Early retirees on a quest to find our forever home!
We are Dianne, Guillermo and Che from the USA along with our Mexican souvenir, Buddy. We decided to retire early and embark on a worldwide quest to find our paradise forever home! We've created our checklist with 10 essential requirements that we use to rate each city we visit. We're documenting our experiences and sharing all the invaluable insights we discover along the way.
We moved from the USA to Guadalajara, Mexico in 2018 with Che and lived there for 3 years. Buddy joined our family in 2020 and in 2021 we moved to our new home base...Lisbon, Portugal. Join us on our mission as we explore and rate amazing cities around the globe to find the perfect place that captures our hearts and makes us say, "This is home!"
You can email us at seekingparadisebugs@gmail.com
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Great video. We are a couple in US, planning to move to Spain permanently in a few years for retirement in Alicante area (around 62 yrs old). I assume that combined we will have around $60k/yr or less in SS and IRA/401k. Could you please give an estimate how much taxes we will pay in Spain? Someone told me it will be 30% or less. Is it true? Is Bekham law applicable for us?
Thanks for watching and congrats on your upcoming move for retirement! If you will be retired then Beckham law is not applicable. In regards to your taxes, we highly recommend you reach out to a professional like Pro Spain Consulting. Taxes are very personalized and depending on the accounts your withdrawals are coming from and how much from each person's account, the percentage can differ.
We are a couple in US, planning to move to Spain permanently in a few years for retirement in Alicante area. I assume that combined we will have around $60k/yr or less in SS and IRA/401k. Could you please give an estimate how much taxes we will pay in Spain? Someone told me it will be 30% or less. Is it true?
Congratulations on your upcoming move to Spain for retirement! Individual taxes differ based on the type of accounts you withdraw from and how much from each person's account. Therefore, we recommend speaking with a professional like Pro Spain Consulting.
The whole rental income section is incorrect. It’s 19% for EU 24% for everyone else. And if you are not an EU citizen you CANNOT deduct any costs from that income. 10:02
Thank you for your opinion. Please note this video is specifically about taxes you owe as a Spanish tax resident. As a tax resident in Spain or a tax resident of the EEA you are allowed to take deductions for rental expenses. As a Spanish tax resident you are taxed on the net income under the general tax base up to 47% and as an EEA tax resident a flat tax rate of 19% is applied to your rental income. As a non-EEA tax resident a flat tax rate of 24% is applied to your rental income.
let's say if Lucy has accouts both in Japan and the US, how does the Spain government have the ability to know every single details of both country if Lucy doesn't declare all?
Spain may not have the resources to track every tax payer but Lucy is required to declare worldwide assets as a tax resident of Spain and she may face penalties, non-renewal of residency or prison if they find out she did not.
The music behind the video is unprofessional and it's a bit annoying. People see this to learn and they do not have time wait and listen to the video so, this should have been only chat about about the subject.
@@SeekingParadiseBugs No worries, it’s a very good subject. However, if the music could be removed, that would be great. Also, it would be helpful to see more videos about remote workers and paying tax in Spain. Good luck for the future!
Hi guys really the best and clear tax presentation I have found in youtube, Congrats and keep the good work, found some details that have not found in other presentations, thanks for the excellent work
I truly appreciate your lively and well-prepared videos. I feel really inspired. Inspired to quit my job and get on the first flight to Southern Europe 😃🤘
We have had a number of people recommend Alicante and we hope to visit soon and will definitely publish a video. We have been exploring the Costa del Sol this year and our next Spain video will be on Estepona. It is another area many people have recommended we visit.
Wow, this Florence video is amazing, the best you have done yet. It is full of your normal, "could I live here" objective information plus your personal story of your 20th anniversary. Your editing skills are rocking, great job man. The way you tied in the old and the new material is spot on. Plus it looked like you guys loved your time there. Thanks for sharing it. The best part is your "2044 Look!".
