Roth IRA or Roth 401k taxation

Hi all US expats and Tax accountants!
I'm a US and as well as EU citizen (non-Spain) living in US and planning to retire in Spain.
I have researched a lot online and YouTube videos but I could not find any concrete reliable information about this:

1. If I retire in Spain as a full time resident, will my ROTH 401k and Roth IRA be taxed by Spain? If yes, how it will be treated (income, pension, brokerage) at what tax rates using about $50k a year with wife?
2. Since US will not Tax anything Roth, is there any agreement with Spain about taxation of Roth retirement accounts?
3. How is regular IRA and 401k taxed? As pension, income, brokerage with gains and at what cost base?
4. Is there any good online source for above information besides hiring tax accountants who sometimes give different information from each other?

Thank you for all reliable information!

I have same situation. We will appreciate any information on this issue. Thanks.

We just had our taxes done here in Spain for the first time and were surprised to discover the Roth IRA holds no advantage here. All income is taxed in Spain regardless of the type of account it is. The tax agreement with the US provides for any tax paid in the US to be credited to any tax obligation incurred in Spain, but since our Roth IRA distributions were not taxed in the US, we did not get much help in the way of that credit. I went to the website for the US Embassy (or was it Consulate?) that services the area where we live and found they have a list of lawyers who specialize in all kinds of things -- real estate transactions, taxes, etc. The lawyer who did our Spanish tax return had lived in the US and worked for one of the big CPA firms, so he fully understands both sides of our income tax issues. I cannot remember what else you asked in your post, but if you like, you can message me and I will be happy to relate our experience.

My question is regarding the wealth tax and your IRA. First, what autonomous region do you live in?  I'm trying to sort this out before we move and am a bit more worried about the wealth tax than income tax. (There is enough info out there to get at least an idea of income taxes.)

Thanks in advance.

This article provides a list of some of the regions that have wealth tax.

FYI, there is no wealth tax for Madrid.

Can you message me the contact information of the tax lawyer you used?

My question is regarding the wealth tax in Catalonia, Spain.  If you're a tax resident in Spain and have balances in a U.S. 401K and IRA but are not yet taking distributions, are the balances in those accounts still subject to the wealth tax?   I understand that distributions from these accounts are taxed as income.   Thank you.


Hi! I have the same question. If you have any response could you kindly let me know? I have done research in Italy since I have dual citizenship and in Italy only the “income and capital gains” are taxed. Pretty sure (not 100%) Spain works the same way. We are planning to split our time between the two countries. Thanks!!!

You should just withdraw from Roth IRA before moving to spain. I had moved to finland at age 38 to retire early. but sucks that once i need to start withdrawing from my roth IRA i will be taxed 30% instead of 0%. sure am getting free healthcare for  the  rest  of  my  life. but no way is it gonna add up to 300k assuming the ROI is 6% from age 38-59. in the last 15 years i went to the doctor once to give birth and that was in America.

I cashed out my Roth before becoming a tax resident.  Now it exists as a savings and is not taxed as a retirement fund.  I can draw off the savings as though it we're income but it won't be taxed as income.  I leave my regular IRA invested but don't withdraw any thing until the mandatory withdrawal age.

@Zdravich can you recommend what lawyer you used?



Could you please share the name contact information for your tax person in Spain.

Thank you!



Thr only downside I see with thus strategy is it will increase your networth for the wealth tax calculation. If left in the Roth account, even though  the gains are taxed as income, it would not be part of the wealth tax calculation as it is considered the same as a Spanish pension.


Fortunately or "unfortunately 😁" I am well below the wealth tax threshold so that it is not a concern.  But I suppose it could have an impact that you mentioned.


Hello!   I met with a tax advisor from Balcells Group and she confirmed that the U.S. 401K and IRA balances are NOT subject to the Spanish Wealth Tax.  Great news!


But the Roth IRA is not recognized as an IRA with respect to wealth tax?  Just traditional IRAs?  These are questions not answers 😁

@chasleslieb  I have a  traditional  IRA, didn't ask her about a Roth IRA.  Thanks