0:02 the complexities of Roth IRA taxation in
0:06 Spain welcome to Spain Guru for many US
0:08 citizens Roth IRAs are a Cornerstone of
0:11 retirement planning known for their
0:13 taxfree growth and withdrawals but what
0:14 happens when you become a tax resident
0:16 in Spain let's dive into the
0:18 nitty-gritty of how these accounts are
0:20 treated under Spanish tax law and what
0:22 that means for you in Spain Ro IR R
0:24 don't receive the tax fee treatment that
0:27 enjoy in the US instead they are viewed
0:29 similarly to regular brokerage accounts
0:31 this means are facing a situation where
0:33 your withdrawals and the accounts growth
0:35 could be taxed which is a significant
0:38 shift from the US approach so how do you
0:40 declare your Roth array to the Spanish
0:42 authorities there are a couple of
0:44 approaches first some choose to declare
0:46 dividends and capital gains annually
0:49 paying taxes on this as they would on
0:52 any other investment income and second
0:53 others might declare the Total
0:56 distribution and withdrawal as income
0:59 subtracting a calculated cost basis
1:01 though this requires careful calculation
1:03 to ensure compliance it's also worth
1:05 noting that there's a sentiment among
1:08 expats that it might be easy to forget
1:11 about declaring a Roth IRA however with
1:13 Spain's rigorous STX system overlooking
1:15 such an obligation could lead to
1:17 complications down the line our
1:19 community members have shared vared
1:22 strategies some advice withdrawing all
1:24 funds from your Roth ARA into a regular
1:26 brokerage account before becoming a tax
1:29 resident in Spain others suggest using
1:31 your Roth IR aray for estate planning
1:33 leaving the funds to grow tax-free in
1:36 the US and using other assets to cover
1:39 living expenses in Spain a Spain Guru
1:40 Community member noted that recent
1:42 amendments to the tax treaty between
1:44 Spain and the US have included Roary
1:46 Rays among the types of accounts
1:48 considered pension accounts this
1:50 classification has tax implications that
1:53 could affect your financial planning
1:55 given the complexity and the high stakes
1:57 of getting it wrong Consulting with a
1:59 tax adviser who is well versed into both
2:02 us Spanish tax law is essential and of
2:04 course you can find them on Spang
2:06 guru. understanding the taxation of Roth
2:09 IR race in Spain is essential for us exp
2:11 pass the Dual nature of these accounts
2:13 as both investment and pension sources
2:15 in Spain complicates matters but with
2:17 the right guidance and strategic
2:18 planning you can navigate this water
2:21 successfully oh and one more thing
2:22 apparently YouTube says you're going to
2:24 love watching this video right here I
