Why You Might Need to File Both Spain’s Modelo 100 and the U.S. Form 1040 with the same preparer. If you’re navigating life between Spain and the United States, whether personally or professionally? You may find yourself in the unusual — but increasingly common — situation of needing to file both Spain’s Modelo 100 (IRPF) and the U.S. IRS Form 1040. Wondering why that is? Let’s break it down.
At US Tax Consultants, helping clients understand and manage these cross-border tax obligations is one of our core priorities. It’s exactly why our clients trust us — because we know how to keep them compliant, protected, and informed on both sides of the Atlantic.
- U.S. Citizenship resident in Spain.
One of the main reasons you may need to file both forms is if you live in Spain or have any Spanish source income.
The U.S. taxes its citizens and residents on their worldwide income, no matter where they live. That includes U.S. Citizen who live full-time in Spain.
Spain also taxes worldwide income for those who are considered Spanish tax residents — typically if you spend more than 183 days a year in Spain or have your main economic interests there.
The result? Dual filing obligations.
Even though Spain and the U.S. have a bilateral tax treaty to avoid double taxation, the filing requirements remain. You don’t get out of filing in one country just because you file in the other.
- Foreign Asset Reporting Requirements
Both countries also have strict rules around reporting foreign assets and bank accounts:
- In the U.S., if you have foreign financial accounts or assets above certain thresholds, you may need to file FBAR (FinCEN Form 114) and Form 8938 (FATCA).
- In Spain, if you hold more than €50,000 in foreign assets, you might be required to file Modelo 720.
These forms are about transparency and carry severe penalties if ignored or done incorrectly — which is why our team at US Tax Consultants prioritizes early, accurate planning and submission.
- Avoiding Double Taxation
Filing in both countries isn’t just about compliance — it’s also how you claim tax credits or deductions to avoid paying tax twice on the same income.
- In the U.S., you can usually claim the Foreign Tax Credit (via Form 1116) to offset U.S. taxes on income already taxed in Spain.
- In Spain, you may apply the international double taxation deduction through your IRPF return (Modelo 100) in those cases accepted by the AEAT.
But here’s the key: you must file correctly in both countries to benefit from these provisions.
- Mixed-Source Income
If you earn income from both Spain and the U.S., such as rental income from a U.S. property and a salary from a Spanish employer, both countries require you to report it.
They apply different tax rates, exemptions, and thresholds — so it’s crucial to file strategically and correctly.
- Heavy Penalties for Non-Compliance
Both the IRS and the Spanish tax authorities impose harsh penalties for failure to file or filing incorrectly. This includes:
- Significant financial penalties
- Loss of tax benefits
- Legal complications — particularly if you hold permanent residency or citizenship in either country
At US Tax Consultants, one of our main goals is helping our clients avoid unnecessary stress and penalties by taking proactive steps with their tax filings. Clients trust us because we understand the system on both sides — not just the forms, but the strategy behind when and how to file.
Final Thoughts
Filing both the Modelo 100 and Form 1040 isn’t just a bureaucratic headache — it’s a legal requirement for many dual taxpayers. Whether you’re an American living in Spain, a Spanish resident with U.S. income, or somewhere in between, you need a clear tax strategy.
This is exactly where US Tax Consultants comes in. With deep expertise in international tax compliance, we guide our clients through every step — minimizing risk and optimizing outcomes.
Got questions? Reach out. We’re here to make cross-border taxes simpler. Please call us +34 915194392 or book a free appointment.
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