Why Americans Shouldn't Move to Portugal? 🇺🇸 🇵🇹
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- Опубліковано 13 лип 2024
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Portugal is one of the most popular countries among out viewers, and many are relocating to this lovely country. It's one of the few countries in the world where you won't pay taxes on crypto income, and you can set yourself up to not pay any tax up to 10 years, under NHR regime.
However, despite the popular belief Portugal is just not a good option for Americans. As you probably know, America is the one of the few countries in the world that has citizenship based taxation.
Meaning no matter where you live in the world you'll be paying US taxes as an American.
Even though many other people can use Portugal as a part of their offshore tax strategy to not pay any taxes legally, this is simply not an option for Americans.
There is a mismatch between where Americans get benefits abroad, and what Portugal offers in terms of benefits.
So if you're an American can you get any advantages when you move abroad? Well, you can get foreign earned income exclusion- which is about 110 000 USD per year tax free. This is only applicable to earned income, not the investment income.
Secondly, you can benefit more from your foreign offshore company. You can get a lower GILTI tax rate.
However, the overlap between Portugal and the US in this regard will not work, so if you move to Portugal you will not get any tax benefits. You can still get a Golden visa and a residency permit. This will lead to EU citizenship after 5 years, however unless you renounce your American citizenship you will not be getting any tax benefits if you move to Portugal.
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Usually, from my understanding, Portugal is a destination for safety, the easy going lifestyle, good healthcare, good weather, easy residency / citizenship, and not so much the tax situation.
Bruh I know you here a lot of things about American health yes it’s not free but it’s a lot better due to the private sector and you’ll always be seen the same day you show up unlike certain parts of Europe
I’ve been to Spain,Poland, Germany and the uk which the healthcare is not free they tax the citizens
Tax???? Try to live here and see how tax are eating all your salary
@@genevasky9610 I uh.. live I Portugal.
I dunno about the healthcare part
@@Gabriel-gu1qn in the US you pay taxes but also have to pay for healthcare if you are unemployed in addition to healthcare co-pays when visiting doctors. If you are employed, you can get healthcare through your employer but you still pay taxes and the employer will take several hundred dollars out of each paycheck to pay for the healthcare.
So for example if you or a spouse you are married to were to get cancer or very bad COVID, in the US, if you are unemployed you have to go to a homeless shelter for healthcare and hope for quality service or pay for private insurance out of pocket by yourself and that could be several thousand dollars per month for a couple in addition to other payments to doctors, for prescriptions, and treatments. Many Americans who got COVID went broke as a result of going to hospital, especially if they were unemployed at that time. Cancer treatment in the US if you are unemployed can be several hundred thousand dollars easily.
I have been living in Portugal for about a year. I pay 20 percent of everything from income (NHR) and this is one of the best conditions that I have seen in Europe.
I know you from a video I watched. one famous streamer donated a huge amount of money to you
Hi: I am from Canada and retired teacher. Thinking of moving to PORTUGAL. I live on my pension now. I like warmer weather and beaches. Can you suggest a town with reasonable rent but good medical facilities since it's important for me. Thanks 👍 😊
@@softprincess1 any city near the ocean you gonna be fine. We have many public hospitals (almost free) and we have many others private that are payed by the government to be cheaper to everyone, and healthy insurance are very cheap too.
If you decide to live here... Welcome to Portugal
Yeah, 20% before socials and when the country is run by the socialist party… the socials are insanely high surprise surprise
Tough choice, live in a country that has no health, poor education and is inward looking. Or, move to Portugal and live a wonderful lifestyle.
Well it's not like those are the only two choices, there are many other options
Sometimes I read these comments and think we must be living in another country. Healthcare is good where I live in the US and so is the education… so I guess it just depends on your neighborhood. No place is perfect after all.
👍🏻
That, my dear, fundamentally is the problem - You talk about your US living condition that is only relative to your own reality, however there are literally millions of other Americans who will never see such liberties in their lifetime, all whilst living in the same country.
Whereas with Portugal (and many other countries), there is healthcare, education, TAX, and many other dynamics that are uniform for every citizen and/or foreign resident that essentially guarantees a fairly decent (if not high) standard of living compared to what the variable American will experience.
That is why you have many Americans flocking to other countries, it is not inherently that the US you experience is wrong, it is simply that other Americans do not have such easy access to what seems like is a very favorable US living condition for you.
So to reiterate your aforementioned statement, absolutely: "It depends on your neighborhood. No place is perfect after all."
