U.S. Tax Considerations for Spanish Residents with U.S. Businesses and Investments

Does this sound like your situation?

• You live in Spain and own (or plan to form) a U.S. LLC or corporation.
• You sell to U.S. customers, use Stripe, Amazon or a U.S. bank account through your company.
• You own, rent out or plan to buy U.S. real estate or other U.S. investments.
• You are not sure what the IRS expects each year — or you think you missed a filing.

Do foreign-owned U.S. LLCs need to file Form 5472?

Often yes. A single-member U.S. LLC owned by a foreign person — including a resident of Spain — generally must file Form 5472 attached to a pro forma Form 1120 every year it has reportable transactions with its owner, such as money you put in or take out. This applies even when no U.S. tax is owed. Multi-member LLCs and corporations have their own annual returns.

What are the deadlines and penalties?

• Form 5472 with pro forma Form 1120 (calendar-year LLC): April 15, extendable to October 15 with Form 7004.
• The penalty for a missing or late Form 5472 is $25,000 per form, per year.
• If you personally earn U.S.-source income or sell U.S. property, you may also need your own Form 1040-NR and an ITIN.

Do I need an EIN or ITIN?

Your U.S. company needs an EIN to file, open bank accounts and work with payment processors. You personally may need an ITIN if you must file a U.S. return or claim treaty benefits. We can help obtain both.

How is my U.S. business income taxed?

It depends on how the company is set up and where the work is done. Some foreign-owned LLCs owe no U.S. income tax but still must file information returns; others with U.S. business activity owe U.S. tax. Income may also be taxable in Spain, so we coordinate both sides.

What if I own or sell U.S. real estate?

Rental income from U.S. property is reported to the IRS, often on a net basis after expenses. When a foreign owner sells U.S. property, part of the sale price is usually withheld at closing, and a U.S. return is filed to settle the final tax.

How is money I take out of the U.S. taxed?

Dividends and some other payments from the U.S. to foreign owners are generally subject to withholding, commonly 30%. A treaty between the U.S. and Spain, if one exists, may reduce that rate.

I think I missed a filing — what should I do?

Don't ignore it. Late Form 5472 filings can often be brought current, and in the right circumstances a reasonable-cause statement can ask the IRS to waive penalties. Acting before the IRS contacts you usually gives you better options.

How Chirino USA can help

• Prepare your U.S. tax returns and international forms (FBAR, Form 8938, Form 5472, pro forma 1120, 1040-NR).
• Catch you up on missed years and request penalty relief where it applies.
• Plan ahead for a move, a new U.S. company, or a U.S. property purchase.
• Work with your local advisor so both countries' filings line up.

Our international tax specialists handle the U.S. side only — U.S. federal returns, international reporting, and planning. The team includes licensed CPAs, IRS Enrolled Agents (EAs), and experienced U.S. tax professionals. We do not prepare foreign tax returns or give legal advice under other countries' laws. Schedule a free consultation and we'll tell you exactly what you need to file.

Sources and official references

• IRS — United States income tax treaties A to Z
• IRS Publication 515 — Withholding of Tax on Nonresident Aliens and Foreign Entities
• IRS — Instructions for Form 5472
• IRS — FIRPTA withholding
• IRS — Estate tax for nonresidents not citizens of the United States