Taxes in Austria on US retirement?

Last activity 01 July 2022 by vaclaims

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bhuetherMember17 March 2018 14:08:49

Hi, I am planning to move to Vienna this summer. I pay taxes to US on my US military retirement income. Also I receive US veterans compensation which is non-taxable income in US. Also have Roth IRAs and brokerange accounts from which I am not drawing money, just putting in. I pay taxes on dividends in US on my brokerage accounts.

I know there is treaty between US and Austria regarding avoidance of dual taxation, curious what this implies for my tax situation in Austria. Ideally, would hope to not pay any taxes on these sources of income (especially since I am already paying US tax, and for the veternans compensation, since that has special non-taxable status in US I would hope that is an income source that would be protected from foreign taxation...), but understand things can often be non-ideal... So really curious to hear creative thoughts on how to avoid or minimize tax. I plan on doing some part time work in Vienna so Austria can expect the usual income tax on that, just trying to keep my retirement and veterans comp from seeing taxation beyond what I am already paying!

Thanks!

michellehrvatMember31 August 2018 16:41:41

In Austria you do have to declare your worldwide income, so it’s important to make sure you aren’t double taxed.

Article 18 & Article 19 will be your best friends here: https://www.irs.gov/pub/irs-trty/austria.pdf

They clearly state that these sources of income are only taxable in the states. We would recommend getting a tax consultant in Austria as it’s not straightforward to do this via the online tax portal (which is only available in German - no worries).

Remember that you’ll still have to file a US tax return when you move abroad, where you’ll need to declare your part-time work in Austria as well. Just pay attention that if you do freelancing/self-employment work, you’ll need to get signed up with the SVA - Austria’s social security insurance for self-employed individuals: https://www.svagw.at/cdscontent/?portal … de=content

This is important to make sure you can get a certificate of coverage stating that you pay self-employment taxes in Austria and therefore don’t need to pay them back in the US.

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vaclaimsNew member01 July 2022 20:54:55

@bhuether

Hello, I hope I'm not too late on this? I am an accredited VA claims agent living next door in Germany, and can assist/represent veterans before VA, especially those living overseas.

Regarding VA compensation and being "taxed" in Austria, I explain this in some detail on my website at; [link moderated] under "misc. overseas veterans topics" with supporting laws and documents.

I hope this helps!

Kevin Janey

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