Is a Roth IRA Tax-Free in Spain, Portugal or the Netherlands?
Only on the US side. A qualified Roth IRA withdrawal stays tax-free for the IRS, but none of the three US tax treaties expressly protects it. Spain taxes the growth as savings income at 19% to 30%. Portugal has no ruling. Dutch Box 3 taxes the balance by default.
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The more useful headline: the money you put in is not the problem. Spain's own binding ruling says your contributions come back out untaxed. What's exposed is the growth, and how much depends on the country and on when you make your big Roth decisions.
Why doesn't the Roth's tax-free status travel with you?
Because tax-free is a US rule, and tax treaties only recognize it where they say so. Your new country taxes you as a resident under its own law, and the IRS keeps taxing you as a citizen no matter where you live.
On the US side nothing changes. The IRS says Roth withdrawals of contributions and earnings are not taxed if the distribution is qualified: the account has been open at least 5 years and you are 59½, disabled, deceased (for your heirs) or using up to $10,000 (lifetime limit) toward a first-time home purchase.
On the European side, every US income tax treaty carries a saving clause that lets the US tax its citizens "as if the Convention had not come into effect" (Article 1(3) of the US–Spain treaty, Article 24(1) of the US–Netherlands treaty, and paragraph 1(b) of the protocol to the US–Portugal treaty). Nothing in any of the three treaties tells Spain, Portugal or the Netherlands to exempt a Roth distribution.
Some US treaties do: Creative Planning International lists Canada, France and the UK among the countries that recognize Roth accounts. Spain, Portugal and the Netherlands are not on that list.
The IRS and three European tax authorities agree on exactly one thing: your Roth exists. What it is is where they part ways.
How do the three countries compare?
| Spain | Portugal | Netherlands | |
|---|---|---|---|
| Roth withdrawals | Growth taxed as savings income, 19%–30% (2026) | No ruling; 28% flat or 12.5%–48% progressive, depending on category | Not taxed as income by default |
| Roth balance | Counts toward Spain's annual wealth tax (DGT V1291-22) if your net assets exceed your region's exemption; reportable on Modelo 720 | No annual tax found | Taxed yearly in Box 3 by default |
| Contributions | Come back untaxed (DGT V1291-22) | Arguably untaxed under CIRS Article 54 | Not taxed on withdrawal |
| How settled? | Binding rulings from 2017 and 2022 | Unsettled, no official guidance found | Default position, no published case law |
| Traditional IRA / 401(k) | Taxed in Spain on payout | Taxed in Portugal on payout | Outside Box 3; payouts taxed in Box 1 |
| US Social Security | Spain taxes it; US may also tax | Portugal taxes it; US may also tax | Taxable only in the US |
How does Spain tax a Roth IRA?
Spain taxes the growth, not your contributions, and it does so when you withdraw. This is the one country of the three with a direct answer from the tax authority.
Two binding consultations from the Dirección General de Tributos (DGT) carry the weight:
- V1133-17 (10 May 2017) looked at a future Spanish resident with a Traditional IRA and a Roth IRA. The DGT found that neither is expressly covered by any article of the 1990 treaty, so both fall under Article 23 (Other Income): taxable only in Spain for a Spanish resident. The US may still tax a US citizen under Article 1(3).
- V1291-22 (7 June 2022) went further for a US citizen already resident in Spain. Roth distributions are rendimientos del capital mobiliario under Article 25.3.a) of the IRPF law, and the taxable amount is the difference between what you receive and the contributions you made.
Capital income from life-insurance-type products sits in Spain's base del ahorro (savings base), which the Agencia Tributaria taxes on this scale for 2025 and 2026:
| Savings base | Rate |
|---|---|
| Up to €6,000 | 19% |
| €6,000 to €50,000 | 21% |
| €50,000 to €200,000 | 23% |
| €200,000 to €300,000 | 27% |
| Over €300,000 | 30% |
Some English-language guides still quote 28% as the top rate. The Agencia Tributaria's manual shows 30% above €300,000.
