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Retiring abroad--taxes
Old 02-28-2012, 09:27 AM   #1
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Retiring abroad--taxes

There has been some conflicting information floating around about tax situations for a retiree overseas.

I found a wonderfully clear introduction to the situation written by a Roger B. Adams, EA, here:
UNDERSTANDING TAX TREATIES

I have tried to read these treaties myself, so this was a marvelous discovery.

One of the less-defined situations is retiring and becoming a tax resident of a country without a tax treaty with the US (case in point, Colombia; tax treaty being negotiated now). As it happens in this case, Colombia won't tax retirement funds from outside until they are more than $10,000/month, so you pay income tax in the US for withdrawing from your IRA, but not in Colombia, so no problem. And, it seems that if you don't earn your $ in-country, most places in Latin America won't even pay attention to you (although, I would never recommend an extra-legal situation), except that you may need to show a monthly income to legally stay in-country.

It is not as bad as I thought it would be.

Now all I have to worry about is kidnappings and robberies.
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Old 02-28-2012, 12:44 PM   #2
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Quote:
Originally Posted by Ed_The_Gypsy View Post
There has been some conflicting information floating around about tax situations for a retiree overseas.

I found a wonderfully clear introduction to the situation written by a Roger B. Adams, EA, here:
UNDERSTANDING TAX TREATIES



It is not as bad as I thought it would be.

Now all I have to worry about is kidnappings and robberies.
And perhaps abogados more than robberies.
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