bluewind
6/3/2013 21:12 EST
I heard that Portugal is going to begin taxing expats on money earned overseas, such as pensions, social security benefits, etc., but i have been surprised at how hard it is to find any info on this. if this is true, this is a huge issue. can anyone fill me in on whether pensions, etc, from the usa is now taxed in both the usa and portugal. thanks
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craigandmicki
6/4/2013 06:14 EST
Bluewind:
Easy answers for you....Just go to the main Expat Exchange page, move down the left had column to the Expat Tax & Legal section, and reach any of the listed resources. Your question seems simple, yet there are so many individual aspects to such a question that you really need to consult an expert.
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bluewind
6/4/2013 20:27 EST
Thanks for the reply. Yes, I already figured that I would need to consult with an attorney before moving to Portugal or any country for that matter. It would be foolish not to do that, but I just wanted to get some ideal of what is going on now, with all the changes going on in Europe. Thanks again. John
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ofilha
6/5/2013 07:43 EST
Well, i live in the US, and the US and Portugal have an agreement whereby if you pay taxes on your income in the US, you won't pay them in Portugal.
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bluewind
6/5/2013 16:22 EST
Ya, your right. I think it's called double taxation agreement or something like that. I read that recently, Portugal has been considering taxing expats on foreign earned income, so i checked with the irs website and others and found no new info. on this. The concern ccame mainly from British websites, since a lot of Brits live there. Maybe it doesn't apply to Americans.
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ofilha
6/5/2013 20:17 EST
I have not checked in a while but i think there is a way to notify the portuguese authorities about your paying taxes in your home country.
A Portuguese consulate or embassy may have some information for you.
Here are a couple of websites that may help, they are in Portuguese.
Ministry of finance:
http://www.portaldasfinancas.gov.pt/at/html/index.html
the citizen store:
http://www.portaldocidadao.pt/
and finally the portuguese government web site:
:http://www.portugal.gov.pt/pt.aspx
I will look in my past emails if i have that information. Sorry the sites i gave are in Portuguese.
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ofilha
6/5/2013 20:27 EST
I have another site for the portuguese government. It is the ministry of Internal administration. Dont' know if it has that information.
http://www.sef.pt/portal/V10/EN/aspx/page.aspx
Another idea is to contact the American Embassy in Portugal. They are pretty helpful and may be able to help you with this question.
http://portugal.usembassy.gov/contact.html
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ofilha
6/5/2013 20:39 EST
There is a form you fill out in portugal - formulário mod. 21-RFI - and i think you send it to the country where you get your income. For questions email them at this address below:
dsri-duvidas@dgci.min-financas.pt
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jamesensor
10/25/2013 05:25 EST
The situation for people from other EU member states is relatively straightforward. So long as they live in Portugal for more than 183 days in any calendar year, they become taxable in Portugal. Due to double taxation treaties they will not pay tax twice. But if, for instance, tax is deducted in England at source for dividends or bank interest, this can be claimed back on the Portuguese tax return.
The difficulty with the UK is that it considers anybody with a home in the UK to be tax resident if they soand an average of just 82 days a year there during the years that end on March 31. So it is quite possible to be taxed in both countries. Once again the amounts can be offset in the other country except where a tax such as the Spanish or French wealth taxes do not exist in the other country.
Where the rates are higher in one country than the other - a normal situation - it may not be possible to recover all of the payment.
The US situation may be different as the IRS expects Americans to pay all taxes in the States, wherever they may live. But there are signs that this may change, US residents in Spain, for instance, are being asked to declare all of their world-wide assets, obviously with a view to them being taxed in future. Failure to comply brings a €10,000 penalty and much increased tax rates.
Portugal does not seem to be contemplating a wealth tax as yet, but Angela Merkel is suggesting that all euro deficit countries should repay their loans from revenues garnered from new or higher taxes on wealth.
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