A worked example: you withdraw €40,000, of which €16,000 is contributions. Spain taxes €24,000: €1,140 on the first €6,000 and €3,780 on the remaining €18,000, so about €4,920, before any other savings income you have that year. The ruling doesn't spell out how contributions are allocated across partial withdrawals, so ask a Spanish adviser.
No double-tax credit applies. Under Article 24(1)(a) of the treaty, Spain only deducts US tax on income the US may tax "other than solely by reason of citizenship." A qualified Roth distribution has no US tax anyway, so the Spanish tax on it is simply the tax.
Reporting is separate from paying. V1291-22 says the Roth goes on Modelo 720, Spain's foreign-assets return, as a product with a surrender value. The Agencia Tributaria's FAQ applies the same logic to foreign pension plans that allow redemption. Filing is triggered when a category of foreign assets exceeds €50,000, and you refile when a category grows by more than €20,000. Some practitioners still describe Roth reporting as fact-specific, but the ruling is the official position.
The Roth also counts for wealth tax. The same ruling includes both the IRA and the Roth in Spain's wealth tax (Impuesto sobre el Patrimonio) and says the exemption for Spanish pension plans does not apply to them. The ruling doesn't spell out how the Roth is valued for that tax. Whether it costs you anything depends on your total net assets and your region's rules, so raise it with a Spanish adviser.
The payoff for filing a Spanish return: a retirement where the bakery, the pharmacy and the plaza are a short walk away. Our Spain vs Portugal retirement comparison covers the visa side, including the Non-Lucrative Visa.
How does Portugal tax a Roth IRA?
Nobody knows for certain. We found no binding ruling (informação vinculativa) from the Autoridade Tributária on Roth IRAs, and Portuguese practitioners argue for different classifications.
The question is which category of the Código do IRS (CIRS) a Roth distribution falls into:
| Classification | How it's taxed (2026) | Why it matters |
|---|---|---|
| Category H (pensions) | Progressive rates from 12.5% to 48% (CIRS Article 68, Lei 73-A/2025) | The capital-repayment part can be deducted under Article 54 |
| Category E (capital income) | 28% autonomous rate (CIRS Article 72), or opt to aggregate at progressive rates | Foreign Category E income can be exempt under IFICI |
Article 54 CIRS is the argument for your contributions. For annuities and complementary pension schemes, the portion that repays capital is deducted before tax. Where that portion can't be identified, 85% of the payment is deducted. Whether a Roth counts as that kind of scheme is exactly what isn't settled. Fresh Legal treated Roth payouts as pension income in 2025; its August 18, 2026 update calls Category H versus E an open question.
IFICI doesn't cover pensions. Portugal's IFICI regime (the 10-year successor to NHR) exempts most foreign-source income, but the Portal das Finanças FAQ says plainly: exempt "exceto no caso de rendimentos da categoria H." IFICI is also tied to qualifying professional activity, so it's generally not a retiree regime. If your Roth is ever treated as Category H, IFICI won't shelter it.
Traditional accounts and Social Security. Under Article 20 of the US–Portugal treaty, private pensions for past employment are taxable only in your country of residence. US Social Security may be taxed by the US, and Portugal taxes it as your country of residence, with a deduction for US tax under Article 25. The saving clause still lets the US tax you as a citizen.
The Portugal move-year detail: under Portugal's partial-residence rule, you become resident from your first day of presence once the residence tests are met. Anything you do with your Roth before that date is outside the Portuguese tax year.
Portugal rewards patience with long lunches nobody calls a meeting. If Portugal is the plan, start with the D7 visa guide.
How does the Netherlands tax a Roth IRA?
By default the Netherlands doesn't tax your Roth withdrawals, but it does tax the account every year. Dutch practitioners describe the Belastingdienst's default as treating a Roth as an investment asset, not a pension, which puts the balance in Box 3.
Box 3 taxes a deemed return, not what you earned. The Belastingdienst's 2026 figures:
| Box 3, 2026 | Figure |
|---|---|
| Tax-free allowance (heffingsvrij vermogen) | €59,357 per person |
| Deemed return on investments | 6.00% (final) |
| Tax rate | 36% |
A worked example: a single person whose only asset is a €150,000 Roth. The deemed return is €9,000. About 60% of the wealth sits above the allowance, so roughly €5,440 is taxed at 36%: about €1,960 a year. A Roth under the allowance, with nothing else, generates no Box 3 tax.
