A US LLC for residents of Spain

A US LLC while you live in Spain: how it actually works.

Yes, you can own a US LLC while you're a tax resident of Spain. What almost no one explains clearly is the other half: how that company fits with your IRPF income tax, your modelo 720, and the Spanish tax authority. This is the pillar guide —the full map— and from here we link each piece in detail.

✓ Two layers, not one. Your LLC is one layer (the US); you, a resident of Spain, are another (your IRPF). Most of the mess comes from mixing them. Here they stay separate.

What an LLC is —and isn't— for the tax authority

A single-member LLC is, by default, a disregarded entity: for the US tax authority it doesn't pay tax as a corporation; its profits "pass through" to the owner. For Spain, this matters: it is not automatically an opaque foreign company, and it isn't a hiding place. Whatever you earn through it, as a Spanish tax resident, you report on your IRPF. The LLC doesn't make you invisible; it gives you a clean structure that can be banked and proven.

It's the part hardest to explain to an accountant who hasn't seen LLCs before. For that we wrote a plain-language explainer: what your LLC is for the tax authority, for your accountant.

The two layers, in detail

🇺🇸 The company (US side)

What the LLC must comply with in the United States, regardless of where you live:

Form 1120 + 5472 — mandatory annual informational filing for a foreign-owned LLC.
FBAR (FinCEN 114) — if accounts exceed the threshold.
BEA (BE-13 / BE-15) — foreign-investment surveys.
An active registered agent and, depending on the state, its upkeep.

The detail of each obligation: your LLC's tax obligations.

🇪🇸 You (Spain side)

What you, as a Spanish tax resident, report for owning that company:

IRPF — the income you obtain through the LLC is taxed on your personal return.
Modelo 720 — declaration of assets and rights held abroad, if you cross the threshold.
Consistency with your situation: the paper should match reality.

The full Spain×LLC framing: Spain, the tax authority, and your LLC.

LLC vs. autónomo or an SL in Spain

The eternal question: "wouldn't being self-employed work the same?" The honest answer is it depends on your case —type of clients, volume, where you get paid, whether you want to operate in USD. An LLC isn't magically cheaper for everyone; it is for specific profiles. We break it down without spin in LLC vs. self-employed, and you can learn more across our LLC guides.

If the tax authority asks

Keeping the structure tidy isn't about "hiding": it's about answering with paper the day the AEAT asks you to justify your LLC. If you get a request, there's an order to do it right —and mistakes that make it worse. You have it step by step in got a letter from the AEAT?. The formal response is filed by your tax advisor in Spain; we document the US structure.

Is it right for you? Be honest with yourself

It makes sense if…

You sell services or digital products to clients outside Spain.
You want to get paid in USD and use US banking.
You want a clean structure that can be banked and proven.
You're willing to declare properly on both sides.

Probably not, if…

Your clients and activity are 100% within Spain.
You're looking to "not declare" —that's not what an LLC does.
Your volume doesn't justify the annual upkeep.
You don't want to coordinate with a Spanish tax advisor.

Frequently asked questions

Is it legal to have a US LLC while living in Spain?

Yes. There is nothing illegal about a Spanish tax resident being a member of a US LLC. What matters is declaring correctly: the annual US informational filing (1120 + 5472) and, in Spain, your IRPF and the modelo 720 if you cross the threshold. The structure is legal; failing to declare is what causes problems.

Does my LLC pay tax in Spain?

A single-member LLC is usually a disregarded entity: it doesn't "pay" on its own in the US; its profits are attributed to the owner. As a resident of Spain, you integrate that income into your IRPF. The exact treatment depends on your case and is confirmed by your tax advisor; this is general information, not a closed determination.

Do I have to file the modelo 720?

It depends on whether you exceed the thresholds for assets and rights held abroad (accounts, securities, holdings). Many LLC owners do qualify. It's an informational return: not a tax in itself, but omitting it has consequences. Your advisor in Spain determines whether it applies and files it.

What obligations does the LLC have in the United States?

The annual Form 1120 + 5472 informational filing (mandatory for a foreign-owned LLC), the FBAR (FinCEN 114) if accounts exceed the threshold, the BEA surveys (BE-13/BE-15) when they apply, and keeping the registered agent active. The compliance we handle is FBAR + BEA; that's the real federal framework.

Does an LLC save me tax versus being self-employed?

Not automatically, and not for everyone. For specific profiles —international clients, payment in USD, a certain volume— the combination can be efficient; for a 100% Spanish activity it often doesn't pay off. Estimate your case and, above all, check it with your advisor before deciding.

Want to set up your LLC with the Spain side properly handled?

We create and maintain the LLC, and leave you the documentation ready so your advisor in Spain can declare with backup.

Get started → Learn about LLCs

This page is general information, not legal or tax advice, and does not replace your advisor in Spain. Devil Club creates and maintains the US structure of your LLC; the formal filing before the AEAT (IRPF, modelo 720) is handled by your accountant or tax advisor. The specific treatment depends on your personal situation. We are not a law firm and do not represent you before the tax authority.