@@George-mz8ct exactly and well put...I have therefore.... not taking into consideration much else
We've been exploring Portugal for about a year and love what we are discovering so far. Being here is the best teacher and we're learning new things every day. Thank you for your contribution!
Several American folks I've seen on UA-cam that have moved to Portugal have done so in order to double their living standard by halving the living costs. The great, pensioner-friendly weather seems to be an added bonus.
exactly. Everyone wants to improve their life and stretch their dollar. People who get mad at this are salty losers. I'm looking at SE Asia myself
@@FSVR54 Or people who are from the said country and can't afford an house 🙃🙃
@@EldenFiendthese people? Empathy? Don’t even bother
The Main advantage with Portugal is the low income requirement that Andrew Henderson points out with 600 Euro a month income in order to get into Schengen, or 7200 a year. The other is the foreign exclution of 110.000 USD, so no taxes to the US if your earning is below that. So Portugal is a great move when you have low income and want to live in Schengen and work toward a citizenship 🙂
So the 20% tax on income is for those that make $120,000 or more? Living with Social Security is less than $50,000 a year
Wha if you already have EU citizenship from another country as well as USA? Does that raise your taxes in Portugal?
The monthly income requirement is now closer to 880Euros p/mnth and subject to change as its tied to the minimum wage. As a result, the minimum deposit requirement is approx. 880 Euro x 12 (mnths).
@@charliemontholon
I think some business savviness can achieve the appearance of 3k income on paper with the real piggy bank being hit with lower taxes. Think smarter not harder. My 2 hamsters working overtime upstairs in the old noodle can see the games being played.
Hi: I am from Canada and retired teacher. Thinking of moving to PORTUGAL. I live on my pension now. I like warmer weather and beaches. Can you suggest a town with reasonable rent but good medical facilities since it's important for me. Thanks 👍 😊
I lived in Portugal since 2014 after I retired from working for 10 yrs in USA.
I rent out my house in America and live in Portugal and love it!
My rent is only 410 euros, healthcare free, and plus I was able to go back to school again for FREE!.
Side note, I broke my arm 3 years ago and paid $0 on healthcare, WHAT THE HELL IS HE TALKING ABOUT?!
Most importantly the people here are friendly and non-judgemental at all. I couldn't make a single friend in America at all. Go to any Portugal nightclub or social event and you'll make friends easily!
This guy wants Americans to stay in USA to feed the corporate machine. Good luck with quiet quitting!
This seems to be a very interesting place, I hope I can visit sometime in the future. Seeing and sharing places like this is why I love traveling and make videos so much! And please keep up the great job! Subscribed!!
And you will be welcome by us.
Just don't think Lisbon is the only thing in Portugal we have many many more to offer... Don't forget the islands like Ilha da Madeira and Açores ilhas. Search and see by your self.
I moved to Cuenca Ecuador 2 yrs ago and it was the best decision of my life..I live here comfortably on 1200 a month SS
I learned Spanish and live outside the city .The locals are so nice ! We have a huge helpful Expat community here..great medical care and life is TRANKILO..
Tranquila
Manizales, Colombia is another option quite favored.
Yes..locals are so nice.Unlike Americans.Last f'n thing I'd want is to live in "expat" circles.
Thank you. Always informative and I really love that you avoid click bait and hyperbole.
Always our pleasure!
What do you think about Portugal?
Great content! I subscribed and look forward to your other videos.
Thanks for the video! Something to think about for sure.
Our pleasure!
Were you considering Portugal?
@@OffshoreCitizen I definitely am. Hopefully within the next year or so! Very attracted to the weather and the slower pace of life.
Life is more than taxes, but I understand your point: your job is talking about taxes and making comparisons. By the way, do you live in the USA, or pay taxes somewhere else?
Portugal is Very beautiful with great people & one the Safest Countries in the World.
Great content.
So where is good for an American cousins?
Do they all have to give the passports back?
If I have Social Security retirement do I have to pay taxes on it if I moved to Portugal and have the money moved over to a bank in Portugal ?
Just to clarify, how would it work if it’s only in town and you’re making over $100,000 a year for example? Do you get double taxed, what are the tax breaks for ex-pats
I don't get it, so what people NHR targets? I've actually heard that FEIE is one of the best things you can get, because that means (at least someone described it to me like this) that you can invoice someone and not pay taxes (since you're no longer in the US), but also not pay taxes in Portugal (because it's foreign income, which is 0% in Portugal when NHR applied). I might got this all wrong.
