Financial planning for Americans in Madrid.

Madrid pulled you in for the role — IBEX-listed corporate, a US multinational HQ, a private equity seat, or a consulting partner promotion. The package is generous. The catch is that your US brokerage is nervous about your Calle Serrano address, your private banker at BBVA wants you in a fondo (every one a PFIC), and almost nobody around you can explain why the Beckham election and Madrid's wealth-tax bonificación together are the most valuable cross-border decision on your desk. We build for Americans on Spanish payroll in Madrid — keeping your 401(k) compounding cleanly back home and your Spanish side correctly filed.

Cross-border financial planning and US investment management for Americans living abroad, typically with $1M+. Most clients have $1M+ in investable assets; we also work with selected households from $500K.

Written and reviewed by Anthony Walsh, Selanis. Last reviewed 2026-06-29.

Key issues

Beckham Law election & 6-month window
Madrid wealth-tax bonificación (vs. solidarity tax)
RSU / PSU sourcing across two payrolls
US brokerage closure on Spanish address
PFICs in BBVA / Santander products
Modelo 720 / 721 reporting

If you took a job in Madrid, the Beckham regime is the single most valuable election available to you — and the window is tight

The Régimen Especial de Impatriados (Art. 93 LIRPF) taxes qualifying new arrivals at a flat 24% on Spanish employment income up to €600,000, generally ignores non-Spanish investment income, and exempts foreign assets from Spanish wealth tax — for up to six years. The 2023 Startups Law extended eligibility to certain remote workers, directors and innovation professionals. You must not have been Spanish tax resident in the prior 5 years, and the election must be filed within 6 months of registering with Spanish Social Security. We see Madrid mobility teams miss the window every month — usually because the local gestor 'will get to it'.

Madrid bonifica wealth tax to zero — but the State's solidarity tax (Impuesto Temporal de Solidaridad) catches it back above €3M

The Comunidad de Madrid applies a 100% bonificación on the Impuesto sobre el Patrimonio. For most Americans relocating from Catalonia, Valencia or the Balearics, this alone is worth €15,000–€80,000+ a year. But the central government's Impuesto Temporal de Solidaridad de las Grandes Fortunas claws back what regions bonifican — at 1.7%–3.5% on net worldwide wealth above ~€3M (with the €700k base exemption stacked). Beckham, where you qualify, exempts foreign assets from both. The interaction between region, state-level solidarity tax and Beckham is the single most under-modelled question we see at the Madrid corporate level.

Your RSUs and performance shares vest in Madrid. Spain wants to tax them at marginal rates. The US already did at vest.

Spain taxes RSU / PSU vesting as employment income — flat 24% under Beckham (up to €600k of Spanish employment income), or marginal IRPF rates up to ~47% under the regular regime. The US has typically already withheld at vest as wages. Without a proper workday sourcing analysis between US and Spanish service periods, a correctly claimed foreign tax credit, and timing of sales relative to bracket and FX, you genuinely pay both. PSU performance multipliers introduce additional sourcing ambiguity that almost no Spanish asesor models on their own.

Schwab, Fidelity and Vanguard are quietly restricting US persons with Spanish residential addresses

Most US custodians have tightened rules for clients with EU addresses. A forced liquidation crystallises an unplanned US tax year — usually right when you needed predictability. Interactive Brokers, Schwab International (for qualifying clients), and a small number of Spain-friendly setups genuinely support an American resident in Madrid. The migration has to be sequenced — ideally before you change your address with the IRS, your custodian, or your employer's payroll.

Your BBVA, Santander or Bankinter private banker will pitch a fondo de inversión or a Unit-Linked policy. For an American, every one is a PFIC.

Spanish fondos de inversión, planes de pensiones, EPSV, PIAS and Unit-Linked policies — the standard private-banking shelf in Madrid — are Passive Foreign Investment Companies for a US person. Form 8621 required for each, default IRS treatment can produce a US tax bill larger than the gain. Most Ireland-domiciled UCITS your banker frames as 'tax-efficient' carry the same problem. Stay US-domiciled, full stop.

Modelo 720 catches every Schwab account, every 401(k), every Vanguard fund — and almost no American files it the first year

If you're Spanish tax resident and any of three buckets — foreign bank accounts, foreign securities (including your IRA, 401(k), Roth, US brokerage), or foreign real estate — exceeds €50,000 at year-end, you must file Modelo 720 by 31 March. Modelo 721 captures foreign crypto. The 2022 EU Court of Justice ruling struck down the original penalty regime, but the filing obligation itself remains. We bring late filers current quietly.

Your Roth IRA is tax-free in the US. Spain doesn't recognise it.

Spain generally treats the Roth as a savings-income account — inside growth potentially taxable each year and distributions taxed on the gain at 19–28%. Whether to draw it before your move year, after, or convert in a final US-resident window is one of the highest-value decisions for any American planning to stay in Madrid long-term. Almost no Madrid gestor or US CPA frames this correctly on their own.

