Managing US and Euro-sourced income taxes

Is it legal, for a US citizen with GV rights, to live in PT less than half the year, and live in, e.g., Spain less than half the year, and visit the US for, say, 3 weeks a year, and pay income tax only to the US?
If necessary for this result, we could have places in PT and in Spain which were rented out often during the year. Or, based on similar topics, maybe this works only if we DON’T own RE in PT or Spain?

That is my current plan, more or less. Since I had bought a home in PT prior to October, I can also change my mind and do the NHR late next year. My US residence is also in a state without income taxes (my child’s address). I’m leaning mostly on dividends, which are not taxed under NHR in PT. But my social security would take a hit 11 years from now. I can decide then where my heart lies and what my money buys.

Yes, perfectly legal.

Your suggesting that owning rental properties was an option will complicate things, not simplify. Having rental properties in either PT or SP will open you up to having local tax liabilities and that income would also have to be reported to Uncle Sam.

Thanks for your comment. Is it better, for purposes of legally avoiding income tax, to own RE in two European countries, but NOT rent them out when we’re gone?

I’m not sure, but I don’t think so. The GV gives the right to live in PT, but that does not make one anything more than a tourist in the rest of the Schengen countries. So living in PT for less than 183 days certainly works for a GV person. Bit once you leave PT, you’re a tourist and (I believe) are subject to the EU 90-day limit (at which point you must leave the Schengen area for 90 days. I am no expert and confess that I find it confusing how one handles the Schengen rule alongside the residence visa. I’ll follow this thread to see if there are more and better thoughts on the topic.

Thanks, Ed. The party line (stated broadly online) is that once you have the GV in PT, you can live in any Schengen country. I’ve never read that it can be for only 90 days. I think the ability (via the GV) to live anywhere in Europe is why other Europe nations pressured PT so hard to limit or end the GV…

You only can once you have pt citizenship

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GV just means you are a resident of PT and have a right to reside in PT as long as you want. Residency only gives you Schengen rights to the rest of Europe (which you might have already had if you are from the US). You do not have the right to reside in the rest of Europe any more than anyone else entering any European country on Schengen rights, e.g. no more than 90 days in any 180 day period etc.

Schengen being what it is, you are unlikely to ever be called on it except in some fringe situation, but that gets into how you choose to deal with the situation at hand. There are other threads on this board where it is discussed more. Obviously you could choose to spend a week in the Maldives and keep both sides under 180 days, but you are going to be shuttling a lot to keep under the 90 days in Spain. Maybe if you get a place in Tavira and another in Seville?

In any case, you need to be careful about you handle whatever living arrangements you may make in Spain or wherever and be aware you have no particular right to residence there.

The GV is an issue politically because there are a ton of people in the world who do not have Schengen rights, and this is a way to buy Schengen rights - and because the path to citizenship is (on paper) relatively simple and does not require much in the way of boots-on-ground. This is the real objection - being able to be European without actually becoming European.

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Thank you for that point Garrett.

Thanks Jeff.