Seems to be quite different situation for Canadians! Would like to hear someone on the NHR regime as a Canadian. 🇨🇦
It's different for everyone outside of the Americans.
I’m interested in obtaining an EU passport to travel freely within the EU and the Schengen zone. I love to travel to Europe but the Swiss will check out my passport with a microscope to try and discover that I exceeded my time somehow. The D7 from Portugal seems attractive since it’s relatively easy to get but I receive a pension that doesn’t need to pay 10% above and beyond its current taxation in the US. Now, I have means to support myself with savings for several years, but the question is whether the Portuguese government will accept it as proof of income to fulfill the self- support requirement to get an D7. I’m retired.
Hi Michael, I believe pension income is exempt from Portuguese tax to US citizens. The tax is controlled by the Tax treaty. Thus I believe the US citizen who is resident of Portugal has no tax on Pension income from US sources because it is taxed at the source. There is no tax benefit or burden to the US person because the tax treaty makes the burden neutral. A US person needs to be very aware of the specifics of the tax treaty when considering residency in another country. Since a US person is also taxed at the State and sometimes local level, being a resident of Portugal may significantly reduce the overall tax burden. There is also the benefit of cost of living and quality of life.
Hello
It is until the end of 2021. Beginning in 2022 it’ll be 10% on pensions as explained by the UA-camr
@@Mr.S65 public pensions are still exempt, or at least that is what I heard recently.
@@Lat41 I had a Portuguese account tell us that GOVERNMENT pensions are exempt from PT taxes, so when you say "public" pensions, you mean government. Like if you worked for the State or the Federal Government, etc.
Public pensions are not exempt from the mighty federal taxes .It is exempt from state taxes only.
Assuming no change of citizenship, why wouldn’t a US retiree be able to credit any PT taxes via US FTC ?
Do you have a video related to those who have Canadian citizenship? (I also have one from Russia) How would it work in terms of taxes if say as a freelancer (self-employed I decide to relocate for 6+ months to Portugal? As a test ride so to speak. My income is modest at this point.
Hi: I am from Canada and retired teacher. Thinking of moving to PORTUGAL. I live on my pension now. I like warmer weather and beaches. Can you suggest a town with reasonable rent but good medical facilities since it's important for me. Thanks 👍 😊
Hi Michael- Question regarding D7 and Tax scenarios. Under a D7 you automatically become a Tax paying resident of Portugal and the country, i understand taxes you on all income earned world wide. Lets say there is a US citizen who is retired drawing SS and retirement pension from the place of work. in addition may have income from cap gain, Dividends on investments and may be perhaps withdrawals from a 401K (could be a RMD withdrawal). All these amounts are considered as Unearned income and taxed by Portugal at their standard slabs (14.5-48%). Even though there is a Dual taxation treaty between the 2 countries (PT & US), you only pay in one country and US will be financially a better tax paying option. Is there some thing called a "TIE BREAKER" rule that Portugal can apply and exercise the right to collect PT tax if their calculated tax is advantageous to them. Apparently a rule as this exists between Portugal and UK not sure if applies to USA. In this scenario a reasonably well to do and earning retiree will be shafted with a higher tax and be a loser tax wise. Can you please elaborate the Tax implication under a D7. I do understand that a D7 can be converted to a NHR and even there, though a flat rate, you are still taxed on all income at Gross income levels. This tax rule is not favorable it seems to me for some one who has above average unearned income from US. Do you agree this is an unfavorable option for a US person under those above average unearned income levels. thanks.
Double tax treaties don't necessarily mean you're only taxable in one country. The problem in this case is you'll get taxed in the higher of the two across the board at best.
Note D7 doesn't convert to NHR. NHR is a, tax status, D7 is an immig status.
And yes the point of the video is that Portugal is sub optimal for Americans from a tax standpoint.
Is there a video about Canadian citizens and Russian? :) where is best in terms taxes if your company is registered in Canada (my income is tiny and I have a sole proprietorship however just to know for the future as I hear quite many people in Canada not happy with amount of taxes they have to pay.
What are the Tax implications for a US citizen in Portugal coming in on a D7 visa.
Also if I am in a D7 visa, will i be able to buy a condo in Lisbon / Porto or cities where the Golden Visa plan has buy restrictions. Thank you sir
You can get the NHR on a D7 visa
I've wondered about this for Australian's because Portugal isn't on our tax treaty list. The global income tax rule aside, is Portugal also not great for Aussie's?
