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So I am an independent contractor with and LLC in the US. I periodically reside in Spain and want to offer consulting services to Spanish and other European clients that would be conducted online/via Skype. What are my tax obligations in US? Spain? Europe? Thank you!

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As a US citizen, you enjoy the privilege of having to pay US Federal income tax on your world-wide income but you do get some credits for taxes paid to foreign governments. What Spain (or other European countries where your clients reside) will demand/withhold in taxes on payments to your LLC is a different matter, as well as whether LLCs are taxed differently (instead of being treated as pass-through entities with taxes being paid by the LLC owners individually) is another matter, perhaps better suited to startups.SE for an answer. – Dilip Sarwate Sep 26 '12 at 18:00
This kind of question is going to be basically impossible to answer with out having enough specifics to make it to localized. You are probably going to need to consult some professionals. – user4127 Sep 26 '12 at 18:47

With something this complicated you are going to want to consult professionals. Either a professional with international experience, who will tell you the best tax arrangement overall but might come expensive, or one professional in each country who will optimize for that country. You will have to pay US taxes, and depending on your residency probably some in Spain. Double tax agreements should kick in to prevent you paying tax on the same money twice.

You do not have to pay separate 'European' taxes. If you do substantial business in another country you might have to pay there, but one of your professionals should sort it out.

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