Does anyone have a link to a guide that can help me calculate what I’d pay in taxes if I moved there? I’m a retiree on a pension and Social Security.
Anchorless offers a consultation for 249 euros, but I’d like to have an idea before I proceed.
Joni
In short, you’ll likely be taxed more in Portugal than in the USA. However, the USA and Portugal have a tax treaty, so any taxes you pay in Portugal will be credited against your US taxes. Because you’re paying more in Portugal, you likely won’t have to pay additional taxes in the USA. There are, of course, many exceptions and specific cases to consider. Here’s a guide:
Thank you, this is exactly what I was looking for. I was so sad to think I couldn’t move to Portugal, but now I’ll at least consult a tax official. I was thinking I had to pay the Portugal rate on top of the US rate.
Might I ask if you have personal experience with a tax consultant?
Joni
Hi Joni - We are somewhat in the same situation - close to retirement. Passive income (rental income, dividends, pensions) does not qualify for the foreign earned income tax exclusion. Also, per advice of several expats, one may need to establish residency in a non income tax state like Nevada or Texas before making the final move. One said they ended up paying state tax for five years. I’m not exactly sure why that is - but I’m assuming it’s because they are still considered residents of their U.S. state until such time when permanent residency is established. In any case, we are also looking for good advice. If I run across someone I think is trustworthy I will let you know.
Thank you! I’m also trying to open a Portuguese bank account, looking for a service, since it appears I can’t do it online.
When do you plan to make the move?