No Florida state income tax, Latin American business networks, crypto assets and EB-5 investors — the unique Miami-to-Spain tax picture.
Key Issues
Miami has a high concentration of crypto investors and Web3 entrepreneurs. Spain taxes crypto gains as capital gains (savings income, 19–28%) or as business income depending on activity level. Crypto held on foreign exchanges must be reported on Model 720 if the threshold is met. Planning before Spanish residency is critical for unrealised gains.
Many Miami residents operate holding structures with subsidiaries in Colombia, Brazil, Mexico or other Latin American markets. The interaction of those structures with Spanish CFC rules (Transparencia Fiscal Internacional) requires analysis before establishing Spanish tax residency.
Florida has no state income tax, which makes the jump to Spain's progressive IRPF rates particularly stark. Beckham Law's 24% flat rate is the most effective mitigation — but it applies only to qualifying employment and professional income. Passive income, rental yields and investment returns are taxed at savings rates.
Key Tax Topics
Florida residents have simpler state exit than NY or CA — no state income tax obligations linger. The focus is on federal and Spanish planning. Timing the Spanish residency trigger correctly.
Spain-US treaty treatment of capital gains from crypto-adjacent assets, EB-5 returns, and Latin American holding company dividends flowing through US entities.
FBAR and FATCA for US accounts. Spanish Model 720 for foreign assets (crypto on foreign exchanges counts). EB-5 investment reporting in Spain.
Pre-move crypto gain realisation at favourable Florida/federal rates. Beckham Law for qualifying professionals. CFC structure review before Spain move to avoid punitive attribution.
Jacob Salama has advised US clients from Miami and across the United States on their Spanish tax position.
Crypto portfolios, Latin American business structures, Beckham Law eligibility — book a free 30-minute consultation to discuss your specific tax position before the move.
Book via CalendlyMany US nationals who have been living in Spain for months or years without filing Spanish returns, or without disclosing US accounts to the AEAT via Modelo 720, find themselves in a position of historical non-compliance. Jacob Salama regularly assists clients in regularising their position across both jurisdictions before the relevant authorities identify the gaps.
On the US side, the IRS Streamlined Procedures (Streamlined Foreign Offshore Procedure for bona fide foreign residents, or Streamlined Domestic Offshore for US-based filers) provide a reduced-penalty path for non-wilful failures to file FBARs, Form 8938, and delinquent income tax returns. Eligibility requires that the failure was non-wilful — meaning it resulted from a lack of understanding of the obligations rather than a deliberate decision to conceal assets.
On the Spanish side, voluntary disclosure of previously unreported foreign assets and income prior to an AEAT investigation significantly reduces penalties and eliminates the risk of criminal referral. The 2022 reforms to Modelo 720 — following the ECJ C-127/12 ruling — removed the most disproportionate penalties, but late filing remains subject to standard tax surcharges under the Ley General Tributaria.
When a Miami resident establishes tax residency in Spain, they simultaneously exit a US state tax regime and enter Spain's IRPF system — which taxes worldwide income at rates up to 47% for general residents, or at a flat 24% for those qualifying under the Beckham Law (Article 93 LIRPF, expanded by the 2022 Startup Law). Florida imposes no state income tax. Miami residents face no state-exit complexity. The planning challenge is the substantial and internationally diverse wealth this community typically brings — crypto, Latin American holding structures, and real estate across multiple jurisdictions require multi-layered DTA and IRPF analysis.
The US-Spain DTA (1990, amended by the 2013 Protocol) contains a Saving Clause under Article 1(4) preserving the US right to tax its citizens worldwide. The foreign tax credit under Article 24 and IRC §901 is the primary double-taxation relief mechanism, but its correct application requires careful sequencing between the two systems.
| Tax | In Miami | In Spain |
|---|---|---|
| Florida state income tax | None (0%) | 24% (Beckham) or up to 47% (general IRPF) |
| US federal income tax | 10%–37% | Still applies (Saving Clause) |
| Spanish IRPF — employment | N/A | 24% (Beckham) / up to 47% |
| Spanish IRPF — savings/investment | N/A | 19%–28% |
| Modelo 720 / FBAR / FATCA | FBAR + FATCA only | Modelo 720 + FBAR + FATCA |
Traditional 401(k) and IRA distributions are treated as private pension income under DTA Article 17. Spain has the primary taxing right once the recipient is a Spanish tax resident. Contributions made on a pre-tax basis and their accumulated growth are subject to IRPF on withdrawal at rates up to 47% under the general scale or 24% under the Beckham regime.
Roth IRA distributions present a well-documented double-taxation trap. The IRS treats qualified Roth distributions as tax-free. Spain does not recognise this exemption — the AEAT treats Roth IRA distributions as taxable investment income under IRPF, meaning contributions already subject to US tax may be taxed again in Spain with no DTA remedy.
Pre-departure planning should address: timing of Roth conversions before establishing Spanish residency; evaluation of accelerated distributions while still a US resident; rollover strategies that simplify Spanish reporting; and Modelo 720 planning — Spanish residents must declare foreign pension accounts above €50,000 per category annually.
Miami professionals who hold interests in offshore structures for Latin American business operations face Spain's controlled foreign corporation (CFC) regime — régimen de transparencia fiscal internacional — upon establishing Spanish residency. Under Articles 91 and 100 of the LIRPF, a Spanish resident who owns at least 25% of a non-Spanish entity that is subject to a tax rate below 75% of the Spanish rate must include that entity's passive income directly in their IRPF base, regardless of whether any distribution has been made.
For Miami professionals with Panamanian, Cayman or BVI holding companies generating investment returns, this CFC attribution can significantly increase Spanish IRPF exposure. Restructuring these holding structures before establishing Spanish residency — or within the first year under the Beckham regime — can eliminate or reduce the CFC impact.
Bitcoin and digital asset holdings must be disclosed annually on Modelo 721 (effective 2023) if their aggregate value exceeds €50,000. The same assets must be reported on Modelo 720 if held in foreign exchanges and exceed the threshold per category. Failure to file Modelo 721 is subject to fixed penalties under Spanish law.
