Retirment In Spain: Income TaxYour retirement pension is considered earned income, and thus, foreign pensioners have to pay Income Tax, as long as they surpass the minimum wage threshold and are therefore required to file their income tax return.
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The US is one of the few countries that taxes its citizens on their worldwide income, regardless of where they live or earn their income. This means that American expats are potentially subject to double taxation - once by the country where they earn their income, and again by the United States.
You may wonder why U.S. citizens pay taxes on income earned abroad. U.S. taxes are based on citizenship, not country of residence. That means it doesn't matter where you call home, if you're considered a U.S. citizen, you have a tax obligation.