Decision 3 · Week 3 · Wed Nov 18
Do I still pay US taxes if I retire abroad?
SHORT ANSWERYes. US citizens file US returns under the same rules wherever they live, and are taxed on worldwide income.
Social Security, pensions and IRA withdrawals stay taxable the same way they would be at home. The Foreign Earned Income Exclusion does not apply to them.
If your new country also taxes that income, the Foreign Tax Credit can reduce the double hit. Whether a tax treaty helps depends on the country. Colombia has none with the US.
Foreign bank accounts add reporting duties, even when no tax is owed.
Week 3 counts taxes in the total value of each place.
Sources
- U.S. citizens and resident aliens abroad · IRS
- Foreign earned income exclusion: What is foreign earned income? · IRS
- Foreign tax credit · IRS
Written and reviewed by Todd Allyn, Founding Director, Sovereo Intelligence
Facts checked Oct 6, 2026 · Next review by Apr 6, 2027
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