A FRESH Look At Portugal Taxes For Expats | Paying Taxes In Portugal

[@LoisLambert]

Hey Doug and Monique! Thanks so much for all your inspiring videos. Happy to report my husband and I are watching this video while we are here in Madeira on our scouting trip prior to moving!! thanks for blazing the trail and making the journey a lot easier for the rest of us. Obrigada! Lois

[@Track_Us_Down]

Hello Lois! Welcome to Madeira! It’s wonderful isn’t it? ☀️🌺 We hope you are enjoying exploring the island and scouting as you prepare for your move! Very exciting!! Thank you so very much for watching and for your kind message. We appreciate it. Cheers! M&D

[@luisrivas3509]

Thank you both so much for sharing this information. We will start looking into getting as much information as possible to get ready for tax time.

[@Track_Us_Down]

Hello Luis! Yes! All of us expats need to gather as much information as possible and be prepared! Best of luck to you friends! Thank you as always for watching and supporting the channel. Cheers! M&D

[@geekwif]

Great information, as always! Thanks!

[@Track_Us_Down]

Hello Carrie! Thank you for watching and for your kind message! Cheers! M&D

[@morgan97475]

Great information. Thanks!

[@Track_Us_Down]

Hello MS! Thanks as always for watching and for your positive feedback. Cheers! M&D

[@MW-ol1vl]

Thanks Doug and Monique, another great video. Will visit Madeira next week. Probably will schedule a consult with Fresh Portugal when we are in Lisbon.Many many thanks.

[@Track_Us_Down]

Hello M W! Thank you so much for watching and for the kind message. Zeev will provide you with valuable information about your personal situation. Its really an important part of the research for moving abroad. Good for you for doing your research! Best of luck to you and enjoy this beautiful island 🏝️! Cheers! M&D

[@WilliamIngram-gi6sm]

Another great video! Thank you so much

[@Track_Us_Down]

Hello Bill! Thank you for watching and for the encouragement! You’re welcome! Cheers! M&D

[@robinbailey55]

Very helpful as always. Happy new year to you both!

[@Track_Us_Down]

Hello Robin! Happy New Year 🥂 to you as well! Thank you for watching and for your longtime support of the channel! Cheers! M&D

[@Lusi-PT]

Hi Doug and Monique! I've been lurking on your channel since my own retirement and re-location to Portugal in October 2022. You guys are blazing the trail for me. Just wanted to say thanks for creating your great content and sharing your authentic perspective. I just received my temporary residence permit, starting to feel some roots to build on. Thank you again for your channel.

[@Track_Us_Down]

Hello Susan! It’s a pleasure to meet you! Thank you so much for watching our videos and for your kind support. We appreciate it. We hope you continue to find value in our content as you enjoy your Second Half of Life! Cheers! M&D

[@realtick]

Great content!

[@Track_Us_Down]

Hello realtick! Thanks for watching and commenting! Cheers! M&D

[@markandannette]

Great information as always! Something for my wife and I to plan for when we do make the move to Portugal

[@Track_Us_Down]

Hello Mark! Good for you for preparing before the move! Thanks for watching and commenting. Cheers! M&D

[@gillpurchase6512]

Fantastic advice and really helpful, we have organised a Zoom with a tax lawyer (Miguel) this week, strangely enough, so this is a great starting point xxxxx

[@Track_Us_Down]

Hello Gill! Absolutely a great starting point! As Zeev said - better prior to moving if possible. Thanks for watching and commenting. Cheers! M&D

[@lauran9001]

Hello there you two. Thanks for the great info on taxes and your contact as well. Just side note. Like your dimming & candle background. But if i can be honest you two look your best in a brighter background. Maybe a little more lighting like past videos?