Portugal can be fine for Australians so long as you've very careful to severe your ties with Aus
But, Australia has a Social Security agreement with Portugal , for years served or lived,unlike France
I plan to retire in Portugal. Not gonna make any money in Portugal or anywhere else, just use my social security and IRA. Am I correct that on the top of paying taxes in the US, I will pay 10% in Portugal? Please comment if you know.
I understand NHR is useless for US citizen it only waive or lower tax if US charge tax for certain items according to the tax treaty. However, I have questions on how tax treaty between two countries work. For example the dividends, does the treaty specify which country get to charge tax or only specify which country get to charge first and the second country get charge more if the tax rate is higher in the second country and this cause the tax payer to pay the higher the tax rate between the two countries?
If its the first case, the total taxable for US tax might be lower because some income will not be taxable in the US, or is it a credit system where you apply the credit in US for the tax you paid in Portugal?
What about dividends from Roth and other retirement portfolios?
Can a UK citizen benefit from moving to Portugal, if they are primarily "earning" money from trading stocks/shares/options/futures etc....and say they trade in the US markets? And I understand you'd pay 20% on earned income rather than what I described above which could be deemed investment income perhaps?
Does anyone know if VA disability is taxable in Portugal? I can't seem to find the answer. Thanks
What frigid place is that behind you? Canada?
How are the retirement residences and old folks homes like?
4:15
What taxes would one have to pay on the US side in that situation.
A little confused now. If you have an American company, but live in Portugal, I was under the impression income earned outside of Portugal isn’t taxed. Is that incorrect?
Did you find the answer to this?
@@AIASHS No
It's a similar situation for Australians Michael as no DTT exists between Oz and Portugal.
OMG I had the biggest crush on this Portuguese girl once - things could have turned out different.....
From a number friends who've emigrated from Portugal to Oz (most say they regret the move..,) I've heard too many sad examples of both the ATO and the Portuguese tax authorities hitting heavily earnings, investments and inheritance.
That's really sad cause Portugal is such a wonderful place, the people are warm, the food is great, it's comparatively affordable and although the sailing can be tough if you're a board rider you'll find the biggest waves in the world there. So for Aussies it's one of those places that you'll only go to for family or lifestyle...
Thank you Michael for a sobering but wisely put video pointing out the challenges with Portugal.
You're welcome! Thank you for sharing your story 😄
You might find this one interesting ua-cam.com/video/Xdas1b-8loI/v-deo.html
Let us know how you liked it
Seems the Portuguese are non too happy you Americans are flocking there.
Very lucid and informative. That matches up with the conclusion I came to on Portugal. Essentially, that it has many nice aspects, but I won't save on taxes. Still a lot better to deal with than Spain though. It would be very interesting to hear you do a similar video on how Switzerland and the USA match up. Switzerland has no CGT, and a roughly 21% personal dividend tax, but they also have a "friendly" tax treaty with the USA.
Thanks! That is a great suggestion!
Are you considering Switzerland?
@@OffshoreCitizen
Yes, I was medically discharge from the military and consider disabled, will this affect me if I decide to move to Portugal?
Yes, I was medically discharged from the military and consider disabled, will I have to pay taxes, if I decide to move to Portugal ?
you want to live for free from my taxes. You deserve you disability. If you get portuguese nationalitybyou will pay taxes. You need 5 yeas to get nationality and you will eventualy pay them.
solid info as always! Apart from Puerto Rico what other place is good for American who live out of dividends or crypto investment sales. Thanks for the content
You don't gain advantages anywhere else you might just have it be even worse in some cases.
Monaco
If I retire from USA to Portugal and not work there what is going to be my situation. Can you answering to me please. Thank you. You video was really helpful and amazing. ❤
Best is to send us a message through www.offshorecitizen.net
Great channel. For retirees in USA, they still pay tax on their pensions to IRS. If they move to Portugal, does it mean they will 10% tax and tax to the US IRS? If it is true then they will be have a double tax, then that’s not good.
You should be able to get a tax credit towards your US taxes.
Panama relocation tours!!
@@joelmadrid2193 Panama is to expensive but nice to visit for vacation it's like a baby Miami
As usual very informative vídeo. No one ever answers the question of what happens to all the folks taking advantage of the golden visa after 10 years. I’m assuming they are taxed at the Portuguese rates?
Exactly. After 10 years you get taxed at the normal rate.
@@OffshoreCitizen does that mean you are double taxed in the US and Portugal? If yes, is there a way to avoid this double tax such a become a citizen of Portugal? Does that mess up your pension/SS/ and IRA from the US? Thanks
@@sharilove6222 US Foreign Earned Income Credit is ~$108,000 so you won't be taxed on the first $108,000 you make if you spend less than 35 days in US.
