The Powderfinger frontman, who retired from the Australian group and relocated to Spain with his wife and 22-month-old daughter Gabrielle earlier this year, said that she is like an "earthquake" sometimes.
Fanning told the Herald Sun: "We live in an average [neighbourhood]. And I'm lucky. I don't have to go to work. I'm writing at home. But at the same time I have a 2-year-old daughter, so most of my time is dedicated to helping control that earthquake.
"She is, like I imagine all children are, a pleasure the majority of the time, then, at other times, extraordinarily trying. It's amazing to see what sponges they are for information. She's speaking Spanish. She understands English, but doesn't speak it yet."
Fanning continued: "She is learning whether to take the teddy to the bedroom or leave it on the floor. You can see her contemplating that. It gives you a sense of how complicated we adults make things, whereas kids distil everything down to the real basics."
The musician also said that he loves being anonymous and dealing with the language barriers in Spain, adding: "It's fun to pretend I know what people are talking about. It's a great relief to me, to not understand and be in my own little world. My new world in Madrid is pretty stunning."
Fanning recently revealed that he split Powderfinger up because he wanted "independence", but his bandmates Ian Haug and Jon Coghill have admitted that they didn't want to retire.