Financial planning for Americans retired (or retiring) on the Costa del Sol.

Most American couples we meet here came to slow down. A villa above Puerto Banús or an apartment in Estepona, a Non-Lucrative Visa, golf in the morning, grandkids visiting in summer, the 401(k) and Social Security funding the dream in euros. Andalucía is one of the friendliest regions in Spain for an American — wealth tax effectively zero, inheritance tax close to zero for direct descendants. But there is still no US–Spain estate tax treaty, your Roth is still taxed here, and Medicare doesn't follow you. We turn the lifestyle into a plan that holds — and protects what your kids actually inherit.

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

Passive income & sustainable drawdown
Roth IRA taxed by Spain
No US–Spain estate treaty
Medicare gap in Spain
US brokerage closure risk
EUR/USD on USD income

You're not building wealth anymore. You're spending it. That's a different skill — and most advisors don't know it.

Accumulation rewards being fully invested. Retirement rewards sequencing. Drawing $120k–$220k a year in euros from a USD portfolio while RMDs run, Social Security ticks in, and EUR/USD swings 5–15% is a fundamentally different game from saving into a 401(k). We build a real cashflow plan in EUR with a USD engine behind it — bucket strategy, RMD ladder, Social Security claim age, and a private bond floor sized to your actual life. The dream stays the dream because the cash never wobbles.

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

Spain generally treats the Roth as a savings-income account — inside build-up potentially taxable each year, distributions taxed on the gain at 19–28%. The most counter-intuitive tax fact in your retirement. Whether to draw it down before you move, after, or convert in your final US-resident year is one of the biggest decisions on the table — and almost no Spanish gestor or US CPA frames it correctly alone.

Under the US–Spain treaty, the shape of your IRA drawdown changes the 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% marginal. Lump sums can be taxed by the US. RMDs at 73 do not pause because you live in Marbella. Periodic vs lump-sum, Roth conversion timing in your final US-resident years, and proper foreign tax credit claims are usually the difference between a clean retirement and a permanently leaky one.

Andalucía is one of the most generous regions in Spain for inheritance — but there's still no estate treaty with the US

Direct descendants in Andalucía pay close to zero on inheritance after the 99% regional bonificación. That's the good news. The hard news: there is no estate or gift tax treaty between the US and Spain. The US estate tax (up to 40% above the exemption) and Spanish ISD can both apply to the same death, with only a unilateral US foreign tax credit to soften it. For couples with $3M+ where one spouse is a non-US citizen, a US revocable trust drafted in Atlanta usually doesn't coordinate with Spanish succession law. We design around the gap before either spouse passes — not after.

Andalucía bonificó the wealth tax to zero — but the Solidarity Tax catches you above €3M

Andalucía applies a 100% bonificación on the wealth tax — effectively zero. That's why so many Americans choose Marbella, Estepona, Sotogrande, Málaga, Nerja over Catalonia or Valencia. But the national Solidarity Tax on Large Fortunes was added specifically to claw back wealth above €3M from residents of regions that had bonificated. For a couple with $3M+, this is real. We model the threshold annually rather than assuming Andalucía closes the whole question.

Modelo 720 catches every US account — and most retirees never file it in year one

If you're Spanish tax resident and any of three buckets — foreign accounts, foreign securities (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 covers foreign crypto. The 2022 EU Court ruling struck down the original penalty regime; the filing obligation itself remains. We bring late filers current quietly.

Medicare doesn't follow you to Spain. Sanitas, Adeslas, ASSSA and the convenio especial fill the gap.

Medicare provides essentially no coverage outside the US. NLV holders must show private cover at application. After a year of Spanish residency you may join the public system via the convenio especial for €60–€157/month — but it's regional, has waiting periods, and excludes pharmacy. Most American couples here run a hybrid: Sanitas, Adeslas or ASSSA private cover for fast access at €120–€280/month each, with Medicare kept active for time spent in the US. We put the healthcare line in writing — usually €5,000–€10,000/year per couple — before you commit.