In a year when your actual return is below the deemed 6.00%, the counter-evidence scheme (tegenbewijsregeling) lets you be taxed on the actual return instead. The Belastingdienst makes that adjustment in your annual income tax return, not the provisional assessment, and "actual return" includes unrealised gains. See our Box 3 guide.
It's a default, not settled law. Portsight Tax sets out two arguments against it: that a Roth resembles a Dutch net-funded pension (netto-pensioen), which is exempt from Box 3, and that the treaty's pension provisions may shield it. Portsight also notes there is no published case law on Roth IRAs in Box 3. TaxSavers describes the same default. If your Roth is large, raise it with a Dutch adviser before your first M form.
Traditional IRA and 401(k) get the better deal here. They generally sit outside Box 3, and payouts are taxed as Box 1 income. The treaty backs this: Article 19(1) makes pensions and annuities taxable only in your country of residence.
Social Security is simpler than in Spain or Portugal. Article 19(4) makes US Social Security taxable only in the US, and the saving clause doesn't override it.
The full Box 3 calculation is in our Box 3 guide for US brokerage accounts, and DAFT holders should start with the 2026 DAFT guide. In return for that line on your assessment, retirement in the Netherlands can mean cycling to the Saturday market.
Should you convert or withdraw before you become a tax resident?
The Roth decisions worth making are usually made before residency attaches. A conversion done while you are only a US tax resident is a US-only event: US tax, and no European claim on it. Creative Planning International and CB Wealth Advisors both note the math changes after the move, because the new country may not honor the Roth on the way out.
Each country draws the start line differently:
| When you become resident | What that means for timing | |
|---|---|---|
| Spain | More than 183 days in the calendar year, your main economic base is in Spain, or (by presumption) your spouse and minor children live there | Resident for the whole calendar year, with no split year. A March conversion in a year you arrive in June can land in a Spanish tax year. |
| Portugal | From your first day of presence, once the tests are met | Resident for part of the year. The date you arrive matters. |
| Netherlands | Based on facts and circumstances | The move year is filed on the M form (migration return), which covers the part of the year before and after you arrive. |
Before you move:
- Gather your contribution history. Spain's ruling taxes the difference between withdrawals and contributions, and Portugal's Article 54 argument rests on the same split. Year-end statements and your US 1040 records are the evidence.
- Finish planned conversions in a clean year. For Spain especially, that means a calendar year in which you won't be resident.
- Don't empty the Roth by reflex. Withdrawing everything ends decades of US tax-free growth to avoid a tax that, in Spain, starts at 19% on the growth only. Model it both ways.
- Ask about the Roth by name. Its treatment diverges from your 401(k) in all three countries.
For the US filing obligations that follow you regardless (FEIE, the Foreign Tax Credit, FBAR), see our US expat tax guide. If you also hold a taxable account, read whether to keep your US brokerage account.
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Frequently Asked Questions
Is a Roth IRA taxed in Spain?
Yes, on the growth, and the balance can also count for wealth tax. DGT binding consultation V1291-22 (2022) classifies Roth distributions as capital income under Article 25.3.a) of the IRPF law, taxed in the savings base at 19% to 30% in 2026 on the difference between what you receive and what you contributed. The same ruling includes the Roth in Spain's wealth tax (Impuesto sobre el Patrimonio). Whether it costs you anything depends on your total net assets and your region's rules, so raise it with a Spanish adviser.
Do I have to report my Roth IRA on Modelo 720?
According to DGT ruling V1291-22, yes. It treats a Roth as a product with a surrender value that belongs on Modelo 720. Filing is required when a category of foreign assets exceeds €50,000, and again when that category grows by more than €20,000.
Does Portugal's IFICI regime exempt Roth IRA withdrawals?
Only if the withdrawal is treated as Category E capital income, and that classification is unsettled. The Portal das Finanças says IFICI exempts foreign income except Category H pensions. Pension treatment would mean progressive rates of 12.5% to 48%, with the capital-repayment part deductible under CIRS Article 54 (85% where it can't be separated).
