[International] I plan to retire to Mexico later in life: How do I avoid getting double taxed by the US and MX on my Social Security, Brokerage, and IRA income?
Title says it all. Getting taxed by both would take out a big chunk and cost money, and saving money is one of the main reasons I want to retire to Mexico.
Posted Feb 27, 2021, 6:58 PM UTC
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Assuming that you are a US citizen ... you will receive a credit for taxes paid to Mexico, so there won't be any concerns of double taxation.
Under the US/Mexico tax treaty your retirement income will only be taxable in the US.
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Would the same be said for the funds withdrawn from my taxable brokerage account ? (Yes I am US citizen)
Dunno, hence why I didn't mention it specifically. Though from what I read, cap gains would be taxable in both counties, but then again you can take a credit for foreign tax paid on your US return. But, I don't know for certain.