minimise exposure.
Foreign asset reporting to Spanish tax authorities — filed accurately to avoid heavy penalties.
Yes. Non-residents who own property in Spain are subject to annual non-resident income tax (IRNR) — even if the property is not rented out. The imputed income tax applies to all non-resident owners. If you do rent the property, quarterly declarations are also required.
US citizens must report worldwide income and foreign financial assets to the IRS regardless of where they live. Spanish property held directly in your name is generally not reported on FBAR or FATCA forms, but rental income must be declared, and a property held through a Spanish company may trigger additional reporting obligations. We coordinate with your US tax adviser to keep both sides aligned.
Modelo 720 is a Spanish declaration of foreign assets held by Spanish tax residents — not non-residents. If you are a non-resident owner, you are not required to file it. However, if you spend significant time in Spain and could be considered tax resident, the obligation applies and the penalties for non-filing are severe. We assess your residency position as part of our initial review.
Non-residents pay a flat 19% on the gain (for EU/EEA residents) or 24% (for others, including most Americans). The buyer is required to withhold 3% of the purchase price at notary and pay it to the tax authority on your behalf — this is offset against your final CGT bill. Planning the sale structure in advance can significantly reduce your exposure.
Yes, we work entirely remotely with clients based in the US and worldwide. All documentation is handled digitally, and we act on your behalf in Spain with a Power of Attorney where needed. You will never need to travel to Spain to manage your tax obligations.
Before. The purchase structure — whether you buy in your own name, jointly, or through a company — has significant tax consequences that are very difficult to reverse later. Taking advice before you sign the preliminary contract gives you the most options and avoids costly restructuring down the line.
