| Retiring Abroad Probably Won't Save You on Taxes... As they approach retirement, many baby boomers are considering living outside of the U.S. to take advantage of lower or nonexistent real estate taxes abroad. However, value-added taxes (VATs) and sales taxes most often offset any money you would save on domestic real estate taxes. Also, as far as income tax goes, it is tough to avoid taxes abroad. Given that the likely source of retirement income is from pensions, 401k plans or investment income (interest and dividends), as a U.S. citizen you are subject to U.S. taxation on that income whether you live in Boise or Budapest. If you have further questions on this issue, please contact our offices. ARTICLE TAKEN FROM February 2006 ISSUE OF PROFIT ABILITY ( VIEW NEWSLETTER | SUBSCRIBE ) |



