Hi everyone living in Spain from the U. S. (I envy you so)!
My questions are directed to any expats who are former U. S. green card holders and who receive a U. S. pension and/or Social Security benefits:
1. Is your pension and/or social security taxed by the U. S. or by Spain?
2. If it's taxed by the U. S., is it taxed at the standard effective 25.5% tax rate on the pensions and social security benefits of nonresident aliens or is it taxed at some lower rate per the tax treaty between the U. S. and Spain?
By way of introduction and background, I am currently a green card holder in the
U. S. (with a Mexican passport) and, since retiring a year ago, am seriously considering a permanent move to Spain, which I have loved since seeing "El Cid" at the age of nine****
While I plan to visit Spain next year (for the very first time-it's a long story), in researching a permanent move there I have learned about the 25.5% effective U. S. tax rate on pensions and earned social security benefits of permanent resident aliens who expatriate, unless the U. S. has a tax treaty with the country to which the PRA expatriates and the treaty imposes a different rate. I'm also aware of the tax treaty between the U. S. and Spain but can't tell if the treaty imposes a Spanish tax or a lower U. S. tax on pensions and SS.
Unless a lower Spanish or U. S. tax rate is imposed on them, I will probably have to abandon my dream or moving to Andalusia and will have to settle for the
west coast of Florida.
Thanks in advance for your input!
Reason : Political comment/opinion
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