nun
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2006
- Messages
- 4,872
You are always subject to US taxes. If you live in Europe you are also subject to taxes of European Country where you reside. But you don't have to pay any state tax and European real estate taxes are usually very small. Plus European countries provide inexpensive medical insurance for its residents. Good thing if you retire before 65....
It is exceptional to reside tax free in European Country (similar to Costa Rica or Panama).
Portugal provides exceptional quality of life and Medical facilities to its residents. This is not Philipines.
If you are a US citizen retiring outside the USA will you decide to still pay Medicare, do you know the consequences if you stop paying Medicare?
Some countries might have low taxes for retirees, others might tax you as a resident, whatever the case you have to navigate the taxes of two countries and I expect will become familiar with the IRS 1116 form. Make sure you avoid PFIC issues and if there is a tax treaty in place you must understand that as well and the ways things like IRAs, SS et are taxed when you need to meet the requirements of tax in two countries.