If you’re a self-employed individual from the United States living in Spain under a digital nomad visa, there are several important considerations you need to keep in mind when it comes to taxes. As an autónomo (the Spanish term for self-employed individual), you are responsible for paying taxes in both the United States and Spain. Here’s a guide to help you navigate the tax obligations of being a USA autónomo in Spain under a digital nomad visa.

First and foremost, it’s important to understand that as a US citizen or resident alien (Green Card holder) you are required to report your worldwide income to the Internal Revenue Service (IRS) regardless of where you live. This means that you need to file a US tax return each year, reporting your income from all sources, including any income earned in Spain.

In Spain, as a self-employed individual, you will need to register as an autónomo with the Spanish tax authorities. This will involve obtaining a tax identification number (NIF) and registering for the Spanish social security system. As an autónomo, you will be required to pay both income tax and social security contributions on your earnings in Spain.

In terms of income tax, self-employed individuals in Spain are subject to a progressive tax rate that ranges from 19% to 47%. You will need to file a quarterly tax return (Modelo 303) and an annual tax return (Modelo 100) with the Spanish tax authorities. It’s important to keep detailed records of your income and expenses to ensure accurate reporting.

In terms of social security contributions, as an autónomo you will be responsible for paying both the employee and employer portions of social security contributions. The exact amount you will need to pay will depend on your income level and the specific social security regime you are enrolled in.

It’s worth noting that Spain has a tax treaty with the United States, which helps prevent double taxation on income earned in both countries. Under the treaty, you may be able to claim a foreign tax credit or deduction on your US tax return for any taxes paid in Spain. However, it’s important to consult with a tax professional to ensure you are taking advantage of all available tax benefits and properly complying with the tax laws of both countries.

Overall, being a USA autónomo in Spain under a digital nomad visa can be a rewarding experience, but it’s important to stay on top of your tax obligations to avoid any potential issues with the tax authorities in either country. By staying informed and seeking professional advice when needed, you can ensure that you are meeting your tax obligations and enjoying your time as a digital nomad in Spain.

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