Very good Video! US public pensions are not subject to income tax directly from Spain, however you must add them to your taxable income in Spain which increases the progressive tax rates on your other income. Taxes and bureaucracy (such as taking 4 months and over 1000 euros to get a drivers license in Spain if you are from the US) are two of the very few negatives of moving to that beautiful country from the US.
Thanks so much. You are correct that you must add public pensions to your taxable income in Spain which increases the progessive tax rates on any other income you may have. Yes, we've heard obtaining the Spanish drivers license for US citizens can be rather aggrivating. Didn't realize it is that expensive too. Thanks for sharing!!
That was a ton of information packed into a 25 minute video. The onscreen summaries and bullet points were especially helpful in synthesizing the information. Thanks to your guests for their helpful info and thanks to you two for making a complicated subject really accessible. Keep up the good work!
Thanks for providing such detailed information in your video and the 20-minute consultation opportunity. I will indeed be getting in touch with them soon. I am a retired civil servant who also happens to be Latin American. I was previously considering Portugal to retire, even after NHR stopped; however, Spain's lack of taxation on my pension altogether is more enticing. Really appreciate the content and your channel!
Thank you for the great information. I always enjoy your videos. The one thing that has always confused me is that I've read on some Spanish tax sites that a 401K and Traditional IRA are treated like a pension and are not subject to wealth tax (except for distributions). Roth IRAs are subject though as they are seen as bank accounts. I do plan on meeting with a professional at some point in the future in person and hopefully can clear up those details.
Thanks for watching!! We have seen the same thing and you will find that different tax professionals in Spain will give you different answers. Pro Spain advised that according to tax authorities criteria since these financial products allow for withdrawal at any time, the tax payer has a right of surrender similar to that which can occur in a life insurance policy so they will be considered for wealth tax. Additionally, tax laws change rather often in Spain, therefore, we prefer to consider that it will be subject to wealth tax and if it changes in our favor then it is the cherry on top to living in Spain.
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.
Thanks for watching! Sorry the background music is distracting. This is our first Q&A (podcast style) video, we are learning what our viewers like and appreciate you commenting.
Thanks for all the info! However, I'm confused by Flor's comment about the 183 days rule. She said that if you arrive after June 30 in a year, you won't be a tax resident for that year because you won't make it to 183. There are 184 days from July 1 to December 31, correct?
You are very welcome and thanks for watching! In regards to your question, July 1 to December 31 is 183 days. In our first video, we mentioned moving after July 3rd so there could not be any confusion. I'd rather be safe than sorry over just a few extra days.
@@SeekingParadiseBugs Thanks for the reply. I'm like you, in that I'd rather be safe than sorry. I'm still not sure about your calculation, though. There are 31 days in July, August, October and December. That would make 184. If it happens for us, I'll probably do July 3 to be safe! :)
Yes, from the US side of an international move there are many requirements. We always file a FBAR regardless of how much money we have in foreign accounts.
Not sure how the free 20-minute consultation is supposed to work. I scanned the QR code and it took me to their site. From there, I typed my name and phone # as directed and after submitting, it took me to a page in Russian. I went back to their home page and sent a message to them via email. I have heard nothing back from them via this route, either. Not a great advertisement for a company.
Thank you for letting us know. We know they've had consultations with other viewers and are sorry to hear you haven't had a prompt response. We will follow up with them today for a status.
@TimothyBerkey Pro Spain informed us they tried to contact you but the phone number they received did not include a country code. They tried the US country code and it didn't work. Would you like to email us to coordinate with them? Our email is our channel name @gmail.
@@SeekingParadiseBugs That's strange. Yes, it would have been US. Not sure why it wouldn't have worked for them. Thanks for following through. I will send you an email.
No, you are on a student visa and the stipend you get is considered a grant not a salary and therfore not taxed. However, you still have to file your US taxes.
@christinecleavest9099 Thank you! I'm guessing that Participating in NALCAP doesn't mean you can't get Beckham law later on bc you weren't a Spanish tex payer during that time then?
