US Social Security while living in Peru

Answers to your qestions about moving to, and living in, Peru,
filmsmurf
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US Social Security while living in Peru

Postby filmsmurf » Sun Aug 18, 2019 7:50 am

When we relocate to Peru, we will eventually begin collecting Social Security as we plan on keeping our US citizenship. Plus I may continue to have business income that will feed my checking account in the states.
Does anyone know how it works if we continue to bank at an American Bank and simply draw our money in Peru? We bank with USAA who is very accustomed to dealing with people living all over the world, so I'm sure there won't be any problem getting to our money.
It seems to me that the Peruvian government wouldn't really have any way to monitor or tax that income. Are there any tax implications that we aren't thinking of?
If anyone has experience with income from the United States while living in Peru, any advice would be most helpful. Thank you so much


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Re: US Social Security while living in Peru

Postby jumpinjack » Sun Aug 18, 2019 9:00 am

filmsmurf wrote:It seems to me that the Peruvian government wouldn't really have any way to monitor or tax that income. Are there any tax implications that we aren't thinking of?

Every time you you stick that ATM card into an ATM, along with a hefty fee.
filmsmurf
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Re: US Social Security while living in Peru

Postby filmsmurf » Sun Aug 18, 2019 9:21 am

ok, thanks for that. So they tax heavily any money you pull from a bank?

Do you know what that rate is?
jumpinjack
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Re: US Social Security while living in Peru

Postby jumpinjack » Sun Aug 18, 2019 1:01 pm

Not sure whose hands are on the fees. It has been a while since I now have a bank account but it is somewhere north of 5%. Another thing to watch, those fees often times do not show the additional fees your bank will charge you have to wait for your statement for that shock.
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Alan
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Re: US Social Security while living in Peru

Postby Alan » Sun Aug 18, 2019 2:51 pm

Those are bank fees, not taxes.
jumpinjack
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Re: US Social Security while living in Peru

Postby jumpinjack » Sun Aug 18, 2019 3:33 pm

Didn't I make that clear "fees" and not taxes?
filmsmurf
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Re: US Social Security while living in Peru

Postby filmsmurf » Sun Aug 18, 2019 4:02 pm

lol. Grumpy much?
jumpinjack
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Re: US Social Security while living in Peru

Postby jumpinjack » Sun Aug 18, 2019 4:02 pm

filmsmurf wrote:ok, thanks for that. So they tax heavily any money you pull from a bank?

Do you know what that rate is?

To save some FEES you can open a bank account in Peru and have direct deposit from the US but you need a bank account and to have a bank account you need legal resident status a tourist visa will not cut it. Have you a plan there?
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Re: US Social Security while living in Peru

Postby carloso » Wed Aug 21, 2019 4:22 pm

None that I know of. I have been living here for two years and keep banking with BoA. I update my travel notices every couple of months to avoid blockages. Other than the ATM fees, no need to worry about anything else. Now those fees are not hefty, in my opinion, but vary per financial institution and can add up. I usually withdraw at Scotiabank and pay less than $3 for S/.400, or about 2.5%.

I was recently at Western Union sending money and the person next to me was receiving 1k USD from another country. The teller explained that after 1k, a government tax applied. The tax was S/.0.1, about 3-4 USD cents, so nothing to worry about there.

Finally, if you have a credit card from your financial institution that has no foreign transaction fees, or can obtain one from a different bank before moving, you can use that for everyday expenses so as to minimize your reliance on cash and avoid withdrawal fees, then just pay your monthly balance online from your main account.

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