International Living Community

With the information you provided, any of the three countries would be a fit, although they are also very different. Some things to consider are the language (which would you prefer to learn), the culture and lifestyle, and if still unsure look at the taxes you will be paying in each county. If you like all three, this could be a deciding factor. Make a list of all the things you want and then a list of the cities/towns in each country that fit that list. Then go visit these places for as long as you can. You are allowed 90 out of 180 days to visit. When you go, don't look at the places through the lens of a tourist. Think about if you would like to live here every day. It is very different from being somewhere on vacation and living there. I agree with Chip, get off the beaten path a really explore each country. You will probably be surprised with the places you find and the people you meet. Enjoy the journey to finding your new home.

• Sally Pederson
  International Living, Spain Correspondent

Hello,
I don't believe there is a "#1 place to retire." It is impossible to pick one country, let alone one place. There are going to be people who absolutely love Almunecar and others who don't. The best advice I can give is to really think about the lifestyle you want, the things you enjoy doing, and the weather you prefer. If this region still fits that, then go there and spend a few months there. You have up to 90 days out of every 180 days in the Schengen Agreement countries. Use that time wisely and to your advantage to find which place is best for you.

-Sally Pederson
IL Spain Correspondent

Hello,
I spent 5 years living in Spain. I'm there casually now. I don't recommend people to do things the way I do, unless they are single. I was traveling a lot at the time, and after spending three days in Barcelona, I decided to make it home base for me. It was not my first (no last) international move. It was a great city and I quickly made many friends by going to events and co-working spaces. Like every country, there are pros and cons. My recommendation is to really think about exactly what you want. Then go to both Portugal and Spain and visit several areas to find which one will be best for you.
Regards, Sally Pederson
IL Spain Correspondent

Hello,
Moving to Spain can have significant tax implications, even if you currently pay no taxes in the U.S. on your Social Security and Roth IRA income. Spain's tax system treats different types of income differently, and as a resident, you would be subject to Spanish tax laws. Here’s a breakdown of what you might expect:

Tax Residency

• Tax Residency in Spain: If you spend more than 183 days in Spain in a calendar year, or if your main economic interests or business activities are based there, you would be considered a tax resident.

Types of Income

1. Social Security Benefits:

   • U.S. Social Security: According to the U.S.-Spain tax treaty, U.S. Social Security benefits are taxable only in the country of residence. Therefore, if you are a tax resident of Spain, your U.S. Social Security benefits would be taxable in Spain.
   • Tax Rates: Spain taxes pensions and annuities (including Social Security) at progressive rates ranging from 19% to 47%.

2. Roth IRA Distributions:

   • Roth IRA: Roth IRA distributions are generally not taxable in the U.S. if the account has been open for at least five years and the distribution is made after the account holder reaches age 59½.
   • Spanish Tax Treatment: Spain does not have specific provisions for Roth IRAs. However, Roth IRA distributions may be considered as taxable income under Spanish tax law. It's advisable to consult a Spanish tax advisor for specifics, but generally, investment income could be taxed at rates ranging from 19% to 26%.

Other Considerations

• Wealth Tax: Some regions of Spain imposes a wealth tax on individuals whose net worth exceeds certain thresholds. The rate varies by region and ranges from 0.2% to 3.5%.
• Double Taxation Relief: The U.S.-Spain tax treaty helps prevent double taxation. You may be able to claim a foreign tax credit in the U.S. for taxes paid to Spain on your income.
• Compliance: Ensure compliance with both U.S. and Spanish tax authorities by filing the necessary forms and declarations, including the FBAR (Foreign Bank Account Report) if applicable.

Everyone’s situation is different, so I recommend you fill out this form below and my tax team of professionals who specializes in international tax law to get precise advice tailored to your specific situation and to help you navigate both U.S. and Spanish tax obligations efficiently. https://share.hsforms.com/19A3yzsr9RBKhwZaGjd5pWg2oey6

Hi Don and Yvonne,
To aswer you question I would need a lot more information. Are you asking about income tax, property tax, corporate tax, etc.? Are you looking for a tax expert in Spain? I would like to answer better, but I need a more specific question with details.

Regards,
Sally