I understand what you're saying and it's important information to have . Do you think the low cost of health care helps financially?
This is very useful info. Otoh, moving someplace to benefit from the society there should include a willingness to contribute to the tax base there, surely.
Sounds like Puerto Rico is the one of the best option for the lowest tax rates.
0% cap gains & 2% business tax for the first 5 years, then 4%. includes staking crypto via dividends @ 2%
So which countries are good for americans with low or 0% income taxes? Malaysia, Panama, Paraguay?.... others? thanks.
Puerto Rico is the best for Americans who are willing to go live there, the question is are you willing to do so?
have you thought of violence, social inequality, political instability, terrorism, poverty (among others)?
@@OffshoreCitizen -Puerto Rico from what heard from a born Puerto Rican friend ( A professional Engineer ) of mine is unfit to live with the highest unemployment rate, high crime etc. He left PR about 13 years backward currently it is a move backward to relocate to PR. What you see in all the travel catalogs are not the real life scene in the citiies.
The problem for Americans is US citizenship.
@@cookmaster3626 Puerto Rico is nice to visit for a few days. However the locals can't stand Americans.
As an American, even if you renounce your citizenship, you will need to pay taxes for the next 10 years. No running away from it. In Portugal you will pay 10% for the first 10 years, and then 20%. Health insurance is USD 300 a month.
That's not true. Once you cease to be a US citizen so long as you're not a resident or don't have local source income you're free of the taxes
What is foreign earned income. If I do consulting for an American company, is that considered forign income.
Depends, foreign to who? It's local Portuguese income if the work is done in Portugal in most cases
Can you do a Canadian version of this please?
what about U.S. pensions for an American living in Portugal ???
Is there any tax difference/options for a U.S. citizen that acquires dual citizenship as a Portuguese that is living in Portugal while earning a U.S. based income?
No
@@OffshoreCitizen Thanks
Don't watch this....it's all negative. Portugal is a wonderful place to live or visit.
As i said many timesz we hate you, this is going to explode and we will get ride of parasites like you
Offshore Citizen, by the way why don't you use your own name?
All the numbers, comparisons, comments you make are superficial and misleading. You cannot judge a country without visiting it and study the way it works finantially or in other any aspect. I've been to the States as a tourist only and do'nt want to return. Poor housing, poverty, healthcare system and education system are deplorable, loads of low quality clothes, if you want good quality hygene products you do pay for them and the list could go on. I'm not surprised by the quantity of Americans from the USA who want to live in other countries especially in Europe.
I live in Portugal with my USA Disability pension. I applied with the Portuguese IRS office for the " Non Habitual Resident" scheme, as my pension is received directly into my Portuguese bank account. The Portuguese IRS office approved my petition, and as such, I now pay NO Portuguese IRS taxes for 10 years. In the meantime, as a dual citizen, I have applied for Portuguese disability as well, and got approved. As such, once my 10 years are up, I get a number of tax breaks,and other benefits as well, such as free meds, no car yearly tax, no VAT on a car purchase and or adaptations, 50% discount on transportation monthly passes, queue priority, no health visit co-pays, free ambulance transportation for medical follow ups, or treatments, and other benefits; just because the Portuguese government granted me disability as well. Overall, not bad at all.
If you looking to retire on a budget of 1200 euros Portugal is by far the best country to do so, if you are from the E.U
Is there a big difference in cost of living in continental Portugal vs. Azores or Madeira?
Very small. In Lisbon u might get broke really fast. Don't move to Lisbon unless u got the $$$
Madeira and Azores are cheaper than Lisbon.
But Portugal is WAY cooler than US
It's amazing 🌹 video ❤️ keep
Thank you, Ihsan!
Anything you'd like to see next? :)
I am Brazilian-American retiree citizen leaving in USA. I am planning to move back to Brazil. Is there the same tax problem like Portugal? Should I renounce my citizenship? In this case, I think I would loose also my SS retirement. Is that correct? Thank you.
Social Security has nothing to do with citizenship.
Why would you go back to Brazil? É uma merda
Looking forward to the day you make a video about Bitcoin City in El Salvador, maybe even recorded from there? :D Only a matter of time I guess?
Stay tuned ☺
How did you like this video?
