Blanca Valbuena

tax question

AskCategory: Immigrationtax question
Anne asked 5 years ago

Hi Blanca:

This question may be too technical, so I understand if it is not something you can answer.

I'm thinking about retiring to Portugal in a few years. I'm an American and will be receiving U.S. Social Security retirement income every month. I know I can have it direct deposited to a bank account in Portugal, so that won't be a problem.

But I have not been able to find out if I will owe personal income tax to Portugal on my U.S. social security retirement income. I know I will need to file an income tax form with the U.S. every year, but what about Portugal? Does Non Habitual Residence status treat U.S. Social Security retirement income as a pension and exclude it from taxation? The information I've found so far has been confusing.

Thank you,

Anne

1 Answers
Blanca Staff answered 3 years ago

Hi Anne,

The NHR tax regime makes your retirement income (like social security) tax free for about 10 years. You will need to file taxes in both the US and Portugal.

Blanca