The Portuguese NHR tax regime is a key attraction for foreign citizens to move to Portugal. Key benefits include a 10% flat tax on pension distributions, including Social Security and IRA/401k distributions for Americans, and exemptions on many foreign income sources. When you are a US citizen or green card holder, you are liable to pay US taxes regardless of whether you live in the US or abroad. This makes the tax planning and optimization different for a US citizen under NHR than it would be for other nationalities.
The interaction between the US tax regime and the Portuguese tax code is complex and often requires specialist planning. With the right financial plan, you can live financially secure in Portugal even after the initial 10-year NHR period. Although Americans do not get the full tax advantage of NHR, there are plenty of financial planning opportunities available with the right advice and structures.
Book in a free consultation to discuss how we can help with:
- Pre-move financial planning to maximize your tax planning opportunities before you move to Portugal
- Maximizing the Portuguese NHR regime to potentially save money on taxes over the longer term
- Guiding you on what not to do – falling into poor tax structures or implementing inefficient planning for Portugal
- Creating tax efficient investment portfolios for the both the US and Portuguese tax regimes
- Connecting you with the right network of US and Portuguese tax specialists
Our process starts by considering your entire asset base and income, the Double Taxation Agreement between the US and Portugal, and your goals, preferences, and constraints. We then create a holistic, tailored financial plan to help guide you through your move to Portugal. Our services are best suited to long-term relationships where we add significant value and benefit to our clients’ financial security and lifestyle.
We do not provide tax, accounting or legal advice. You should always consult with a qualified professional in those specific areas before implementing any portion of the plan. There is no guarantee that any goals will be achieved or plans of action will be successful.
Advisory services in the United States are offered and provided through Beacon Global Advisor Network, LLC, a registered investment adviser. Registration as an investment adviser does not imply a certain level of skill or training and does not imply endorsement by the Securities and Exchange Commission (SEC) or any state.
by Alex Ingrim, Private Wealth Manager
T: (360) 701-8197