Financial Planning Expert for American Expats in Spain

Fee-only means we are paid exclusively by our clients. No commissions, no referral fees, no product kickbacks. When we recommend an investment or an insurance product, it is because it suits you, not because we earn anything from it.

Fiduciary means we are legally required to act in your best interest at all times, not simply to recommend products that are "suitable." Together, fee-only and fiduciary is the highest standard of client protection available in financial advice. Victor Gersten holds the CFP® designation and is an IRS Enrolled Agent, and both carry fiduciary and ethical obligations.

The Foreign Earned Income Exclusion (FEIE) lets qualifying expats exclude up to $132,900 of foreign earned income (the 2026 limit) from US taxation entirely. It applies only to earned income, such as wages and self-employment income, and not to passive income like dividends or IRA distributions.

The Foreign Tax Credit (FTC) reduces your US tax bill dollar for dollar by the income taxes you have already paid to Spain. Unlike the FEIE, it can apply to passive income, and it is often the better option for retirees and for anyone with investment income. You cannot claim both on the same income, so choosing between them requires a careful look at your specific situation.

It depends on whether you plan to return to the US. Part A is generally premium-free and worth keeping, since cancelling it requires repaying benefits to Social Security. Part B costs $202.90 per month for most people (the 2026 standard premium) and provides virtually no benefit while you live abroad.

If you are relocating permanently, cancelling Part B and replacing it with Spanish private health insurance (often cheaper and comparable in quality) can make financial sense. That said, if you return to the US later, you face a 10% late-enrollment penalty for every 12-month period you went without Part B, and that penalty lasts for as long as you have Part B. This is a decision that deserves professional advice before you act.

Yes, with some important caveats. Some US brokerages close accounts once they learn you are no longer a US resident, so it is important to work with an expat-friendly custodian such as Charles Schwab before you move. IRAs and 401(k)s are generally fine to keep, though distributions will have US and possibly Spanish tax implications.

You must also report foreign accounts to the US government (the FBAR, FinCEN Form 114, if your balances exceed $10,000, and FATCA Form 8938 above certain thresholds). Failing to file these reports carries severe penalties, even when no tax is owed.

Yes. The US-Spain income tax treaty (1990, with later protocols) and a separate Totalization Agreement on Social Security both exist to prevent double taxation. The income tax treaty sets out which country has primary taxing rights over each category of income (pensions, dividends, royalties, capital gains), so the same dollar is not taxed in full by both countries.

The Totalization Agreement keeps self-employed Americans, and those working in Spain for US employers, from paying into both Social Security systems at the same time. Applying these agreements correctly, especially for retirees drawing Social Security and investment income, is one of the most valuable things a cross-border advisor does.