[@Track_Us_Down]

Hello Laura! Thank you so much for watching and for your honest feedback! Yes - totally agree about the lighting- we tried something in a different space and definitely prefer the natural light! Cheers! M&D

[@twoamericansandadog7212]

Thank you guys! Have touched base with him and hope to meet with Ze’ev in the coming weeks. Just a note: The initial consultation is not free. But we are hoping that he might give us some targeted advice as we prepare to move to Madeira from the United States: Me being a newly approved Portuguese citizen under the Jewish law of return and my wife not being one. You keep feeding us good people and information as we prepare for our Feb. 3-March 17 trip to the island.

[@Track_Us_Down]

Hello Two Americans And a 🐶 Dog! It sounds like you have a very exciting adventure about to begin! Yes there is a cost to a consultation, but it’s well worth it for clear advice from a very knowledgeable lawyer. Your trip to the island is coming up! That’s great- Madeira will not disappoint! 🌺 Best of luck to you both and as always thank you for following along! Cheers! M&D

[@cbenson513]

Absolutely agree a professional consultation with an expat experienced attorney/accountant is a must do. I researched quite a bit and believe I know how my cash flow sources will be taxed both in the U.S. and in Portugal, but tax professionals are almost always a bargain when considering the mistakes they can prevent, money they can save, and peace of mind they can provide.

[@Track_Us_Down]

Hello Chris! 🌎 Thank you for watching and for the very true, insightful comment. We always appreciate hearing your thoughts. Cheers! M&D

[@mondarinvino107]

Taxes--messy subject but it absolutely has to be dealt with. D&M:. once the favorable tax rates of the NHR expire after 10yrs, do you think that event would influence your desire/ ability to continue to live in Portugal?

[@Track_Us_Down]

Hello Mondarin Vino! Great question! 😃We answered this on our Q&A video as we get asked this a lot. Yes once the NHR is over we will have to plan accordingly. 10 years is a long time and many things can change. We will have to reassess in terms of finances, family and lifestyle closer to that time. Thanks so much for watching and commenting. Cheers! M&D

[@marciomartins7928]

Thanks Doug and Monique, very informative, would love to see an update with Portugal canceling NHR for people who haven’t moved there yet.

[@Track_Us_Down]

Hello! Thanks for watching and commenting. We did do a recent video about the cancelling of the NHR. However, how we are reading that may not go through. It’s all very uncertain. Cheers! M&D

[@desertdweller8520]

I consulted with a Portuguese accountant and lost 100 euro because I never got the explanation about the tax treaty between the us and Portugal. I think I will reach out to Zev and see what he knows. I am in Madeira. Just arrived.

[@Track_Us_Down]

Hello DesertDweller! Thank you so much for watching our videos and for your longtime support of the channel. 🌺 If you are inclined while in Madeira, please reach out via our business email. Yes Zeev is a wealth of information and is able to answer questions clearly and accurately. Everyone’s situation from country of origin, to income, etc is so different that you really do need personal information, at least the first time! Good luck to you and enjoy the island!! Cheers! M&D

[@Track_Us_Down]

It’s tax time! Ever wondered what your taxes might look like as someone moving to Portugal? Check out Fresh Portugal for all the information you need! Click here for a 30 min consultation with Dirk, a tax expert at Fresh: calendly.com/dirk_fresh/30min?month=2023-02. You will be asked to provide an explanation of your circumstances and can expect to gain a good understanding of the tax system in Portugal, and how it applies to you. Click here for an actual tax planning session with Zeev: bit.ly/Fresh-Zeev-legal-trackusdown. This tax planning session includes a long consultation followed by a written, tailored recommendation on how to structure your income such that tax would be optimized. This tax planning is designed mainly for high earners (6 figure incomes) who have not yet obtained a tax residency in Portugal Cheers! 💙 D & M

[@danielsemyck7683]

Another great video! When you say, "ahead of time," how much ahead of time should we start talking to someone about taxes. We're planning on retiring to Portugal in 4-5 years. Thanks guys!

