# Live in Portugal but work for US company



## adamsmmj (Nov 12, 2010)

I am currently resident in the USA and extremely interested in relocating to Portugal permanently. I develop software for a living and work from home. My USA employer wants to keep me on no matter where I work in the world. So I would essentially be being paid in US Dollars into a US bank account. 

So I was wondering what are the tax implications and what I can do to minimize my tax burden both in the US and Portugal.

Additionally, would I be able to get a mortgage in Portugal based on such an arrangement.

Thanks.


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## Bevdeforges (Nov 16, 2007)

You normally pay your income taxes (and social charges) where you are resident. So for an arrangement such as you describe, you would probably have to create some sort of business entity for yourself in Portugal in order to report and pay taxes and social charges.

At the same time, as a US citizen you must file taxes no matter where you live in the world. Once you have met the requirements (length of residence abroad), you can take the overseas earned income exclusion, which allows you to "exclude" (via form 2555) up to about $90K of earned income (i.e. salary) from US taxation.

Other forms of income (investments, etc.) are subject to provisions of any tax treaty between the US and Portugal as to where and how they are taxed. Basically, you're protected from double taxation.
Cheers,
Bev


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## mayotom (Nov 8, 2008)

but how are you going to qualify for Portugese residency, you say you are resident in the US, but are you a US or EU Citizen??


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