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Dual Citizen/Resident (EU & USA) – Tax Implication (Barcelona)

Any help/advice on my situation explained below would be greatly appreciated!

Background: I am both a USA citizen and EU citizen with dual passports and residency. I left the USA 1.5 years ago and am currently living in Spain. I have my own self proprietor owned business in the USA (and make income from USA based clients) so I’ve always paid US taxes while living abroad. I’ve made about 15K from my USA based business so far this year and none yet in the EU.

Question: I have been offered a 3 month full time contract position in Spain which could lead to full time employment (from a Danish company with an office in Barcelona) and am trying to figure out A) whether to bill the Danish company through my USA company (and pay USA taxes) or B) register for my NIE and pay taxes here in Spain.

Solution: I am leaning towards option A because I already have my business setup there so it seems like a lot of less of a hassle. I also have to wait for 1 month just to get an appointment to get my NIE.

Originally, I preferred to report and pay the taxes in Spain in order to reduce my overall tax liability (since most countries don’t take your first Protected content euros) but I heard that I would have to pay around Protected content (in addition to regular income taxes) just in social security fees (autonomo?) which seems ridiculously high since I don’t plan to live in Spain for more than a couple of years and already have benefits like health care (from Hungary where I am resident with a security card).

Has anyone been in a similar situation? Any advice?

I’m looking for solutions that A) are simple and B) reduce my overall tax liability.


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