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🇪🇸Spain Guide · Updated 2026

Complete guide: US LLC for residents of Spain

Everything you need to know to form and manage a US LLC in compliance with ES tax regulations.

🇪🇸 3 key obligations for residents of Spain

1Modelo 720: declaration of foreign assets exceeding €50,000
2IRPF on foreign income from the LLC
3Mandatory IRS Form 5472 due by April 15

Detailed tax obligations

Modelo 720 — Declaración de bienes en el extranjero (Declaration of foreign assets)

If the total value of your foreign assets (accounts, real estate, ownership stakes) exceeds €50,000 in any single category, you must file Modelo 720 with the Agencia Tributaria. Your LLC ownership stake falls under the "valores y derechos" (securities and rights) category.

Since 2022, penalties have been reduced following the EU court ruling, but filing remains mandatory. Proportional penalty for omission.

IRPF — Impuesto sobre la Renta de las Personas Físicas (Personal income tax)

Income from the US LLC is taxed in Spain as rendimientos de actividades económicas (business income) or rendimientos del capital mobiliario (investment income). A foreign tax credit applies to avoid double taxation under the US-Spain tax treaty.

Modelo 100 — Annual income tax return

Foreign income must be included in the annual income tax return (Modelo 100/Renta). LLC income must be converted to EUR at the exchange rate on the date of the transaction or at the annual average exchange rate.

Form 5472 — IRS Annual Return

Every LLC with a foreign owner must file Form 5472 along with a pro-forma 1120 with the IRS by April 15.

$25,000 penalty for each Form 5472 not filed or filed incompletely.

Deadline calendar 2026

Key dates for your LLC if you are a resident of Spain.

March 31

Modelo 720 (AEAT)

Declaration of foreign assets if they exceed €50,000 per category. Only required if there are changes exceeding €20,000.

April 15

Form 5472 + 1120 (IRS)

Annual deadline for the US federal return.

June 30

IRPF — Renta (AEAT)

Deadline for the Spanish income tax return including foreign income from the LLC.

January 1 (following year)

Wyoming Annual Report

Wyoming annual report. Fee: ~$60. Included in the Incorpo plan.

Step-by-step guide

1

Form your LLC with Incorpo

Complete the onboarding in 10 minutes. Wyoming registration, EIN, and Registered Agent included.

2

Open a US business bank account

With your LLC documents, open an account with Mercury or Relay. Step-by-step guide included in the Essential plan.

3

Check Modelo 720 requirements

If your foreign assets exceed €50,000, prepare Modelo 720 with your asesor fiscal (tax advisor) by March 31.

4

File Form 5472 by April 15

With the Essential plan, Form 5472 is included and prepared by us.

5

Declare income in the Renta

Include LLC income in your IRPF tax return by June. The guide for your asesor fiscal is included in the Essential plan.

Frequently asked questions — Spain

Do I need to file Modelo 720 if the LLC is worth less than €50,000?+
No, if the total value of your foreign assets in the "valores" (securities) category is below €50,000, you are not required to file Modelo 720. Note: the threshold is calculated by adding up all foreign assets in the same category.
How is LLC income taxed in Spain?+
A single-member LLC is tax-transparent in the US. Income is attributed to the member and taxed in Spain at IRPF rates (from 19% to 47%). A foreign tax credit applies for taxes paid in the US.
Do I need a specialized asesor fiscal (tax advisor)?+
We recommend an asesor with experience in international taxation. With the Essential plan, we provide a complete guide in Spanish for your asesor.
What happens if I don't file Form 5472?+
The IRS penalty is $25,000 per form not filed. With Incorpo Essential, we alert you in advance and prepare the form for you.
Can I deduct LLC expenses in Spain?+
Business expenses of the LLC reduce taxable income at the LLC level. The net income (after expenses) is what gets taxed in Spain.

Form your LLC with the Spain compliance guide

The Essential plan includes Form 5472, the compliance guide for Spain, and automatic deadline alerts.

Form your LLC now →

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