If you are an American business owner planning to move to Spain on the Digital Nomad Visa (DNV), you have likely heard horror stories about taxes.
“Does Spain recognize my LLC?” “Will I be double taxed?” “Do I need to dissolve my company?”
The confusion stems from a simple fact: Spain does not have an equivalent concept to the US LLC. In 2026, Hacienda (the Spanish tax authority) is stricter than ever on foreign entities.
This guide explains exactly how to structure your US LLC for the Digital Nomad Visa to remain compliant and tax-efficient.
Table of contents
- The Core Problem: “Pass-Through” vs. “Opaque”
- The Solution: The “Autónomo” Invoice Model
- Social Security: The Totalization Agreement Hack
- What about the Beckham Law?
- 2026 Updates for US Expats
- FAQs
The Core Problem: “Pass-Through” vs. “Opaque”
In the USA, a Single-Member LLC is a “disregarded entity.” The IRS ignores the company and taxes you personally.
Spain does not do this automatically. By default, Spain may view your LLC as a foreign corporation (an “Opaque” entity). This is dangerous because:
- Corporate Tax Risk: Spain could argue your LLC is “managed and controlled” from Spain, triggering a 25% Spanish Corporate Tax on top of your personal tax.
- Dividend Tax: Taking money out could be seen as dividends, taxed at 19-28%.
The Solution: The “Autónomo” Invoice Model
To use the Digital Nomad Visa safely with a US LLC, most successful applicants use the Autónomo (Freelancer) structure.
Instead of being an “employee” of your own LLC (which requires registering the LLC with Spanish Social Security—a bureaucratic nightmare), you register in Spain as a Self-Employed Freelancer.
How it flows:
- You (Spain): Register as an Autónomo.
- Your Client (USA): Is your own LLC.
- The Process: You send a monthly invoice from your Spanish self to your US LLC for “Management Services.”
- The Tax: You pay Spanish Income Tax (IRPF) on that invoiced amount. The LLC deducts this expense in the US, lowering your US taxable income.
> Key Benefit: This structure satisfies the visa requirement (proving a commercial relationship) and avoids the “Foreign Corporation” trap.
Social Security: The Totalization Agreement Hack
Normally, Spanish Autónomos pay ~€300/month in social security (RETA).
However, the US-Spain Totalization Agreement allows you to remain in the US Social Security system if you are “temporarily” transferred.
- Certificate of Coverage (USA): You can apply for this from the SSA.
- Exemption (Spain): If accepted, you are exempt from paying Spanish social security.
Note: This is complex and depends on whether you are classified as an “employee” or “self-employed” in the eyes of the SSA. Always consult a specialist.
What about the Beckham Law?
This is the “Golden Ticket.” If you structure this correctly and meet the specific “Administrator” requirements, you might qualify for the Beckham Law (24% flat tax).
However, standard freelancers generally do NOT qualify. You usually need to prove you are moving as an Administrator (Director) of the company, not just a freelancer. This requires a specific setup of your LLC’s Operating Agreement before you apply.
2026 Updates for US Expats
- Exchange Rate Buffer: With the Euro strengthening, ensure your LLC pays you enough to meet the new 2026 Income Threshold (~$3,200/mo minimum).
- State Taxes: Remember, while you get Federal foreign tax credits, states like California or New York may not recognize your Spanish residency immediately.
FAQs
Does my LLC need to be 1 year old? Yes. The Digital Nomad Visa requires the company (your LLC) to have existed for at least 1 year prior to application.
Can I just pay myself a W2 salary? Technically yes, but your LLC would need to register a “payroll” branch in Spain to pay Spanish Social Security. This is expensive and complicated. The Autónomo route is preferred for 95% of applicants.
Don’t Guess with the IRS.
Structuring a US LLC for Spain requires a precise mix of US and Spanish tax law. One wrong form can cost you thousands.
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