# Portuguese Taxes



## 33Flights (Jun 10, 2020)

Helllo all! I’m planning for a move from the US to Portugal late this year, but still trying to nail down some budget items, especially taxes. I’ve seen a few figures such as no taxes on retirement income, 20% on any income if you have non-habitual resident status. I also see that there is a tax agreement with the US, some is that 20% net of US taxes? And are there any deductible expenses? Thanks for any help you might be able to give!


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## dancebert (Jun 4, 2015)

Portugal modified the NHR laws last year. Unless you'd requested NHR status before 31 March this year, the new laws apply. Pensions are now taxed at 10%. 

Best source I've found for all things Portugal tax and NHR are the free publications at https://www.eurofinesco.com/en/our-publications If you download enough they'll require you to register, which is also free.

There are deductible expenses. Their IRS figures them, and the rest of your taxes, for you. That's why using your NIF # when spending on anything is important. Their computers will associate you with purchases and Portugal-sourced incomes, then tell you what you deductions are, and how much, if any, you owe.

I've found the facebook group 'US Expat Tax Questions' to be useful. Although, like the rest of FB, there are some who post answers because they read it on another post and have never verified if it's true.


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## 33Flights (Jun 10, 2020)

Thanks, dancebert, that's very helpful. 10% still comes out to zero if you get tax credits for US taxes paid, right?


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## dancebert (Jun 4, 2015)

Because Portugal (PT) doesn't tax my SS, I haven't paid close attention. However, i _think_ that you file and pay PT taxes first. Then calculate the US taxes on the same income. If the US tax is less than the PT tax, you owe nothing to the US IRS*. If the US Tax is greater, subtract the PT tax from the US tax, then pay the difference to the US IRS. 

*Believe it or not, PT also has an IRS. And it's called the IRS:
https://www.portaldasfinancas.gov.pt/pt/menu.action?pai=19


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## TonyJ1 (May 20, 2014)

US social security pensions are not exempt under the double tax treaty. Under the 'new' nhr, the tax will be limited to 10%


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