Tax on money withdrawn from Roth 401(k) and Roth IRA when living outside the United States and over 59.5-year-old

Question

I am over 59.5 year-old and live in the United States. I contributed to Roth 401(k) as well as Roth IRA. Money withdrawn from Roth 401(k) or Roth IRA is not taxed in the United States as I am over 59.5 year-old (and since one contributes with post-tax money to Roth 401(k) and Roth IRA, unlike the traditional 401(k) or the traditional IRA).

I'm considering moving abroad. Which countries tax money withdrawn from Roth 401(k) or Roth IRA, and which countries do not?

Answer 1

I found this interesting list https://money.usnews.com/money/blogs/on-retirement/2011/12/05/the-most-tax-friendly-places-to-retire-abroad (mirror):

Argentina

• Income tax: 9 to 35 percent on worldwide income
• Sales tax: 21 percent
• Property tax: None in Buenos Aires; 1.2 to 1.5 percent outside Buenos Aires
• Capital gains tax: None
• Tax on foreign retirement income? Yes

Belize

• Income tax: Up to 45 percent on income earned in Belize only
• Sales tax: 12.5 percent
• Property tax: 1 to 1.5 percent
• Capital gains tax: None
• Tax on foreign retirement income? No

Colombia

• Income tax: Up to 33 percent on worldwide income
• Sales tax: 16 percent
• Property tax: Up to 1.6 percent
• Capital gains tax: 33 percent
• Tax on foreign retirement income? Yes

Costa Rica

• Income tax: Up to 25 percent on income earned in Costa Rica only
• Sales tax: 13 percent
• Property tax: .25 percent
• Capital gains tax: None
• Tax on foreign retirement income? No

Croatia

• Income tax: 12 to 40 percent on worldwide income
• Sales tax: 23 percent
• Property tax: .70 euro to 1 euro per square meter
• Capital gains tax: 25 to 40 percent
• Tax on foreign retirement income? Yes

Ecuador

• Income tax: Up to 35 percent on worldwide income
• Sales tax: 12 percent
• Property tax: .25 to .5 percent
• Capital gains tax: Taxed as ordinary income
• Tax on foreign retirement income? No

France

• Income tax: 17.8 to 53.3 percent on worldwide income
• Sales tax: 19.6 percent
• Property tax: The two property-related taxes amount to about .2 percent
• Capital gains tax: 31.3 percent
• Tax on foreign retirement income? Yes

Ireland

• Income tax: Up to 41 percent on worldwide income
• Sales tax: 21 percent
• Property tax: None
• Capital gains tax: 25 percent
• Tax on foreign retirement income? Yes

Italy

• Income tax: Up to 43 percent on worldwide income
• Sales tax: 20 percent
• Property tax: .4 to .9 percent
• Capital gains tax: Taxed as ordinary income
• Tax on foreign retirement income? Yes

Malaysia

• Income tax: Up to 26 percent on income earned in Malaysia only
• Sales tax: 5 percent
• Property tax: 6 percent
• Capital gains tax: None
• Tax on foreign retirement income? No

Mexico

• Income tax: Up to 30 percent on worldwide income
• Sales tax: 16 percent
• Property tax: .275 to 1.35 percent
• Capital gains tax: Taxed as ordinary income
• Tax on foreign retirement income? Yes

Panama

• Income tax: Up to 30 percent on income earned in Panama only
• Sales tax: 7 percent
• Property tax: Up to 2.1 percent (some properties are exempt)
• Capital gains tax: 10 percent
• Tax on foreign retirement income? No

Philippines

• Income tax: 5 to 32 percent on worldwide income
• Sales tax: 12 percent
• Property tax: 1 to 2 percent
• Capital gains tax: 6 percent
• Tax on foreign retirement income? No

Spain

• Income tax: 24 to 49 percent on worldwide income
• Sales tax: 18 percent
• Property tax: 3.3 to 3.4 percent
• Capital gains tax: 19 to 21 percent
• Tax on foreign retirement income? Yes

Thailand

• Income tax: Up to 37 percent on income remitted to Thailand
• Sales tax: 7 percent
• Property tax: None if owner-occupied
• Capital gains tax: None
• Tax on foreign retirement income? No

Uruguay

• Income tax: Up to 30 percent on income earned in Uruguay only
• Sales tax: 22 percent
• Property tax: .25 to 1 percent
• Capital gains tax: 12 percent
• Tax on foreign retirement income? No

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One source confirming for Philippines: http://www.investopedia.com/ask/answers/052615/what-are-financial-benefits-retiring-philippines.asp :

You are exempt from income taxes on annuities and pensions