Tax consequences for retired dual citizen (US and Spain) moving to Spain

[origun]

Client has lived in US since 1955 and is planning on moving back to Spain for the rest of his life (he is in early 80s, single and alert). Only income is SS, small pension, IRA and interest but enough to have some tax liability and some SS is taxable. I need help finding a good source about tax consequences so I can give him good advice. He is not highly educated, not terribly fluent in English and not tech savvy. I have found some information about tax treaties between the 2 countries and there shouldn't be double taxation. Will he have to file both US and Spain returns for the rest of his life?

[ATSMAN]

That appears to be correct. I personally don't get involved in researching how a foreign country taxes US sourced income because many countries have weird laws that are not easily researched.

Last year I got stuck with a US citizen who was working in Germany for two years and paid German taxes but the returns were in German and he could not translate all the forms for me.

I limit myself to what is known in the US tax treaty with that country if one exists.

[Burke]

. I have found some information about tax treaties between the 2 countries and there shouldn't be double taxation. Will he have to file both US and Spain returns for the rest of his life?

Is he actually a US citizen?

[origun]

Yes, he has dual citizenship and has both a US and Spanish passport.

[Lion]

A US citizen reports worldwide income on his tax returns. He won't be able to use the FEIE, because he has no Earned income; but, he could make use of the foreign tax credit. You'll have to search for information on Spain's requirements.