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Portugal Expat Forum

Dual Residency

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Prissie2
3/29/2017 12:28 EST

Is it possible to keep my home country (USA) as primary residency,; yet continue to live in Portugal as a resident while continuing to file and pay taxes in the US? Then apply for the NHR in order to not pay taxes in Portugal on my US income.
Does that even make sense?

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Edomshep
3/31/2017 14:03 EST

Hi-I am a U.S. Citizen born here but actually also Portuguese citizen via my parents. I will advise you to ask a tax person about this but I don't believe you can legally do that. You are required to pay taxes just like you are here. What happens is you pay taxes there and then some taxes here in the U.S. After those taxes of Portugal....how understand it. We are moving this year to Portugal so, although I am a citizen,
I need to pay taxes in both places too. You aren't paying full taxes here when you pay taxes in Portugal...it is a much lesser amount is what I have been told. However, to stay in Portugal past 183 days you need to pay taxes. However, you cannot stay in Portugal legally past 90 days without a visa. Once you are a legal resident, you are eligible for national healthcare and other services which is what taxes pay for. Here is a link that might help you. Feel free to private message me as well.
http://europa.eu/youreurope/citizens/work/taxes/income-taxes-abroad/portugal/index_en.htm

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Edomshep
3/31/2017 14:06 EST

Oh ...I forgot to mention. If you are a retiree, I believe you don't pay any taxes on retirement income for the first 10 years. Also, if lying are still working and work for certain industries like technology, psychology, medicine and a few others, you get a tax break in Portugal...first ten years you pay only 20% versus 40% as long as you are not a citizen but a legal resident. This is to help attract people to live in Portugal and build up certain industries there.

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