Help a USA freelancer understand my tax obligations

Hi, Welcome

Would this work qualify me for the NHR 20% tax rate?

Yes, you are qualified to NHR 20% tax rate (applied to independent professionals who are NHR in Portugal and who carry out scientific, artistic or technical activities).

Web designer has activity code 2166 (you can confirm this in the PDF of post #8, page 142) and is part of the general category 21 which is eligible for NHR Value-Added Activities.

21 - Specialists working in physical sciences, mathematics, engineering and similar technical fields;

List of Portuguese Value-Added Activities (2020)
https://www.expat.com/forum/viewtopic.p … 43#5000153
(Post #6 and #8)


Are there any other Portuguese taxes on that income beyond standard income tax, such as a social security tax?

I also know I'm obligated to pay taxes in the US, but I also know that the US and Portugal have a double taxation agreement in place. If I understand that correctly, I'd likely not have to pay any income tax in the US, since I'm likely to pay more in Portugal. Is that a correct way of looking at this?

I'm also struggling to understand my obligations regarding self-employment tax in the US. As a freelancer, I'll need to pay the 15.3% tax for social security, medicare, things like that. Is there an equivalent tax in Portugal? Would I have to pay both, or will the double taxation agreement address that, too?


You can read this topic:
NHR Tax Regime
https://www.expat.com/forum/viewtopic.p … 92#5201641
(Post #16 & all)

If you are still in doubt, let us know.

You can have access to the National Health Service in Portugal. Optionally you can also have private health insurance, if you wish.