Does Portugal tax retirement income?

Last activity 07 April 2022 by slugsurmamates

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BongoBoyMember06 April 2022 21:11:55

Hi Everyone,

God willing I will be moving SOMEWHERE off of my retirement income. For some reason I am looking at out of the country locations. Does Portugal tax retirement? I am confused by what I read. I don't know if I did move there if I would rent or buy.

I also would have to pay for private healthcare.

Anyone pay for private healthcare?

Thanks

JohnnyPTPortugal Expert06 April 2022 22:02:30

4389

The Portuguese Non-Habitual Residents Tax Regime

https://www.expat.com/forum/viewtopic.php?id=911492

Private healthcare is paid anywhere in the world. Even public healthcare is...

BongoBoyMember06 April 2022 22:28:41

Yeah,

This is a bit confusing.

I THINK it means that if I can show I have to pay US federal income tax that I AM waived the Portugal flat tax.

Not sure

I wouldn't qualify for Portugal Healthcare

StrontiumSerial expat07 April 2022 10:47:19

324

Basically if you get an Portuguese NHR tax "exemption" then your worldwide income is taxed at 10% BUT I'd recommend you come over here as a visitor/tourist/holidaymaker for a few months and stay in several different places, talk to several different (local) accountants, lawyers, medical insurance people to get experience/information then decide where you want to stay or not, become resident or not, and what tax paperwork you want to do and if you want to rent or buy and how much stuff costs etc. or possibly decide Portugal is not for you.

slugsurmamatesSerial expat07 April 2022 12:52:54

253

Buy the "Living in Portugal" paperback from the Blevin Frank's website.

It's under €10 and will explain in detail many of the questions you have regarding pension, taxation etc.

Save you lots of time and effort in investigations and these guys are financial advisers, not laymen.

Worth its weight in Gold, IMHO

I used it extensively to plan my residency - under NHR - in Portugal.

BongoBoyMember07 April 2022 16:00:31

Thanks

So you are saying that under NHR plan even if I was paying federal income tax as an American to my government I would STILL pay a flat 10 percent?

I thought I was waived but I will check out that book

Thanks

BongoBoyMember07 April 2022 16:01:17

@Strontium

Thanks

I am a golfer and plan to visit next Winter

Possible December visit

slugsurmamatesSerial expat07 April 2022 18:07:14

253

@BongoBoy

You will pay flat 10% tax on specific income in Portugal.

You need to check out what income streams you personally receive and whether they are covered under NHR. Nobody can give you correct general answers without knowing the specific income streams.

Eg. "Pension" is not enough, as if you were a UK citizen, State Pension is allowed but State Occupational pension is not.

You also need to check with your own State & Federal Government Agencies how they tax under Foreign Residency.

You may possibly find both governments have an agreement how to tax. In UK that comes under DT (Dual Taxation).

You need to do a bit of work on this - or otherwise pay a Financial Adviser or/and Lawyer (Attorney) to do that work for you.

Unfortunately, we get it that you are a keen golfer but, unfortunately, that doesn't give you any specific tax advantages under Portuguese Financas.

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