[@Track_Us_Down]

Hello Dan! Thank you for watching and for your positive feedback. It sounds like 4-5 years out, you still have lots of time. As the one year out mark approaches, we would say that’s probably the time to do a real deep dive. It’s a pretty dry subject and those of us who’ve tried to research online can tell you it’s pretty limited and with so many different situations it’s better to talk to someone with expertise in that area with regard to your exact situation. Good luck! Cheers! M&D

[@mascalzone2817]

Dan, I'm no expert and encourage that you seek specific professional advice. I can however share personal experience. We haven't yet relocated. We started to think about tax stuff 2-4 years from possible relocation date - to gain awareness of key topics and to identify issues. It’s frankly complicated and hardly riveting. Aargh ...... We have multiple efforts afoot to make our taxes easier. We are decluttering financial affairs - closing old bank/investment accounts so fewer inputs in tax returns. We are checking that our financial institutions permit non-resident customers. We are improving understanding of our assets & income/expenses (different tax treatment). We probably started earlier than necessary. Guess timing of tax planning may depend on degree of complexity of personal tax affairs; ballpark magnitude of taxes; relative importance of tax matters to immigration; and extent of interest in related matters. Good luck!

[@alanandsuegrimshaw4629]

Brilliant video thanks guys think we’ll be having a consultation with them 😊

[@Track_Us_Down]

Hello Alan and Sue! Thank you so much for watching and for your kind message. It’s so nice to consult with someone knowledgeable who is able to answer all questions. Cheers! M&D

[@tinglestingles]

Thanks! Can I ask, have you travelled on the 'carros de cesto'?

[@Track_Us_Down]

Hello Tinglestingles! Yes we have once when our sons were visiting! It’s part of the history of Madeira so it was fun in that way. It’s now quite a touristy thing, as well. Thanks for watching! Cheers! M&D

[@tinglestingles]

@@Track_Us_Down Great, we will be a tourist for the day - when we come next month!

[@Jerzy1954]

Guys, but NHR scheme is only good for ten years. After that you need to leave Portugal or pay the same taxes like everyone else.

[@Track_Us_Down]

Hello Jerzy! Yes we are well aware. 😀 We get asked this a lot and addressed it in a previous Q&A video. 10 years is a long time, after that we will have to decide based on finances, family and what lifestyle we want going forward. We could always leave for 5 years and then return on the NHR again or move elsewhere in Europe and take advantage of their tax incentives. All to be decided! It makes the adventure exciting! Thanks for watching and great question! Cheers! M&D

[@Jerzy1954]

@@Track_Us_Down Good morning, I love your videos and I love Portugal and Madeira. Ten years looks like a long time, but as we know it it will fly by very fast. I am not against of paying taxes if the country you are paying to is paying you back with great health care, social services and proper infrastructure like Portugal. I wish you both all the best in this beautiful part of the world.

[@mascalzone2817]

Thank you (again) for the informative videos. How come this is first Portugal personal income tax filing if you moved to Portugal in Q3 2021 (no 2021 tax filing?). From Western Canada.

[@Track_Us_Down]

Hello Mascalzone! Thank you for watching and commenting! We also appreciate you taking the time to help other subscribers with their questions. You have valuable input. We did move here in October 2021 on a D7. We paid full Canadian taxes for 2021. We were not tax residents here until 2022. We also got a signed document from the CRA stating we were Canadian tax residents for the whole of 2021. So 2022 will be our first tax year in Portugal. It’s tricky , especially if you’re dealing with half years in two countries. We are glad to have someone helping/ guiding us through the process. Cheers! M&D

[@mascalzone2817]

@@Track_Us_Down Huge thank you for this insight. Perhaps oddly it kept me scratching my head and learning today! It challenged my understanding of tax residency dates. As you rightly say, it's tricky. Your fabulous insight may accelerate our departure date. Impactful. Greatly appreciated.

[@dianapitt5665]

This information is Gold! Exactly what we need as part of our move to Madeira this year. Again, thanks so much for sharing valuable information. Blessings!

