Tax in Portugal & What to Expect Without the NHR

[@ExpatsPortugalCommunity]

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[@rkurtw]

So how about a worked out example showing how one reaches the 48% progressive tax rate…or does not reach the 48% tax rate….because yes…it has totally reconfigured my retirement planning now moving Portugal from the first choice to something more like 3rd, 4th or 5th at best

[@imirim]

Great video. My tax advisor says that NHR ending is not the end of the world and there are ways to manage taxes effectively without it. I am curious to know if there is a DIY Portuguese tax application like the computer program TurboTax in the United States. Just curious to see if there are tax calculators that we can get ball park estimates of what taxes in Portugal might be. Not intending to use such for the real filing, we definitely need human advisors for this topic.

[@iwanttovote6053]

It appears that there are % for various types of deductions BUT there is also a pretty low MAX in Euros. For instance, 15% of health expenses, up to a limit of €1,000. This may not give much relief, depending.

[@CJ-Photo]

My question is: what is considered a public service person in Portugal related to taxes? Sadly, I can't afford to live there AND be taxed at the full rate. My original plan was to buy a small house/condo with a 10 year mortgage that would be paid off right at the time I'd have to start paying full taxes - which I'm happy to pay but just can't afford to pay them AND have a mortgage. If my state pension was exempt, that would change everything but I can't get an answer from anyone.

[@myitaliantherapyginafiore4414]

i was all set up to spend 3 months and buy a property then apply in 2024 for residency. Then, as you know they announced NO MORE NHR. So I changed my trip around only spending 3 weeks in Portugal and then heading to Italy. With no NHR that means I have to pay tax on my capital gains, interest, SS and the like. I was moving early. So then I hear they reinstated in through 2024. So I am very dismayed with Portugal. Too inconsistent. I am going to look at SOuthern Italy and see what happened with Portugal in 4 to 6 months. I cannot deal with all the stress and how everyone is so CRAZY. The entire reason I am leaving US for Europe is for a more mellow lifestyle and I cannot afford a lot of extra tax because I am only 60 and do not get my SS for 7 more years. So being taxed on my capital gains and interest higher will affect my ability to move to Europe early. Wait and see...CRAZY

[@maisiepoot5574]

I recently read that Italy has a special 7% tax rate if you settle in a town of a certain population size in southern Italy. May be worth looking into.

[@myitaliantherapyginafiore4414]

you are correct a certain size and a particular visa...thanx@@maisiepoot5574

[@Nubianette]

Portugal has been winding down the NHR for about 3 years. When I 1st started researching moving to Portugal, it was 0%, not 10%. I’ve also considered France. The European lifestyle has higher taxes, but more benefits. Also, knowing your tax liability is important. Much of the tax you’d pay in another country (other than the US), is a US tax right off.

[@flylord4361]

@@Nubianette Not true. US taxes on us based income. But if your making money in Portugal, its not US based.

[@Nubianette]

@@flylord4361 I was only referring to pensions and retirement. I do know, if I made money outside of the US, I would still need to report it on my US taxes.

[@369dabbler]

Forget Portugal without the tax breaks Empty place unless in city

[@myitaliantherapyginafiore4414]

So as of today we have no idea whats happening with NHR? When do you think we will?????

[@maisiepoot5574]

The fate of the NHR will depend on when the parliament approves the State budget for 2024.

[@myitaliantherapyginafiore4414]

that is why I am making sure I have lots of options. If they extend it to 2025 that's only way it will work for me. Otherwise I cannot afford the taxes won't have enough to live on. I cannot apply for residency until after my house sells in fall/winter 2024@@maisiepoot5574

[@glicmathan1771]

50% tax on the capital gains from the sale of one’s primary residence…OUCH!! A single person in the U.S. is not taxed on the first $250,000 of capital gains from the sale of a primary residence. Anyone considering moving to Portugal and renting their house for an income should think twice about how much you will lose one day when you sell it. I would definitely sell before applying for residency. We also need to consider any anticipated inheritance, including real estate, that may one day be taxable. There are many more attractive countries than Portugal with much lower tax rates. These videos have been very sobering; pushing me away from my long term plans to relocate to Portugal. I love the country but have to consider other options now. Perhaps I’ll buy a vacation property there.

[@maisiepoot5574]

If i understood Duarte correctly, only 50% of the capital gain on the sale of a residence is subject to tax in PT. And if that is the case, a cap gain of $250,000 means that $125,000 would potentially be subject to tax in PT.

[@Nubianette]

@@maisiepoot5574this is what I understood as well.

[@JasonBrownafewmomentsl8er]

So for one capital gains tax depends on where in the u.s. There's also ( like explained ) a double taxation agreement do in Portugal if the tacmx rate is higher you only pay the difference, to use his example if in the u.s. you pay 15% and in Portugal the tax rate is 20% then in Portugal that means you only pay 5% because you already paid the first 15% to the u.s.

[@ExpatsPortugalCommunity]

hI @glicmathan1771, according to lawyer Dr. Daniel Reis in a previous webinar, currently there is no inheritance tax to pay in Portugal - kzbin.info/www/bejne/nmfYkJmMhtiGbNUsi=ayRbQIqd8t4FPltD&t=2190

[@mandorlap8091]

How about the kids turning 18 shall we apply for them for NHR?

[@JasonBrownafewmomentsl8er]

Do with the double taxation agreement does that include income from social security ? In the u.s. You get taxed on the first 85% do you get taxed on 100% minus what you paid in u.s. Taxes ? If so how do you work out that math

[@SearcherforDiscogs]

What are deductions for D8 visa?

[@rbir2653]

Just stay as a tourist. No tax to pay.

[@dougharris4853]

Tax systems around the world have become a burden to society in general. Keep it simple