Although what you say is true in a sense, it is far too oversimplified. First it doesn’t really address retirees and is geared to people with earned income. For retirees Portugal is better than any EU country. Of course you won’t save compared to staying in the US because the US taxes worldwide income, but for many staying in the US is not attractive for various reasons, including horrible health care system, too many guns and violence, politics and division, etc. if for example you would otherwise be living in the U.K., Portugal is much better: income tax less than half, no inheritance tax, free travel to Schengen area, etc.
Have you recently tried to purchase a U.K. item while living in Portugal? Or, buy an apple computer. Not so easy and def price difference, but these issues only apply to addicted American consumers like me. I do agree that it’s a much better quality of life.
@@scrillathekid5562 In Portugal, large imported items are usually a bit more expensive but the day to day living expenses are very inexpensive compared to the U.S. I like the idea of taxes actually having a benefit, like healthcare - especially when the cost of healthcare premiums in the U.S. are practically another 10% or more of your income anyway (not including co-pays or deductibles). Fortunately, I don't buy a new computer very often.
Have you seen the gun ownership rates in Portugal? Sky high.
@@kenlewis2253 if you like your guns, Portugal is probably not the place for you. Gun laws are very strict and obtaining a license to own a gun can become a challenging process even for hunting purposes (you also would need a license for that), but also for sport. Self-defense licenses are very dificult to obtain from the Public Security Police and never for war calibers.
Note: I don't really have an opinion on more liberal gun laws in certain countries, but that is not the reality over here.
@Ken Wilson 👍🏻👍🏻👍🏻
Great information as Always! I do have a question though that isn't fully explained. In this scenario it is assumed that someone is moving to Portugal to avoid higher taxes on earned income then un the U.S. and what you have described on the outcomes makes sense. However, it doesn't describe or layout a scenario where no additional earned income is being received. For example: My wife and I are US citizens getting close to retirement and are looking at possibilities for living abroad. We both have 401K/IRA's, I have a Military retirement pension, and we have our savings. We will both be eligible for social security at the maximum rate when we reach the age required to draw. We intend to pay cash for our home abroad wherever that may be, so our only bills will be property taxes, insurance, utilities etc. Which will allow us to live comfortably off of our 401k/pension/ social security when able and not work anymore. What are the benefits/downsides to this scenario?
Hi Charles, I am in the exact same situation as you are word for word financially, and don't plan to work and considering a D7 visa which is the fastest, lowest cost, and guaranteed (based on D7 requirements). entry into Portugal for a year with a possibility to renew. My goal though is to visit much of Europe staying in some neighboring country (as Portugal / Spain) rather than fly from US each time. Besides the D7 as I understand allows free movement in Schengen zone (waiving the 90/180 day rule). I dont mind paying or committing to a 2 BR apartment for a year in Portugal ( i hear you can get in the 700- 800 USD furnished) even though with my travel plans i may be out of Portugal for about 5-6 months. I think of the unlived rent as a home away from US, and offsets the multiple travel between US and Europe. My question though is the Tax implications. The way i see is if US has a Dual taxation with Porugal you should be still able to claim that back. So why so much being talked about the taxes i must be missing something.
I have the same question with almost the same situation but a private pension....I have heard there is a 10 year NHR exemption for Portugal taxes....I am curious what happens after 10 years? Are we then double taxed both in the US and Portugal? I cannot find much info about the tax scenarios.
Americans will have a hard time assimilating here, Portugal is so slow.
Thank you for the info my friend, but the mumbling is real.
20% tax on earned income? That's not very realistic. Are you talking about a medium %? Cause it goes from 0 to 40% depending on your year income.
Most Americans are materialistic. And living in POrtugal is just about enjoying life. I only say this because I’ve been here 10 years. The only thing that sucks is the bureaucracy
Can someone explain to me the penalties of cost if getting employment pay from a company in U.S while living in Portugal? I’m entertaining this for a couple of years
You will need pay your income taxes in Portugal
If I understand this correctly, even if you break even on the tax bill, aren't you likely to benefit from the "lower" cost of living?
Great work Michael.
Lower Cost of living ? Don’t get your hopes up !
Portugal has the worlds highest VAT. Also the worlds most expensive water and electricity!
It’s pretty unsophisticated with poor infrastructure.
A great place to retire to, but I would t come here unless you are over 50
@@maxflight777 no place is perfect! Infrastructure in USA sucks and electric and water is expensive. Mass shootings every day and unaffordable healthcare is not all that great either.
@@maxflight777 what are you smoking
@@maxflight777 Perhaps you're one of those blokes who live in the South of Spain, getting drunk all night and making a spectacle out of himself on the street. Disgusting!
