Spain Tax-Optimized Retirement Modeler (v24)

v24 (Final): This model uses an income-focused allocation (40% US Treasuries) to solve for capital gains tax on withdrawals. Includes optional Beckham Law toggle.

Personal & Timing

D.'s Start Age

Maya's Start Age

D.'s Retirement Age

Maya's Retirement Age

D.'s Life Expectancy (Age)

Spanish male average: 81 years

Maya's Life Expectancy (Age)

Spanish female average: 86 years

RMD Start Age

Financials & `Autónomo`

Post-Tax Start Assets (USD)

Enter assets already held in taxable/post-tax accounts. Total Start Assets = Post-Tax + Pre-Tax IRA.

Total Start Assets (USD)

Computed as Post-Tax + Pre-Tax IRA. Updates automatically as you edit either field.

Pre-Tax IRA/401k (USD)

Annual Spending (Start, USD)

`Autónomo` Intro Rate (p.p./yr USD)

`Autónomo` Full Rate (p.p./yr USD)

`Autónomo` Intro Years

Apply Beckham Law (First 6 Yrs)

Replaces Autónomo and progressive IRPF with a flat 24% on freelance income. Exempts foreign capital gains, RMDs, SS, and limits Wealth Tax to Spanish assets.

Roth Conversions During Beckham Period

Convert Traditional IRA to Roth during Beckham years. Foreign IRA withdrawals are tax-exempt in Spain, so you only pay US tax on conversions.

Rates, Home & Charity

USD to EUR Exchange Rate

Inflation Rate (%)

Portfolio Growth Rate (%)

Portfolio Return (Blended)

Nominal (%):

Nominal (USD/year):

Nominal (EUR/year):

Real (after inflation %):

Real (USD/year):

Real (EUR/year):

Calculated as: allocEtf*portfolioGrowth + allocTreasury*yieldTreasury + allocDividend*yieldDividend. Real = nominal - inflation.

Post-Tax Cost Basis (%)

Home Purchase Price (EUR)

Home Purchase Tax/Fee (%)

Home Purchase Year (e.g., 1)

Home Appreciation Rate (%)

Annual Donation (Start, USD)

Start Charity Year (e.g., 3)

Income & Portfolio

German Pension Start Age

German Pension (EUR/month)

Enter your expected monthly German pension payment.

D.'s Freelance Income (Start)

Maya's Freelance Income (Start)

Inflate Freelance & Charity?

D.'s SS Start Age (Automated)

Maya's SS Start Age (Automated)

Inflate SS Income?

Pre-Tax Portfolio Growth Rate (%)

Used for IRA/401k growth. Default is 9% based on your holdings.

Post-Tax Allocation 85% TAX-ADVANTAGED (Optimal)

✓ Accumulating ETFs (%)

✓ US Treasuries (Tax-Exempt) (%)

US Treasury Yield (%)

⚠ Dividend Stocks (Taxable) (%)

Dividend Yield (%)

Cash (%)

Simulation Results

Year-by-Year Data

Year	D.'s Age	Net Worth	IRA Balance	Roth Balance	Freelance	SS Income	RMD	Post-Tax Draw	Home Equity	Taxes Paid (Spain)	Roth Conversion	US Tax on Conversion

10-Strategy Tax Optimization Plan

This calculator implements the core strategies automatically (#3, #6, #7, #9, #10). The following manual strategies can further optimize your plan:

#1 (Pre-Move): Tax-loss harvest all non-qualified assets.
#2 (Pre-Move): Liquidate any QSBS or high-gain assets.
#3 (Modeled): Use a high allocation to tax-exempt US Treasuries (Art. 11).
#4 (Pre-Move): Consider strategic Roth conversions *before* becoming a Spanish tax resident.
#5 (Optional): Use real estate (primary + other) as a wealth tax shelter.
#6 (Modeled): Use tax-efficient withdrawal sequencing (tax-free yield first).
#7 (Modeled): Delay Social Security to age 70 for higher benefits.
#8 (Alternative): Use US Municipal Bonds (requires specific sourcing, complex).
#9 (Modeled): Spend post-tax assets first to preserve the tax-deferred IRA.
#10 (Modeled): Donate appreciated assets for a "double" tax benefit.

Spanish Tax Logic (v24 - Final)

Capital Gains Tax (CGT): Annual "Post-Tax Draw" triggers 19%-28% `Renta del Ahorro` tax only on the *gains portion* (based on "Cost Basis %"). Balanced allocation (45% ETFs) optimizes growth with tax deferral.
US Treasuries (Art. 11): Yield from Treasuries is **TAX-EXEMPT** in Spain and is added directly to cash flow, untaxed. 40% allocation is optimal for income generation and tax efficiency.
Accumulating ETFs: Generate **$0** taxable income, deferring tax until sold (at which point the CGT logic applies). 45% allocation balances growth and income needs.
Dividend Stocks: 10% allocation provides some current income but is taxed annually at 19%-28%.
Cash: 5% allocation for liquidity; earns minimal interest, not taxed.
Charitable Giving: Adds an annual (inflated) donation as a spend. Spanish tax credit (80% on first €150, 35% on rest) is subtracted from IRPF tax bill.
Wealth Tax: Calculated on final EOY balance (after growth & spending) using Valencia's progressive 8-bracket table (0.25%-3.5%).
RMD: Uses a progressive age-based rate table (3.77% - 8.77%).
`Renta General` (IRPF): 7-bracket progressive system (19% to 54%) on EUR income, after the €5,550 personal minimum. D. and Maya are taxed separately.
`Autónomo`: Tracks years worked and switches from Intro Rate to Full Rate after "Intro Years" expire.

US-Spain Tax Treaty Assumptions

**This model calculates SPANISH TAX ONLY.** It assumes this is your primary and largest tax bill.
US Citizenship:** As a US citizen, you are *always* subject to US tax on worldwide income.

Foreign Tax Credit (FTC):** You would file a US return (Form 1040) and Form 1116. The high Spanish taxes (IRPF, Wealth Tax) generate credits. These credits are used to *offset* your US tax liability, preventing double taxation.

Social Security:** Per Article 20, US SS is taxed *only* in the country of residence (Spain). This model correctly adds it to your Spanish `Renta General`.

RMD "Tax Bomb":** The RMD is taxed by *both* countries. This model assumes you pay the very high Spanish `Renta General` tax on it, and then use that tax paid as a credit to wipe out your US tax liability.

10-Scenario Comparison Results

Best Scenario

Scenario ETF % Treasury % Post-Tax Growth % Pre-Tax Growth % D. SS Age Maya SS Age Final Net Worth Goes Negative?

Final Net Worth $0

Goes Negative? N/A

Calculating...