@@SeekingParadiseBugs Agree it is a wonderful place to visit. To live/retire: Florence might be too busy/too many tourists, and most of the rest of Tuscany too quiet (unless you want to just drink wine and enjoy the views every day).
As much as I love the wine in the window concept, I don't think I could live here. It's beautiful and all, but waaaaayyy too many tourists. I'm looking forward to your videos about the other Italian cities you visited and what you guys suggest for activities while touring around. Definitely looks like you found some fun, off-the-beaten-track stuff to do. And Happy 20th Anniversary!
Thanks! The wine windows are definitely a lot of fun to order from and of course the wine is delicious!! We were surprised at how many tourists were there in April and can't imagine during the summer.
that is wonderful to read, thank you! We are glad to be of help and we wish you the best on your journey. Stay in touch and let us know how it goes, maybe we cross paths someday 😊
The vast majority of Spaniards have no problems with the arrival of foreigners, we only ask that they adapt to our culture and social norms and that they contribute to society with their work and/or taxes. We do not want parasites, whether they are people of working age or retirees. People must understand that the possible advantages of living in Spain also entail disadvantages and among these are taxes and our way of life, which may be more or less liked. You cannot only want the good, everything is in the same package.
Very nicely said, thank you! One of the reasons why we think it is so important for people to understand all of the implications before they make a move.
This is an excellent overview with enough detail that makes it clear how important it is to get professional advice well in advance of making any moves.
Thank you and yes, we believe it is crucial to involve a professional in your planning for an international move. We also agree that this advice should be sought more than a year in advance in order to create a timeline that is best for your scenario.
Spain obviously doesn't want expats to move there and the high taxes are another example to demonstrate this. From the videos I've seen, even though it's a beautiful region the negatives are far outwaying any pros and make Spain an undesirable country to move to.
Thank you for your point of view! Personally, we believe the pros outweigh the negatives and knowledge about taxes and residency are necessary to determine the right move for individual circumstances. Thanks so much for watching and commenting.
It is a definitely a challenge for countries to strike a balance between providing public services and managing tax policies. We like the qualify of life offered in Spain and know taxes fund the healthcare, infrastructure, education, etc. Taxes are always a difficult bite to swallow though.
This year a new bilateral social security treaty was signed between the US and Spain, which improves the older one from 1986. Basically, now you can add the contributions of both countries with many fewer constraints. It is interesting not to overlook this fact when working in different countries. Also, annuities derived from turning in an asset of up to 240k€ have incredible tax reductions in Spain depending on your age (I don't know how it works in the US)
@@SeekingParadiseBugs I mean, you can add up all your contributions to the social security of both countries when you ask for your public pension in the US or Spain, to the extent they don't overlap in time. Still, the treaty has to enter into force (in one year or two I guess). Regarding annuities ("renta vitalicia" in Spanish), you can convert up to 240k into annuities free of taxes on the capital gains when the asset is sold for that purpose AND the subsequent annuities are free of taxes themselves to a high degree (up to 92% if you are 70, 80% if you are between 66-69 years, 76% if you are between 60-65 and so on). On top, the taxes on annuities are treated as saving taxes, much better treatment than income taxes. Nevertheless, depends on how much the insurance company wants to pay you and the modality i.e. if you want to keep the option of recovering what is left of the principal at some point, etc. Some people say other investments are better, even with taxes, to have a better revenue stream coming in. Taxes are complex, but it really pays off to look into them. Regarding selling your home, in Spain, regardless of your age, if you sell your primary home and buy other, there should not be taxes to be paid... but I am not sure if your primary home is abroad (don't copy me on this, real state taxes is something I did not look into much).
Lots of great info. I have searched long and hard for a video that would explain if public (military retire) pension and VA disability payment are taxable or not. Your video addresses that and much more. Thank you for this great video and information.
