2025 US-Spain Cross Border Tax Planning Update Part I with Carlos Gimeno

The Essential Tax Podcast with Mishkin Santa, Episode 29In this episode of The Essential Tax Podcast, Mishkin Santa speaks with International Tax Lawyer, Carlos Gimeno.The rules for tax residency in Spain, including the importance of understanding the 183-day rule and the concept of sporadic absences. He highlights the tax implications for US citizens moving to Spain, such as the necessity to tax worldwide income once they become tax residents. Carlos explains the Beckham Law, a special tax regime aimed at attracting foreign talent and investment, which offers significant tax benefits under specific conditions. Other discussed topics include inheritance and gift tax, the impacts of having US business entities like S corporations and LLCs in Spain, and available visa options such as Digital Nomad and Entrepreneurship Visas. The importance of professional tax planning to ensure compliance and optimize tax liabilities is emphasized throughout the discussion.Tune in for these key takeaways: * The basics of Spanish tax residency addressing concerts for U.S. persons considering relocation to Spain * Spain’s progressive tax rates on income, highlighting the disparities across autonomous regions, which influence tax rates significantly * Spain’s gift and inheritance tax, which can be particularly burdensome due to their high rates and variability across regions * Visa opportunities and challenges for relocating U.S. persons to live and work * The advantages and challenges of the Beckham Law — what you need to know * How Spain treats U.S.-based businesses and advice to reevaluate corporate structures to ensure optimal tax efficiency when transitioning to life and work in Spain * Anticipated changes to Spanish tax practices, in how Spain’s government such as potential restrictions on foreign property purchasesLearn more about Carlos Gimeno: * Connect with Carlos on LinkedIn: http://www.linkedin.com/in/carlos-gimeno-masia * Visit Carlos’ website: http://www.gimenomasia.comFurther resources: * Digital Nomad Visa (Spain): https://www.exteriores.gob.es/Consulados/londres/en/ServiciosConsulares/Paginas/Consular/Digital-Nomad-Visa.aspx * Entrepreneur Visa (Spain): https://www.exteriores.gob.es/Consulados/londres/en/ServiciosConsulares/Paginas/Consular/Visado-para-emprendedor.aspx * Self Employed Work Visa (Spain): https://www.exteriores.gob.es/Consulados/londres/en/ServiciosConsulares/Paginas/Consular/Visado-de-trabajo-por-cuenta-propia.aspx * Beckham Law (Spain): https://en.wikipedia.org/wiki/Beckham_law * US-Spain Income Tax Treaty: https://www.irs.gov/businesses/international-businesses/spain-tax-treaty-documents * US-Spain Totalization Agreement: https://www.ssa.gov/international/Agreement_Pamphlets/spain.html***********************************About The Essential Tax Podcast:In each episode of The Essential Tax Podcast, Mishkin Santa takes on the complex world of tax — all the jargon, acronyms, and stuff that make your eyes glaze over, and explains it in an impactful way to understand the complex and unknown areas.Watch or listen to more episodes of The Essential Tax Podcast: * https://www.youtube.com/@TheWolfGroupPC * Apple: https://podcasts.apple.com/us/podcast/the-essential-tax-podcast/id1754660944 * Spotify: https://open.spotify.com/show/2beZfOpwfBlBgWHlNelAOfConnect and learn more from your host, Mishkin Santa: * Connect with Mishkin on LinkedIn: https://www.linkedin.com/in/msanta * Follow The Wolf Group, P.C. on LinkedIn: https://www.linkedin.com/company/the-wolf-group-pc * Read Mishkin’s bio on Wolf Group, P.C.’s website: https://thewolfgroup.com/our-people/mishkin-santa