@@maxflight777 with much cheaper healthcare.....we in the US are paying 15-20% federal tax, plus then state income taxes (0%-13% depending on income and state with the average being 5%), real estate taxes, tax on purchases, and then the big big big expense of $10,000 to $20,000 a year in health insurance with still a risk at going bankrupt if you get seriously ill.
In the US, under certain amount, Social security is NOT taxed, if PT tax "pension" from retiree of other Countries origin then it is NOT a good idea to Retire in PT if one is NOT a high earner and would like to take Tax "benefit". In the US, there are many places one can live very "cheaply" even with high Taxes on Properties, Cars etc.... The ONLY major issue is the Health Insurance which is Barbaric in Nature from my personal experiences whether one can AFFORD it or NOT.
Barbaric, really? It' s expensive but works well.
Expat, was possibly looking to move back, but waiting for the country to sort itself out.
Instead of that, the situation there has been bad and getting worse. I remain a 'refugee'.
There is more peace and safety here, nice beaches and weather, it's great for retirees.
Smart choice brother,
We just had another mass shooting this weekend somewhere in the north of the country. Racially motivated. And the supreme Court is about to over turn roe v Wade. My heart is broken for America 💔.
I don't see it getting better
You're going to be waiting until hell freezes over.
I’m thinking Braga, I just started looking for places overseas. I’m a bit over what’s going on here in the states. It’s a mess with no forward thinking.
Watching lots of UA-cam videos to learn about this. Hopefully I can will this into existence in two years .
Portugal has a 10 years tax breaks. You should look into that. Let’s say you are retiring in 10 years time. Perfect. You can receive your salary in portugal 100%. Make sure your country doesn’t have worldwide tax.
From what you sat it seems the problem is on the US side rather than Portugal. Then, the US is one of only two countries in the world (the other being Eritrea) that taxes ppl on the basis of their citizenship rather than their residence. Maybe you work to change that awkward system and align the US with the rest of the world, it would make life easier for Americans.
I would have to disagree with the NHR program comment. You can definitely pay almost nothing in taxes in crypto capital gains and earned foreign income. Now yes the requirements are in the detail! I believe over 120k in salary you have start paying taxes. You just have to make sure you do not have a resident address in the USA and tell the IRS that you do not live in states anymore. Also try no to travel to the states whatsoever once in Portugal doing the NHR program. If you must, just go once a year and you shouldn’t stay longer then 1-3 months. Make sure you do not trade your crypto (look up trading definition).
At same time and situation,, we’re equal ! I am residing in Kuwait no taxes at all but they don’t give citizenship,so we remain expatriates for them and employee .! Gas,house rent and food , I can say it ..it’s cheap because of value currency but logically we are same situation,,personal business here they don’t allow unless under control their citizens all the permit and even name business,,so balance situation! And when we get old enough and retire then no saving and small investment ,,useless to live here ! Sometimes not the country is the problem but ourselves
Live in contentment and spent money wisely ..
💖💖💖💖 better u stay in ur country..
Thanks for sharing your story and insights, Janice!
How do you like Kuwait as a place? How about the weather?
I am still researching the tax situation, but where can an American go and not pay taxes to the US on dividends? It would seem that at least you would not pay double taxes on the dividends in Portugal.
Puerto Rico is generally the best place.... from a tax perspective.... for US citizens (those who aren't willing to renounce their citizenship).
@dlukton you can have both nationalities in PT
@@dlukton pr is a territory why would anyone renounce their citizenship for that makes no sense
What would be the better alternative to Portugal in terms of safety, language, lack of politics, etc?
Good question. Language (assuming you mean English) is going to be better in Malta, Cyprus, Malaysia, UAE.
Safety better in UAE.
Politics depends what you mean by that.
Learn the language and you'll go farther.
@@OffshoreCitizen Wait... safety is better where?! .... Did u ever been in Portugal!? Do u search by numbers etc etc?!
I have an Irish passport. Can't I just go to Portugal as an Irish citizen?
Yea, cause of EU law
Why is the assumption that People want to move for tax reasons? At this point, freedom is what I’m looking for.
Yes lots of hype because of the NHR. I see many Americans being excited d by the non taxation of some type of income. And they all get hyped up by the FEIE etc.. It's laughable because no-one pushes back against the US taxation to begin with.
We are going to Portugal because we can't get Healthcare in America. My husband is an EU citizen and not an American. I won't be working. I think I won't be payi ng much in taxes either way. The lifestyle in Portugal is much better or we would go to UK or Germany ect..but we like the inexpensive, slow and happy life they have. We have visited several times. Its a great place.