One of the best travel information you tube videos I seen, we are Americans, also retire early and travel a lot, so I will be following your travels, we have a flat on the outside of Malaga, curious why you chose Portugal over spain? will be going to Braga in November,
There were quite a few reasons when we initially decided on Portugal over Spain. Two of them are because we were able to obtain the NHR tax regime status and qualify for citizenship in 5 years to have a European passport. Are you a resident in Spain or do you Schengen shuffle? Have a great time in Braga! We recently posted a video about it also. Keep in touch and let us know if you're ever in Lisbon or Malaga to meet up. We find ourselves in Southern Spain quite often. 😁
Thanks so much for this video. You mentioned military retirement pension being exempt from Spanish income taxes. Does this include U.S military retirement pensions?
Thanks for watching! Yes, this includes US military retirement pensions. If you haven't seen our follow up video, Spanish Taxes Q&A with Pro Spain Consulting it might also be helpful for you.
So, if I'm a Spanish Tax Resident with $100K worldwide income and pay about 33% or 33K in euros to Spain and my US tax rate would be only about 20% or 20K , then the Foreign Tax Credit would cancel out the US Tax ( 20K ) and have an additional 13K carry forward to future years ?
It is our understanding that you can carry forward the unused tax credit for 10 years. We would suggest confirming with a US tax accountant though as we have never done this.
Yes the tax is high here in Spain but there are plenty of ways around it. You would need to live here to understand these ways, and no I cannot broadcast them here. One I can let you in to is that of owning agricultural land. This means you can register as a self sufficient farmer and therefore pay lower rates of both income tax and NIE. Also depending on what you farm ( olives for example ) you will no longer be liable for IVA either. So yes do plenty of research first as it can be very tax heavy living here in Spain. Lots of people move here after seeing how cheap food, drink and property are and then get stung afterwards because they didn't look into their obligations once becoming a resident. And a little hint, if you live here the Spanish don't like you calling youself an expat, you are an immigrant, it is just much more polite and does not project that air of superiority. All the best from Andalusia.
Thank you so much for your insight! We didn't know about the agricultural land and that is a great tip to keep in mind. We agree you must live in a country to understand, learn and appreciate the best ways to prevail there. There is only so much you can learn through research beforehand. We see Spain in our near future and just like we learned more about Portugal living here the last 3 years, I'm sure we'll be learning more about Spain the same way.
@@SeekingParadiseBugs Thanks for the reply. It is lovely living here in Spain but can be expensive. Outside of the finacial issues the other thing to consider is heat. It is presently 38⁰c in the shade here at the moment and I'm 1000m up in the Sierra Nevada mountains. It can be incessant througout the summer. Portugal is considerably cooler. Also everything and anything you do here involves a rediculous amount of paperwork, it is exceedingly complicated and can often take a hugely frustrating amount of time. But the lifestyle in general is very relaxed and there is sunshine all year round mostly. But I would still say try it out before commiting. All the best. Alex
We lived in Lisbon for 15 months before moving to Braga. I really loved our time in Lisbon, and there's no denying that city is always buzzin. But, as you mentioned, it is very expensive. Maybe because you're used to moving frequently, but we always felt like Living in Lisbon was a permanent vacation, and less a proper home. Our apartment was small, lacked key amenities and was still very expensive. Great for an extended holiday, but hard to turn into a home. Braga definitely feels a lot more like a home. We bought a nice apartment here for a fraction of what something similar would cost in Lisbon. While we miss the vibrancy of a city like Lisbon, it is much easier to live a normal life here in Braga. We're an hour away from Porto when we want a weekend of city life, and there's actually a LOT going on here in Braga. You mentioned some of the bigger festivals here, but there's actually a lot more happening; always seems to be a festival or party going on. This city does like to party. Also, regarding the weather; it isn't quite as bad as you made it out to be. You don't need to bring an umbrella with you 8 months of the year. December, January, and February are really rainy. November and March are hit or miss. September and April, you check your weather app, just in case. Other than a slight miss on the weather, I found this a really well-made video. Great production quality, and also very well researched.