Is my Roth IRA in Dutch Box 3?
By default, yes. Dutch practitioners describe the Belastingdienst treating a Roth as an investment asset, not a pension. In 2026 that means a 6.00% deemed return taxed at 36% above a €59,357 personal allowance, or about €1,960 a year on a €150,000 Roth for a single person with no other assets, less in a year when your actual return is lower. There is no published case law settling it.
How is US Social Security taxed in Spain, Portugal and the Netherlands?
In Spain and Portugal, your country of residence taxes it, the US may also tax it, and the residence country gives a deduction for US tax. In the Netherlands, Article 19(4) of the treaty makes US Social Security taxable only in the US.
Should I do a Roth conversion before moving to Europe?
Converting while you are only a US tax resident keeps it a US-only event. For Spain, that means finishing conversions in a calendar year in which you won't be resident (more than 183 days there, your economic base there, or your spouse and minor children living there), because Spanish residency covers the whole year. Model it with a cross-border adviser first.
Disclaimer: This guide is for informational purposes only and does not constitute legal or immigration advice. Requirements change frequently — always verify current requirements with the relevant consulate or a qualified immigration lawyer before applying. It is not tax advice either: the worked figures are illustrative 2026 arithmetic, and Roth treatment in all three countries should be confirmed with a cross-border US tax adviser before you convert, withdraw or move.
Sources:
Official sources
- Dirección General de Tributos, binding consultation V1291-22 (7 June 2022), Roth IRA and IRA held by a Spanish resident, text via https://www.pratsglas.com/es/consulta-vinculante/irpf-v1291-22-07062022
- Dirección General de Tributos, binding consultation V1133-17 (10 May 2017), IRA withdrawals under the US–Spain treaty, text via https://www.iberley.es/resoluciones/resolucion-vinculante-dgt-v1133-17-10-05-2017-1470889
- Agencia Tributaria, "Gravamen estatal" of the savings base (Manual práctico de Renta 2025): https://sede.agenciatributaria.gob.es/Sede/ayuda/manuales-videos-folletos/manuales-practicos/irpf-2025/c15-calculo-impuesto-determinacion-cuotas-integras/gravamen-base-liquidable-ahorro/gravamen-estatal.html
- Agencia Tributaria, "Gravamen autonómico" of the savings base (Manual práctico de Renta 2025): https://sede.agenciatributaria.gob.es/Sede/ayuda/manuales-videos-folletos/manuales-practicos/irpf-2025/c15-calculo-impuesto-determinacion-cuotas-integras/gravamen-base-liquidable-ahorro/gravamen-autonomico.html
- Agencia Tributaria, "Integración y compensación de rentas en la base imponible del ahorro": https://sede.agenciatributaria.gob.es/Sede/ayuda/manuales-videos-folletos/manuales-practicos/irpf-2025/c12-integracion-compensacion-rentas/reglas-integracion-compensacion-rentas/integracion-compensacion-rentas-base-imponible-ahorro.html
- Agencia Tributaria, "Residencia habitual en territorio español" (Article 9 LIRPF): https://sede.agenciatributaria.gob.es/Sede/ayuda/manuales-videos-folletos/manuales-practicos/irpf-2024/c02-irpf-cuestiones-generales/sujecion-irpf-aspectos-personales/residencia-habitual-territorio-espanol.html
- Agencia Tributaria, residents with US income (treaty Articles 20 and 21): https://sede.agenciatributaria.gob.es/Sede/en_gb/ayuda/manuales-videos-folletos/folletos/folletos-residentes-rentas-extranjeras/estados-unidos.html
- Agencia Tributaria, Modelo 720 FAQs, "¿Existe obligación de informar sobre...?": https://sede.agenciatributaria.gob.es/Sede/todas-gestiones/impuestos-tasas/declaraciones-informativas/modelo-720-decla_____sobre-bienes-derechos-extranjero_/preguntas-frecuentes/existe-obligacion-informar-sobre___.html