[@Track_Us_Down]

Hello Diana! We were so happy to consult with someone so knowledgeable and helpful. It has to be done… so we might as well ready ourselves! We are glad you found some value in the video! Best of luck as you explore and consult on your own taxation situation. Thanks for watching and for your kind message. Cheers! M&D

[@WhyYouTrippin]

Would income from KZbin AdSense not be taxed under the NHR regime as Google AdSense is technically considered royalties by the KZbin Partner Program?

[@Track_Us_Down]

Hello Why You Trippin! Yes our understanding is that Adsense is considered royalties. That’s a good thing! Zeev is very knowledgeable in this area and worth consulting about various income streams. Good luck with your channel and taxes!!! Cheers! M&D

[@WhyYouTrippin]

@@Track_Us_Down Awesome!! Thanks so much for sharing his info. It's really hard to find an accountant with knowledge about KZbin.

[@ssflh68ify]

Im confused! I am making the MOVE within a year. What is meant about setting up taxes Before my move.I will sell in the states and use funds to buy in Portugal. I will only buy after renting and choosing our next hm. Now I understand NHR will be discontinued in Dec 2024. Our income will be the same throughout, pensions(2) and Social Security(2). How can I set up this un forseen tax before my move? I have had my dream of Madeira since my first visit 50 plus years ago. Track Us Down has been my go-to! Thank You Both. Steve ps; I understand my need to find a Tax Rep, was hoping for just a tad of info.

[@Track_Us_Down]

Hello Steve! Thank you so much for watching and that’s a great question. Many people make the move, us included, without talking through the tax situation with someone to know what to expect, when things must be done, who must do them…. Also without the NHR , having some idea of what your tax situation in terms of cost and also how paying your USA taxes affects you here. Of course, you can, as we did , contact someone once you’re here and sort it. However we would recommend doing it before. Just for peace of mind and no surprises. There is so much to do to settle in a new country and to have one big aspect clear in your mind would feel really good. Best of luck to you! We are so glad you find value in our content. Happy Holidays! 🎄M&D

[@markandannette]

Excellent information and I really appreciate you sharing. I am wondering what happens after 10 years? We will be living off of social security and 401k withdrawals and a high tax rate would make it so we can not live once NHR is done

[@Track_Us_Down]

Hello Mark! We did a video answering that question . I think it’s the Madeira vs. Algarve one. Our “ working plan” is to stay the 10 years ( get EU citizenship ) then move to another EU county- Spain, Italy or France and take advantage of their tax incentives . Then after 5 years we can always return to Portugal and take advantage of the NHR again. That’s the “ plan” but of course…. We’ll see. Life! Thanks for watching and for your kind comment. Cheers! M&D

[@markandannette]

@@Track_Us_Down thank you so much for the reply, I will be watching that video, again I am sure. I love the plan and I can see my wife and I doing the same thing. We continue to work hard saving money and look forward to our scouting trip to Madeira

[@SisterSunnyFreeSpirit]

Do you have a vid on D7?

[@Track_Us_Down]

Hello Cyn! Please check out our friends at Honeymoon Always KZbin channel. They did a video on the D7. Thank you for watching and commenting on our videos. We hope you are finding value as you watch through them. Cheers! M&D

[@orangewetsuit]

Does this make sense? When a USA expat obtains an NHR, then during its 10 year period they should strategize to take their BIG long term capital gains so they only pay U. S. taxes since after NHR expires they will pay both U. S. taxes and Portugal Taxes on capital gains.

[@orangewetsuit]

Thank you Monique and Doug for shedding a bright light on this rabbit hole. The tax issue is a major hurdle to becoming an Expat. Thank you for all your work and making your channel superior.