Under the US–Spain treaty, the shape of your 401(k) drawdown changes your lifetime tax bill

Article 20 (post-2019 protocol) generally puts periodic pension distributions in your country of residence — Spain — at IRPF rates that climb past 47%. Lump sums can be taxed by the US. The choice between periodic vs lump-sum, plus the timing of any Roth conversion in your last US-resident year, is the difference between a clean retirement and a permanently leaky one.

Your US Aetna or Cigna usually doesn't follow you. Sanitas, Adeslas and DKV are the real options.

Most US employer plans don't cover routine care in Spain. Beckham holders typically run a private layer (Sanitas, Adeslas, DKV, ASSSA) at €60–€180/month, plus access to the Spanish public system once enrolled. If you're staying long-term, the convenio especial after a year of residency is €60–€157/month. We cost the healthcare line explicitly — usually €4,000–€9,000/year per family.

The 183-day rule is only one of three traps — and 'I'll just travel a lot' rarely works

Spain considers you tax resident if you spend 183+ days in-country, OR your main economic interests are in Spain, OR your spouse and minor children habitually reside in Spain. Many US executives in Madrid assume their travel calendar protects them. It doesn't. We map the actual footprint before Hacienda does.

Frequently asked questions

Do I qualify for the Beckham Law in Madrid?

If you moved to Spain for new employment (or a qualifying remote-work, director or innovation-professional role under the 2023 Startups Law) and you were not Spanish tax resident in the previous 5 years, yes — assuming the election is filed within 6 months of registering with Spanish Social Security. It's transformational: 24% flat on Spanish-source employment income up to €600k, generally no Spanish tax on non-Spanish investment income, and no wealth or solidarity tax on assets held outside Spain, for up to 6 years.

How does Madrid's wealth-tax bonificación actually work for an American?

Madrid applies a 100% bonificación on the regional Impuesto sobre el Patrimonio. But the State-level Impuesto Temporal de Solidaridad de las Grandes Fortunas catches what the region forgives — at 1.7%–3.5% on net worldwide wealth above ~€3M. Beckham, where you qualify, exempts foreign assets from both. The interplay is the single most under-modelled question at the Madrid corporate level.

How are my RSUs and PSUs taxed if I vest while living in Madrid?

Spain taxes the vest as employment income — flat 24% under Beckham (up to €600k), or marginal IRPF up to ~47% under the regular regime. The US has typically already withheld at vest. Without a proper workday sourcing analysis between US and Spanish service periods and a correctly claimed foreign tax credit, you pay both. PSU multipliers add another layer of sourcing ambiguity we model explicitly.

What happens to my Schwab or Fidelity account when I move?

Most US custodians now restrict or close accounts with an EU residential address. Move before they force-liquidate and crystallise an unplanned US tax year. Interactive Brokers, Schwab International (for qualifying clients) and a small number of Spain-friendly setups work. Sequencing matters — usually before you change your address with the IRS.

Should I let BBVA or Santander put me into a fondo or Unit-Linked policy?

Avoid Spanish fondos de inversión, planes de pensiones, EPSV, PIAS and Unit-Linked policies. Each one is a PFIC for a US person, with Form 8621 required and IRS treatment that can produce a US tax bill larger than the gain. Stay US-domiciled in a Spain-friendly custodian.

Do I really have to file Modelo 720?

Yes, if any of your foreign account, foreign-securities, or foreign-real-estate buckets exceeds €50,000 at year-end. That includes your 401(k), IRA, Roth and US brokerage. The 2022 EU Court ruling killed the original penalty regime; the filing itself remains. We bring late filers current quietly.

What about my Roth IRA in Spain?

Spain doesn't recognise the Roth as tax-free. Inside build-up may be treated as savings income year by year; distributions are taxed on the gain at 19–28%. Whether to draw it before your move year, after, or convert in a final US-resident year is one of the highest-value decisions on the table — and almost no Madrid gestor or US CPA frames it correctly alone.

Do you actually file my US or Spanish taxes?

No, deliberately. We coordinate a US CPA and a Madrid asesor fiscal into one strategy, and we design the investment, equity-comp and pension structure around the positions they sign. Keeping tax prep separate from advice keeps everyone independent.

What does engagement cost?

We start with a 45-minute Complimentary Fit Conversation to scope your situation. From there, engagement starts at $3,000 for a focused planning project, with ongoing management on a tiered fee from 1.00% on the first $1M, falling to 0.30% above $10M — same structure as the rest of our practice. No commissions, retrocessions or product revenue from anyone.

Fees

Blueprint $3,000 and Life $8,000 (flat planning fees). Private Wealth Management on a tiered, blended schedule starting at 1.00% on the first $1M and declining to 0.30% above $10M. Fee-only: no commissions, no product payments, no lock-in. All fees

Book a Fit Conversation — Complimentary Fit Conversation (45 min).