Schwab, Fidelity and Vanguard are quietly closing accounts for clients with a Spanish address

A forced US liquidation crystallises an unplanned tax year — usually in a year you needed predictability, not surprise. Interactive Brokers, Schwab International (for qualifying clients), and a small number of Spain-friendly setups genuinely work for US retirees in Spain. The migration has to be sequenced — ideally before you change your address with the IRS and the custodian.

The private banker at your local Santander or BBVA branch will pitch a fondo de inversión. For an American, every one is a PFIC.

Spanish fondos de inversión, planes de pensiones, PIAS and Unit-Linked savings policies sold through Santander, BBVA, CaixaBank and Sabadell are the standard local recommendation. For a US person they're Passive Foreign Investment Companies — Form 8621 each, default IRS treatment can produce a US tax bill larger than the gain. Stay US-domiciled.

Your portfolio is in dollars. Your bills are in euros. 5–15% swings turn a stable retirement into a volatile one.

We layer in a measured EUR exposure sized to your actual euro spending — not the whole portfolio — so day-to-day life isn't held hostage to FX. A small currency floor inside the bucket strategy is usually the difference between sleeping well and watching the news.

Frequently asked questions

I'm retired on the NLV in Marbella. Do I really have to file Modelo 720?

Yes, if your foreign accounts, foreign securities (IRA, 401(k), Roth, US brokerage) or foreign real estate each exceed €50,000 at year-end. The 2022 EU Court ruling killed the original penalty regime; the filing obligation itself remains. We bring late filers current quietly.

Is my Roth IRA really taxed in Spain?

Generally yes. Spain doesn't recognise the Roth as a tax-free vehicle. Inside build-up may be treated as savings income year by year, and distributions are taxed on the gain at 19–28%. Whether to draw it down before moving, after, or convert in your final US-resident year is one of the highest-value decisions on the table.

How is Andalucía different from other Spanish regions for retirees?

Andalucía applies a 100% bonificación on the wealth tax (effectively zero) and a 99% bonificación on inheritance and gift tax for direct descendants. That's why so many American retirees concentrate on the Costa del Sol. The national Solidarity Tax catches wealth above €3M, but for most couples Andalucía is the most welcoming Spanish region tax-wise.

Is there an estate tax treaty between the US and Spain?

No. There's an income tax treaty but no estate or gift tax treaty. The US estate tax (up to 40% above the exemption) and Spanish ISD can both apply to the same death, with only a unilateral US foreign tax credit to soften it. Coordinating around that gap with regional planning and structured lifetime gifting is one of the most important things we do for couples on the Costa del Sol.

What about Medicare?

Medicare provides essentially no coverage outside the US. After a year of Spanish residency you may join the public system via the convenio especial (€60–€157/month, regional, with waiting periods and no pharmacy). Most American couples run a hybrid: Sanitas, Adeslas or ASSSA private cover at €120–€280/month each, plus convenio especial, with Medicare kept active for time spent in the US.

My US broker is sending warning letters because I moved to Spain. What do I do?

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 genuinely support US retirees here. We've sequenced this migration for many couples — order of operations is what protects the tax bill.

What about my BBVA fondo or Santander pension plan?

Almost certainly PFICs. The Spanish €1,500 pension contribution deduction is rarely worth the cross-border friction. We unwind them in a tax-aware sequence and rebuild on US-domiciled funds.

How do I handle EUR/USD risk on US-funded retirement income?

Your portfolio is in USD; your bills are in EUR. 5–15% annual currency swings turn a stable retirement into a volatile one. We layer in a measured EUR exposure sized to your actual euro spending — not the whole portfolio — so daily life isn't held hostage to FX.

Do you actually file my US or Spanish taxes?

No, deliberately. We coordinate your US CPA and your Spanish asesor fiscal into one strategy, and we design the investment, pension and estate 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. 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).