[@Track_Us_Down]

Hello Orange wetsuit! To the best of our knowledge during the 10 year NHR period you would pay what you own in the US ( probably at least 10% or more) and then because you’ve paid 10% or more in the US , you would owe nothing to Portugal. After the NHR 10 year period , you would pay what you owe in the US and if that amount is less than what you would owe in Portugal, you will pay the difference on your Portuguese taxes. For example, if you pay capital gains tax of 10 % in the US , but in Portugal that would be taxed at 40%, then you would pay 30% to Portugal. As you wouldn’t pay the whole amount in both, due to the dual tax treaty but you would end up in total paying the highest amount. Ok- that’s our understanding! But please do consult with an expert as we are not experts!! Good luck! Cheers! M&D

[@Track_Us_Down]

Hello! It’s such a dry subject but it does warrant research and planning for sure! We are glad we consulted with Zeev to clarify information and plan for us going forward. Thank you for watching and for your kind message. Cheers! M&D

[@orangewetsuit]

Thank you very much for that helpful NHR vs. USA cap gains tax vs. PT cap. gains tax example. Soon, via your link, I will contact your tax expert “Seev”. Your sharing him is a HUGE help! Obrigado Canada for propelling M & D to Madeira!

[@chrismedeiros3201]

Ha! We don't care about taxes either! Nonetheless, your video contains terrific information. I especially appreciate the advice on Tax Point #2. That point alone can save us from potential headaches after moving to Madeira. Thank you!

[@Track_Us_Down]

Hello Chris! 🌎 Ha ha…. It’s such a dry subject but of course we do need to care and think about taxes!!! 😀 Yes being prepared with clear information on your personal tax situation is for sure advised, it also puts your mind at rest. There is so much chatter on various platforms, sometimes misinformation and such a variety of countries and situations that it can be difficult to know what applies in your own personal situation. That is why we sought out a professional. Cheers! M&D

[@yogisurfrunner1925]

New Sub here - I’ve been bingeing y’all’s vids all afternoon. Checking out Madeira in lieu of Kauai/Big Isle = )

[@Track_Us_Down]

Hello YogiSurfRunner! Welcome to Track Us Down! We are happy to have you here and hope our videos are helpful. We love Hawaii! Love ❤️!! You will find many similarities between Hawaii and Madeira and some wonderful differences; such as the lower cost of living and the easy access to world class destinations. Where as in Hawaii you’re isolated and travel is expensive, that’s not the case here and Hawaii’s cost of living is high. Enjoy your research! Cheers! M&D

[@CJ-Photo]

Isn't your pension public service? According to the dual tax treaty with Portugal, aren't public service pensions completely exempt from taxes in Portugal? Just wondering if that topic came up....

[@mascalzone2817]

I can't comment for channel hosts. But my understanding, perhaps inaccurate, is that Portugal NHR program currently includes 10% minimum income tax. This would be effectively nil for Canadian periodic pension payments (if already taxed 10% in Canada). No advice intended.

[@Track_Us_Down]

Hello CJThurman! Thank you for watching and great question. Mascalzone is correct about the NHR 10% minimum, as it used to be 0%. Every country’s dual tax treaty is a little different with Portugal from what we understand. I think there are some pensions in the UK ( public or government?) that are exempt. I’m not sure if that’s good or bad, as I think then you would always pay taxes on the pension in the UK and not benefit from the NHR. ??? Our pensions will benefit from the NHR. So we will pay taxes in Canada on our pensions ( ?) and if it’s equal to or more than 10% then we will not pay anything in Portugal. Going forward perhaps as non residents we won’t pay any taxes on our pension in Canada, we don’t know. That is our understanding. We had taxes coming off for 2022. Now that we are saying we are non residents of Canada, maybe they will take zero tax off our pension then when we file taxes in Portugal going forward , we will pay 10%. ?? It’s so hard to get clarity from reading articles or even Canadian revenue agency online. That is why we are working with professionals to get everything sorted and in place. Every country, and situation is different and especially the first time, we think it’s so important to consult with someone here in Portugal ( Zeev is amazing) as well as someone in your home country. Good luck! Cheers! M&D sorry for the long response 😂

[@CJ-Photo]

Thank you. My comment wasn't about NHR. It was about the pension type. According to the treaty, certain types of pensions are only taxed in the country of origin - you should ask about it because I think yours would qualify. I guess that's why we hire tax experts to help figure these things out, right? ;)

[@CJ-Photo]

Ps. Check out Article 18. I guess it depends on if the job you retired from meets the "Government Function" definition.