- Agencia Tributaria, Modelo 720 FAQs, "Frecuencia en la presentación de la declaración": https://sede.agenciatributaria.gob.es/Sede/todas-gestiones/impuestos-tasas/declaraciones-informativas/modelo-720-decla_____sobre-bienes-derechos-extranjero_/preguntas-frecuentes/frecuencia-presentacion-declaracion.html
- IRS, Income Tax Convention with Spain (1990), with Protocol: https://www.irs.gov/pub/irs-trty/spain.pdf
- IRS, Income Tax Convention with Portugal (signed September 6, 1994), with Protocol: https://www.irs.gov/pub/irs-trty/portugal.pdf
- IRS, Tax Convention with the Netherlands (signed December 18, 1992), with Protocols: https://www.irs.gov/pub/irs-trty/nether.pdf
- IRS, Roth Comparison Chart: https://www.irs.gov/retirement-plans/roth-comparison-chart
- IRS, Roth IRAs: https://www.irs.gov/retirement-plans/roth-iras
- IRS, Publication 590-B, Distributions from Individual Retirement Arrangements (IRAs): https://www.irs.gov/publications/p590b
- Portal das Finanças, IFICI FAQs: https://info.portaldasfinancas.gov.pt/pt/apoio_contribuinte/questoes_frequentes/pages/faqs-01018.aspx
- Portal das Finanças, CIRS Article 54 (Distinção entre capital e renda): https://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributarios/cirs_rep/Pages/irs54.aspx
- Portal das Finanças, CIRS Article 68 (Taxas gerais): https://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributarios/cirs_rep/Pages/irs68.aspx
- Portal das Finanças, CIRS Article 72 (Taxas especiais): https://info.portaldasfinancas.gov.pt/pt/informacao_fiscal/codigos_tributarios/cirs_rep/Pages/irs72.aspx
- Portal das Finanças, FAQ on residência parcial: https://info.portaldasfinancas.gov.pt/pt/apoio_contribuinte/questoes_frequentes/pages/faqs-00505.aspx
- Belastingdienst, "Hoe is het box 3-inkomen op mijn voorlopige aanslag 2026 berekend?": https://www.belastingdienst.nl/wps/wcm/connect/nl/box-3/content/berekening-box-3-inkomen-2026
- Nederland Wereldwijd, tax return for the year you move to the Netherlands: https://www.nederlandwereldwijd.nl/belastingaangifte-buiten-nederland/jaar-van-verhuizing-nederland
Corroborating sources
- CB Wealth Advisors, "The Roth IRA in Spain: What Americans Get Wrong Before They Move" (Aug 2026): https://cbwealthadvisors.com/resources/the-roth-ira-in-spain-what-americans-get-wrong-before-they-move/
- International Tax Legal Spain, "How Roth IRAs Are Taxed in Spain": https://www.internationaltaxlegalspain.com/how-roth-iras-are-taxed-in-spain-under-the-tax-agreement-with-usa
- Pellicer Heredia, "Modelo 720 en España 2026": https://www.pellicerheredia.com/modelo-720-declaracion-de-bienes-en-el-extranjero/
- Fresh Legal, "Roth IRA Taxation in Portugal 2026" (Aug 18, 2026): https://fresh-legal.com/blog/roth-ira-taxation-portugal-2026
- Fresh Legal, "Understanding the Taxation of ROTH IRA in Portugal" (Jan 2025): https://fresh-legal.com/blog/post.html?slug=understanding-the-taxation-of-roth-ira-in-portugal
- Taxbordr, "Portugal Pension Tax Guide" (updated Sept 2026): https://taxbordr.com/guides/portugal-pension-tax-guide/
- Portsight Tax, "Roth IRA and Box 3 in the Netherlands": https://www.portsighttax.com/en/insights/roth-ira-and-box-3-in-the-netherlands-when-is-it-taxed----and-when-not
- Portsight Tax, "Relocating to the Netherlands from the USA": https://portsighttax.com/en/insights/relocating-to-the-netherland
- TaxSavers, "Taxation of US pension in the Netherlands": https://taxsavers.nl/taxation-of-us-pension-in-the-netherlands/
- Creative Planning International, "Expat Roth Conversions Q&A": https://creativeplanning.com/international/insights/investment/expat-roth-conversions-qa/