Ultimate Guide for Americans Moving to Spain

A move to Spain from the USA can be a thrilling one, but it requires careful planning and preparation. With its rich heritage, affordable living, and warm Mediterranean weather, Spain is a dreamland for many Americans. In this guide, everything an American will ever need to know about moving to Spain from the USA will be discussed. From visas and medical care to living expenses and more, we’ll cover all the essential details to help make your transition as smooth as possible.

1. Requirements for Residence and Visas

A residence permit will be required for staying in Spain for over 90 days for Americans planning a long-term move. Understanding the visa requirements for Americans moving to Spain is essential for a smooth transition. Below is a breakdown of the most in-demand visas for U.S. citizens:

• Non-Lucrative Visa: Most ideal for pensioners and passive earners. In 2025, present €28,800 in annual earnings in terms of pensions, investments, and annuities.

• Digital Nomad Visa: Most ideal for working remotely. Present your employment certificate, freelance work, and minimum earning requirement.

• Work Visa: Granted for employment with a Spanish entity, but it remains valid only as long as the job contract is active. Once the employment ends, so does the visa.

• Student Visa: Issued for studying in Spain, but its validity is tied to the duration of the academic program. When studies conclude, the visa expires.

• Golden Visa: The Golden Visa, which allows for residence by investment through the purchase of property worth €500,000 or more, will no longer be available as of April 2025. For those seeking an alternative, the Non-Lucrative Visa is an ideal option, especially for retirees or those with passive income, allowing you to reside in Spain without the need to work.

Once in Spain for 5 years, one can apply for a residence permit for life. Don’t forget to register your empdadronamiento (residing locally) when in Spain, an important move for accessing public services and maintaining your legality.

2. Comparison of Living Expenses

Perhaps one of the most exciting things about moving to Spain for Americans is Spain’s affordable living expenses. How Spain compares with big city life in America can be seen below:

In 2024, Spain's living costs are about 40% lower than in the U.S., with the biggest savings found in rental prices and property costs. Among the best cities for Americans in Spain, Alicante and Málaga stand out as budget-friendly choices for expats looking for a high quality of life at a reasonable cost.

3. Taxation for US Expats in Spain

As an American, you must pay taxes on your worldwide income, but Spain and the U.S. have a double taxation agreement, ensuring that your earnings will not be taxed twice for the same income. However, there are several key points to keep in mind:

• Foreign Earned Income Exclusion (FEIE): This provision allows you to exclude a portion of your earnings—up to $120,000—in the U.S. from taxation if you meet certain criteria.

• Foreign Tax Credit: This helps reduce your taxes in the U.S. based on the taxes you've paid in Spain, allowing you to avoid double taxation on the same income.

In addition, foreigners are considered tax residents in Spain if they reside in the country for more than 183 days in a calendar year.

• Public vs. Private Pensions: According to the Double Taxation Agreements (DTA) between the U.S. and Spain, public pensions are typically taxed in the country where the income is generated. In the case of the U.S. and Spain, private pensions are taxed in Spain, while public pensions are taxed in the U.S.

• Regional Tax Rates: It’s important to note that each autonomous community in Spain can set its own tax rates, meaning your tax liabilities can vary depending on where you live within the country.

Taxation for US expats in Spain can be complex, as it may vary depending on the state you reside in, with each region having different local tax laws. As an American, you are required to pay taxes on your worldwide income, but Spain and the U.S. have a double taxation agreement to prevent you from being taxed twice on the same income. If you purchase property in Spain, you may encounter additional taxes such as property taxes, capital gains taxes, or local taxes on rental income.

Foreigners are considered tax residents in Spain if they reside in the country for more than 183 days in a calendar year. Each autonomous community can set its own tax rates, and public pensions are typically taxed in the country where the income is generated, while private pensions are taxed in Spain. It’s important to familiarize yourself with these regulations and consider consulting a tax professional to understand how they apply to your specific situation. For more details on maintaining property in Spain and the associated taxes, check out our guide on Costs to Maintain a House in Spain.

4. Rent or Buy?

Renting property in Spain or purchasing one depends on your long-term residency options in Spain and personal plans. Purchasing a property in Spain for an American is no problem, and Americans have no restrictions.

• Renting: Best for those with a desire for freedom. Rental payments in Spain are relatively cheap, and less in relation to America.

• Buying: Best for long-term residents and even those retiring in Spain. The prices of property are relatively cheap in Spain, and even U.S. citizens have the ability to get a mortgage in Spanish. Besides, Spain is a tourism country, which makes real estate a very lucrative investment, taking into consideration even the rental income alone. By managing rentals correctly, you will be able to increase your margins of profit much higher, as high demand from tourists can provide a strong ROI.

5. Spanish Traffic

In case of driving in Spain as an American, here’s a quick rundown:

• Short-Term Use: For 6 months, your driving license in the U.S. can be utilized, but an IDP (International Driving Permit) must be obtained.

• Long-Term Residents: Once 6 months have elapsed, a Spanish driving license must be acquired, and for that, a theoretical and driving test must be taken, in most cases following attendance at a driving school.

6. Healthcare in Spain

The Spanish healthcare system is one of the best in the world; it offers total coverage and health benefits to everybody. Public healthcare is available for residents of Spain who have worked in the country, with spouses and dependents immediately covered. Private healthcare is equally very affordable, costing about $67 a month.

One of the major reasons that make Spain's healthcare system very attractive is because it is reasonably priced and easy to access. It offers state-of-the-art medical technology, and several of its healthcare institutions have gained accreditation. The country also has a highly qualified and well-trained team of medical professionals who ensure that quality services are offered to expatriates. This factor is in extreme contrast with the reportedly expensive, complicated system in the U.S., which makes Spain a very appealing choice for those who require access to quality, reasonably priced medical care.

7. Schools for Kids

Movers with families will discover a large number of first-class international schools in Spain with curriculums in English in most Spanish cities, including in Madrid, Barcelona, and Valencia, with high-rated schools for expats with families in tow.

8. Bringing Pets

Going to move your pet with you? Here’s what’s required:

• The pet must have a microchip and rabies vaccination.

• An EU pet passport, or an endorsed USDA health certificate, must be obtained.

• Pets under 12 weeks cannot enter Spain.

9. Best Cities for Americans in Spain

The diversity of Spain’s cities will have something for everyone’s preference for living:

• Barcelona: Colorful culture, sea, and thriving expat community.

• Madrid: Bustling, cosmopolitan, and full of first-class amenities.

• Malaga: Inexpensive, warm, and ideal for pensioners.

• Valencia: A mix of modern and traditional, with a low living cost.

These are some of the best places to buy property in Spain, offering a range of lifestyles to suit different preferences.

10. Spain Living: What’s Good, What’s Bad

Good:

• The cost of living is cheap.

• Good-quality medical care.

• A rich heritage and rich culture.

• A warm, pretty environment.

Not so good:

• The bureaucracy can try your patience.

• Language barrier (though many speak English in Spain).

• Adjusting to a less stressful pace of life.

Spain offers an unrivaled quality of life, with easy access to all basic services and activities. From the efficient public healthcare system to the vast cultural experiences in major cities, to beautiful natural landscapes just a short drive away, Spain makes it simple for expats to enjoy a comfortable and fulfilling lifestyle.

Conclusion

A life-changing move for an American, living in Spain has many benefits. With its high level of living and low cost of living, Spain is a perfect country for expats. Regardless of your motivation, retiring, working remotely, or beginning a new life with your family, use this handbook with confidence.

Are you prepared to make your move? Start planning and living life in Spain!