# Expat Taxes



## Moretothestory (Jul 25, 2019)

Slowly learning the tax laws of Portugal as applies to US citizens. I am appalled that apparently I must pay up to 48% of my investment income to Portugal and whatever amount in U.S. taxes to the U.S. on that same income. 

In other words, I must pay the usual U.S. tax on capital gains, dividends and SS, and 2 or 3 times that to Portugal. At that rate, I don't see how the average person can afford to retire in Portugal unless money is no object. Obviously, I need to consult with a tax professional. 

Thanks,
MTTS


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## travelling-man (Jun 17, 2011)

Once resident here you can register for NHR status which gives you a 10 year tax holiday on most but not all overseas income


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## Strontium (Sep 16, 2015)

The average person (I'm taking an average UK person) on state pension (about 170 gbp a week equates to 730 a month) compared to 

*The official minimum salary in Lisbon is of 600 euros per month as of 2019. That is the same minimum salary as in the rest of Portugal, *

People tend to want to live here because of it being Portugal, if you live in a local community you can live in a similar way to the locals and have a wonderful, relaxed and interesting life, the food, wine, coffee, plants, history, medical services,social life, music, arts, festivals, beaches, fish and fishing etc can be amazing and not really dependent on additional income.

Obviously if you want a golden visa and to live in a golden visa gated community that may be different.


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## Moretothestory (Jul 25, 2019)

NHR status, as I understand it, limits the number of days per year that someone can live in Portugal. If that is so, I would have to pack up and leave my apartment with my belongings and live somewhere else for the remainder of the year. And, from what I read, property rights are at the discretion of the locals. 
=MTTS


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## Bevdeforges (Nov 16, 2007)

Moretothestory said:


> Slowly learning the tax laws of Portugal as applies to US citizens. I am appalled that apparently I must pay up to 48% of my investment income to Portugal and whatever amount in U.S. taxes to the U.S. on that same income.
> 
> In other words, I must pay the usual U.S. tax on capital gains, dividends and SS, and 2 or 3 times that to Portugal. At that rate, I don't see how the average person can afford to retire in Portugal unless money is no object. Obviously, I need to consult with a tax professional.
> 
> ...


Before you go paying a (high priced) tax adviser, download IRS publication 54. If you are an overseas resident, there are some ways to avoid double taxation on things like investments. The key thing is the FTC (foreign tax credit) - where you can essentially deduct the income tax you pay to your country of residence (Portugal) from the tax incurred on that income in the US. 

You may also want to take a look at the Expat Tax section of our forums here. 
https://www.expatforum.com/expats/expat-tax/


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## travelling-man (Jun 17, 2011)

Moretothestory said:


> NHR status, as I understand it, limits the number of days per year that someone can live in Portugal. If that is so, I would have to pack up and leave my apartment with my belongings and live somewhere else for the remainder of the year. And, from what I read, property rights are at the discretion of the locals.
> =MTTS


Whoever told you that was wrong................ You have to stay in PT for a minimum number of days per year but you're not limited to a maximum number of days.


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## Moretothestory (Jul 25, 2019)

Thanks to everyone who left a comment. I plan to spend a few weeks in Portugal next March or April to get a better idea of what I want to do. Of course one thing of importance to most expats is health care. In my case I would be paying for private insurance, but I am not familiar with how that system works. Are there offices, hospitals and facilities that are totally private? Do I need to be in one of the larger cities for this type of health care? 

Thank you,
MTTS


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## JohnBoy (Oct 25, 2009)

Moretothestory said:


> Thanks to everyone who left a comment. I plan to spend a few weeks in Portugal next March or April to get a better idea of what I want to do. Of course one thing of importance to most expats is health care. In my case I would be paying for private insurance, but I am not familiar with how that system works. Are there offices, hospitals and facilities that are totally private? Do I need to be in one of the larger cities for this type of health care?
> 
> Thank you,
> MTTS


The private medical facilities here are extensive and excellent. We have three private hospitals in Coimbra and one of these has a 24 hour emergency room. Everything is readily available from simple consultations right up to the most modern diagnostics. Scattered throughout the city are numerous smaller clinics and laboratories for tests and consultations.

My one big bug bear is that the vast majority of the doctors have no reasonable attitude towards time keeping. They will usually turn up late for their first appointment of the day citing bad traffic or finishing late at the public hospital. Of course this means that they continue to run late throughout their shift. We usually try for the first appointment and have often sat there and seen others shown through before us that had been booked privately by the doctor without reference to the poor receptionist who is then left to take the flack. There are exceptions and my dermatologist at least is an excellent time keeper. Thanks Margarida!


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## Moretothestory (Jul 25, 2019)

I'm glad to hear that private medical services are readily available. What is the method that most people use to pay for the expenses? Is it best to just pay the full price out of pocket, or rather sign up for a private insurance plan?

Strontium, your post says that you are an expat in Spain. Do you also have experience living in Portugal?

Thank You!
MTTS


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## Strontium (Sep 16, 2015)

Yes, as you know (?) there are no borders nor different currency so working in one country and living in another and poping into a third one for a weekend to get some shopping (cheese) is normal....or have you not bothered to spent any time in Portugal/Spain/France/Gibraltar?


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## JohnBoy (Oct 25, 2009)

Moretothestory said:


> I'm glad to hear that private medical services are readily available. What is the method that most people use to pay for the expenses? Is it best to just pay the full price out of pocket, or rather sign up for a private insurance plan?
> 
> Strontium, your post says that you are an expat in Spain. Do you also have experience living in Portugal?
> 
> ...


Personally, I am very fortunate in that I am covered by a private scheme that is provided by my partner's previous employer. Even with that I do sometimes have to make a small contribution towards some examinations and dental treatment. Consequently I have no idea what the various medical insurance schemes charge. There are ,amy to choose from and all offering different levels of cover. 

You can get some idea of the range of costs of paying for treatments privately from this website for the Hospital da Luz:

http://bit.ly/2KkAV03


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## Zola (Sep 30, 2019)

INSURANCE
I pay US$672 for medical insurance that includes accidents, via Millenium Bank. It's for people over 65. Finding insurance for us oldies is not easy. I use my insurance at a CUF hospital/clinic. Rather than pay full price for a visit (34 euros) I only pay 17 euros.
No, you don't need an account with Millenium Bank. One clerk there said I did; but the one in Cascais didn't say that to my friend. So when I learned that, I complained to the bank. They refunded the full 100 euros the other clerk said was required.


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