[@mascalzone2817]

An excellent related book is "Canadians Resident Abroad" by Garry Duncan, published (and sold by) Thomson Reuters. Now in its 23rd edition. Tax centric content. Not a cheap book but extremely informative. Don't think KZbin will allow me to post the weblink to Thomson Reuters website but quick search should easily find it.

[@leefeldman7675]

Hello D&M I am a fellow Canuck currently in Funchal for my second visit looking at properties close to the center. You mentioned your real estate agent and your architect in previous videos but I’ve watched them again and for the life of me I can’t find those references. Can you provide them here? I’ve fallen in love with a small house but want to work with people who come recommended. Thx!!!

[@Track_Us_Down]

Hello Lee! Absolutely- please email us at [e-mail] and we can provide you real estate and lawyer contact. And welcome to Madeira!! It’s easy to fall in 💘 with a place here isn’t it? Best of luck to you! Cheers! M&D

[@leefeldman7675]

Thanks very much for the advice Doug and Monique! Greatly appreciated!

[@zuzuburi6985]

please respond to my polite query: do international students in Portugal pay income taxes on their worldwide income or income from back home?

[@Track_Us_Down]

Hello! We are not tax experts. 🤪 If you are a resident in Portugal, then you pay taxes on worldwide income in Portugal. What you pay in your home country depends on your home country and if they have a tax treaty with Portugal. I’m not sure if as a student you are also a resident or not. You would have to find out. Please talk to a tax expert so you know exactly what you would pay in your situation. Good luck! Thanks for watching! Cheers! M&D

[@johnduffy532]

Do you pay taxes in Canada?

[@mascalzone2817]

I can't comment for the channel hosts. But my understanding is that if someone is tax resident, including NHR, in Portugal then there is no obligation to file personal income taxes in Canada.

[@Track_Us_Down]

Hello John! Thank you for watching and good question. We have had taxes taken off our pension for 2022, as well we sold rental property in 2022 and will owe capital gains . So yes, we will file a tax return for last year, as well as declare ourselves non residents. So that is for a Canadian tax advisor to help us through this transition year. Going forward - maybe as Mascalzone says, we will not file in Canada and only file as tax residents here in Portugal, and pay our taxes here under the NHR. ???? All this remains to be seen!! 😀 We will keep you posted on this channel! Cheers! M&D

[@ABUICHAN]

I am Nepali I want to come to Portugal.I love Portugal.

[@Track_Us_Down]

Hello! We are glad you love Portugal 🇵🇹 and we hope one day you can come and explore this beautiful country. Thank you for watching! Cheers! M&D

[@robinsaba9925]

Hi guys, question... does Fresh Portugal assist with Canadian Tax citizens? I am under the impression you are from Canada, but could be wrong? 🙂

[@Track_Us_Down]

Hello Robin! Yes we are from Canada and working with Fresh! Zeev will assist with Portugal taxes for us as expats. Thanks for watching and commenting! Cheers! M&D

[@Mr.S65]

Consult an accountant who’s knowledgeable… there aren’t many of those in the U.S.

[@Track_Us_Down]

Hello! Yes finding a knowledge person to get advice from is worth every cent. Thanks for watching and sharing your thoughts. Cheers! M&D

[@jase123111]

There are no longer tax breaks in Portugal. 😢

[@Track_Us_Down]

Hello! Yes you are correct - there is no longer the NHR. There is a new tax scheme that has replaced it- we do have a video about it. Fingers crossed they bring back the NHR or at least the islands decide to continue the NHR for those who want to move here. Thanks for watching! Cheers! M&D

[@ax6070]

you still have to file in the USA regardless if you make under the 102K a year, and the accountants are very very very expensive. add to that the problems with Obama's FATCA, FBAR banking will be a nightmare if you are like to open or keep your bank account. goog luck guys

[@Track_Us_Down]

Hello! Thank you for watching and for sharing your knowledge. Taxes are complicated. Cheers! M&D