Your Spanish home and US tax
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The US taxes your worldwide income, so Spanish rent goes on your US return, with a credit for the Spanish tax.
Spain may tax your home because it is in Spain. You file the Modelo 210 there every year. Your own country then makes sure you are not taxed twice on the same income.
If you rent the home out
- Report the rent on Schedule E of your Form 1040.
- Claim a foreign tax credit for the Spanish tax on Form 1116, up to the US tax on that income.
If you keep the home for yourself
- No US tax on a home you only use yourself.
- Rented out for fewer than 15 days a year while you use it as a home? Then you do not report that rent.
Tax on what you own
- A home you own directly is not reported on Form 8938 or the FBAR.
What this means for you
Keep the Spanish tax receipts: you need them to claim the credit on Form 1116.
Sources
General information, not tax advice. Your situation may be different. For tax where you live, ask an adviser in your own country.