Nice, sow you can be a parasite and live from me and many others portuguese money.🤚🏻☝🏻💥🐒
great video Michael! Would you think its a good idea for people from other EU countries to move to Portugal (especially since places like the Sweden, Denmark, Germany, etc. are increasingly becoming bad places to be)?
What's your reasoning behind that statement? Depends on your situation. Salaries in Denmark and most likely in Germany will be wayyy higher if you are a skilled employee. As in possibly 4 times higher or more. If you are a "free" location-independent business owner, who knows.
It all depends on location of portugal you want to go to, some areas are very cheap to live and others are a premium but declining in value due to non tourism. Your living standard will increase 2 fold if your making a higher wage elsewhere and you will have peace and amazing weather also food.
@@snterp Not everything is around money, some people have diferent reasons to live aboard...
Portugal is more a country to visit once or twice if want to live here its better when you are reformed because its cheaper to live here.
You also earn less in here than the countries you listed.
@@archive4059 Portuguese passport is a good travel document. I would not spend too much time in Europe tho.
I am glad i lived in Lisboa in 2015. It was amazing but I am afraid to go back to see what people have done to it. I have seen the photos of all the cranes. Sad.
Lmfaoooo cranes to build a better city??? I’m confused.
The Portuguese are fleeing Lisbon…it’s impossible to pay rent in the city…gentrification is massive…The cost of living is too high for the Portuguese.
Personaly I thank to those who are moving back home cause nowadays we portuguese can't afford buying a house or even renting one as their prizes have incredibly increased because foreigners has higher incomes só tthey easily buy or rent it on Portugal and off curse because of the demand.
However we love foreigners but ...
Someone wrote here that the country has no good Heath...really? Everyone being or not Portuguese may go to a public hospital or to a health center if they need and they don't pay...on other counties if you don't have a medical aid insurance you won't be assisted, isn't that true? You don't need to answer me because it's a retoric question.
The thing is that if someone i s moving to another country that's because the own One doesn't provide him/her the what is looked for by its citizens, right?
If you want to come the biggest problem gonna be the USA nhr not the Portugal side 😉
To travel in Portugal the gas and highways are expensive
your opinion seems buyest!
Hi: I am from Canada and retired teacher. Thinking of moving to PORTUGAL. I live on my pension now. I like warmer weather and beaches. Can you suggest a town with reasonable rent but good medical facilities since it's important for me. Thanks 👍 😊
You should visit, tour around and find a place that you like
My wife is from the Quateria area. Simply put - America is beautiful but it is a slow grind here. Portugal is different.
How about capital gains on profits from selling stocks after holding them for a year or longer?
28%
I have savings in America, and I get Social Security, and I believe none of
that is taxable in Portugal.
I'm sure the view from your window explains it all... One thing remains unexplained. What were your motivations on doing this video. Is not as if people are in fatal danger... Anyway, the number of Americans in Portugal is growing exponentially. Maybe you are helping. Thanks.
Gosh I have lived in Barcelona for 20 yrs , get ready to pay taxes.
How about Pension and Social Security income dude? Have you addressed this yet ?🤔
Obviously, I believe there are quite a lot of people who would give up the US Citizenship for Portugal. That will change everything, mostly for Crypto. Otherwise you are right.
Would you do the same?
Me. I am one of them.
So basically you have to be an accountant to live well in Portugal.
That is your opinion.
I am agreed with you even Spain pays half the taxes than Portugal.
"From a tax standpoint..." How do you weigh the factors that determine where you want live? That determine the kind of society you want to be a part of? From a tax standpoint? To my way of thinking, "from a tax standpoint" is worse than meaningless - it evokes the vile maxim - and the father of capitalism didn't call it vile for nothing. My brother was a successful corporate tax lawyer who put a bullet in his head because he couldn't live with himself. Am I naive to have moved to Portugal in order to put some distance between myself and the ambitions and adulation of hoarders of wealth? Maybe so. As my other brother said, "There ain't no Shangri-La." In any event, Michael, thanks for the advice, which I'm sure was well-intended. I, on the other hand, would advise people to remember the camel and the eye of the needle, and the exhortations of Marley's ghost. I'd say go ahead and make tax considerations a factor in your decision, but don't give them too much weight. Especially when you're on the verge of retirement. You're old. Get your priorities in order. It's not about the money. Its about the society you choose to be a part of for what little time you have left.
Portuguese citizen can move to USA 🇺🇸 as worker sir