How do Americans live abroad and keep their U.S. income?
Americans can live abroad while keeping their U.S. income by securing the appropriate visa that allows them to reside in a foreign country without engaging in local employment. For those interested in Spain, options like the Non-Lucrative Visa or the Digital Nomad Visa enable Americans to maintain their income streams from the U.S. while enjoying life in Europe.
Eligibility Requirements
To live in Spain without local employment, Americans can explore the Non-Lucrative Visa or the Digital Nomad Visa. The Spain visa for retirees and non-workers is particularly suitable for those who can demonstrate financial independence through passive income sources such as pensions, dividends, or savings. To qualify, applicants must show a minimum monthly income of approximately $2,500, which increases by about $600 for each additional family member.
On the other hand, the Digital Nomad Visa is perfect for remote workers who want to continue working for U.S.-based companies. Applicants need to prove employment with a company outside Spain, with earnings surpassing a certain threshold, typically around $3,000 per month, though this may vary. Both visas require comprehensive health insurance coverage and a clean criminal record.
Application Process
Applying for either visa involves gathering necessary documents, such as proof of income, health insurance, and a clean criminal background check. For the Non-Lucrative Visa, applicants must submit their application to the Spanish consulate in their jurisdiction and attend an interview. The process typically takes a few months, so it’s best to apply well in advance of your intended move.
The Digital Nomad Visa process involves submitting an application to the Spanish consulate or embassy along with proof of remote employment and income. After approval, travelers must register with the local municipality in Spain and obtain a Foreigner Identity Number (NIE) upon arrival.
Managing Finances While Abroad
Maintaining U.S. income while living abroad involves managing bank accounts, tax obligations, and currency exchanges effectively. It’s crucial to maintain a U.S. bank account for direct deposits and consider opening a Spanish account for day-to-day expenses. Many expats use international money transfer services to manage currency exchange and minimize fees.
American expats are still subject to U.S. tax laws, which means they must file U.S. taxes annually. However, they can take advantage of tax exemptions such as the Foreign Earned Income Exclusion (FEIE) or foreign tax credits to avoid double taxation. Consulting a tax professional familiar with expat tax rules is advisable.
Healthcare and Insurance
Having comprehensive health insurance is a requirement for obtaining both the Non-Lucrative and Digital Nomad Visas. Many Americans opt for international health insurance plans that provide coverage both in Spain and worldwide. Once you become a resident of Spain, you may also qualify for the public healthcare system, which offers high-quality services.
Comparison with Other Visas
While the Non-Lucrative Visa is ideal for retirees and those with sufficient passive income, the Work remotely from Spain visa is designed for remote workers employed by companies outside of Spain. Each visa has distinct financial requirements and application processes, so understanding the nuances is key to selecting the right option.
For instance, if you plan to work remotely and maintain your U.S. income, the Digital Nomad Visa may be more suitable, as it specifically accommodates remote work. In contrast, the Non-Lucrative Visa is designed for those who do not intend to work, even remotely, while in Spain.
Cultural and Social Integration
Living abroad offers the chance to experience a new culture and lifestyle. Americans in Spain can join expat communities and social groups to ease the transition. Learning the Spanish language, even at a basic level, can enhance the living experience and make integration smoother. Many areas in Spain, particularly in cities like Madrid and Barcelona, have thriving expat communities and offer plenty of English-speaking services, making it easier for newcomers to settle in.
For more details, check out our comprehensive guide – Living in Spain as an Expat – The Complete How To.
Got questions about living in Spain? Get in touch or chat with us on Zoom to find the best visa route for your move.
