Why Americans Shouldn't Move to Portugal? 🇺🇸 🇵🇹

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Portugal is one of the most popular countries among out viewers, and many are relocating to this lovely country. It's one of the few countries in the world where you won't pay taxes on crypto income, and you can set yourself up to not pay any tax up to 10 years, under NHR regime.

However, despite the popular belief Portugal is just not a good option for Americans. As you probably know, America is the one of the few countries in the world that has citizenship based taxation.
Meaning no matter where you live in the world you'll be paying US taxes as an American.
Even though many other people can use Portugal as a part of their offshore tax strategy to not pay any taxes legally, this is simply not an option for Americans.

There is a mismatch between where Americans get benefits abroad, and what Portugal offers in terms of benefits.

So if you're an American can you get any advantages when you move abroad? Well, you can get foreign earned income exclusion- which is about 110 000 USD per year tax free. This is only applicable to earned income, not the investment income.
Secondly, you can benefit more from your foreign offshore company. You can get a lower GILTI tax rate.

However, the overlap between Portugal and the US in this regard will not work, so if you move to Portugal you will not get any tax benefits. You can still get a Golden visa and a residency permit. This will lead to EU citizenship after 5 years, however unless you renounce your American citizenship you will not be getting any tax benefits if you move to Portugal.

Who are we and what do we do?

We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.

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Author: Michael Rosmer

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[OffshoreCitizen]

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[Qoqsik]

I have been living in Portugal for about a year. I pay 20 percent of everything from income (NHR) and this is one of the best conditions that I have seen in Europe.

[realhawaiio]

Usually, from my understanding, Portugal is a destination for safety, the easy going lifestyle, good healthcare, good weather, easy residency / citizenship, and not so much the tax situation.

[Old_man_Vibez]

Tough choice, live in a country that has no health, poor education and is inward looking. Or, move to Portugal and live a wonderful lifestyle.

[scenicviews]

We've been exploring Portugal for about a year and love what we are discovering so far. Being here is the best teacher and we're learning new things every day. Thank you for your contribution!

[MasterTSayge]

I lived in Portugal since 2014 after I retired from working for 10 yrs in USA.
I rent out my house in America and live in Portugal and love it!
My rent is only 410 euros, healthcare free, and plus I was able to go back to school again for FREE!.
Side note, I broke my arm 3 years ago and paid $0 on healthcare, WHAT THE HELL IS HE TALKING ABOUT?!
Most importantly the people here are friendly and non-judgemental at all. I couldn't make a single friend in America at all. Go to any Portugal nightclub or social event and you'll make friends easily!
This guy wants Americans to stay in USA to feed the corporate machine. Good luck with quiet quitting!

[inhocsignovinces]

Several American folks I've seen on Youtube that have moved to Portugal have done so in order to double their living standard by halving the living costs. The great, pensioner-friendly weather seems to be an added bonus.

[onkelreisendemac]

The Main advantage with Portugal is the low income requirement that Andrew Henderson points out with 600 Euro a month income in order to get into Schengen, or 7200 a year. The other is the foreign exclution of 110.000 USD, so no taxes to the US if your earning is below that. So Portugal is a great move when you have low income and want to live in Schengen and work toward a citizenship 🙂

[ecuadorexpat]

I moved to Cuenca Ecuador 2 yrs ago and it was the best decision of my life..I live here comfortably on 1200 a month SS
I learned Spanish and live outside the city .The locals are so nice ! We have a huge helpful Expat community here..great medical care and life is TRANKILO..

[anaramos]

Life is more than taxes, but I understand your point: your job is talking about taxes and making comparisons. By the way, do you live in the USA, or pay taxes somewhere else?

[anaramos]

Offshore Citizen, by the way why don't you use your own name?
All the numbers, comparisons, comments you make are superficial and misleading. You cannot judge a country without visiting it and study the way it works finantially or in other any aspect. I've been to the States as a tourist only and do'nt want to return. Poor housing, poverty, healthcare system and education system are deplorable, loads of low quality clothes, if you want good quality hygene products you do pay for them and the list could go on. I'm not surprised by the quantity of Americans from the USA who want to live in other countries especially in Europe.

[hpcarlos]

Portugal is Very beautiful with great people & one the Safest Countries in the World.

[uncledon]

Don't watch this....it's all negative. Portugal is a wonderful place to live or visit.

[crabLT]

Seems the Portuguese are non too happy you Americans are flocking there.

[randyleebear]

Hi Michael, I believe pension income is exempt from Portuguese tax to US citizens. The tax is controlled by the Tax treaty. Thus I believe the US citizen who is resident of Portugal has no tax on Pension income from US sources because it is taxed at the source. There is no tax benefit or burden to the US person because the tax treaty makes the burden neutral. A US person needs to be very aware of the specifics of the tax treaty when considering residency in another country. Since a US person is also taxed at the State and sometimes local level, being a resident of Portugal may significantly reduce the overall tax burden. There is also the benefit of cost of living and quality of life.

[andrewrosenberg]

Thank you. Always informative and I really love that you avoid click bait and hyperbole.

[TravelingisFREEDOM]

This seems to be a very interesting place, I hope I can visit sometime in the future. Seeing and sharing places like this is why I love traveling and make videos so much! And please keep up the great job! Subscribed!!

[rih]

I get that people really like Portugal because of our quality of life but the amount of Americans coming to live in Portugal where everything is cheap for them is making our rents and etc. way too expensive in comparison to the Portuguese minimum salary or even medium salary, making it impossible for Portuguese people to live in their own country. So dear Americans, please, leave!

[billobrian]

Although what you say is true in a sense, it is far too oversimplified. First it doesn’t really address retirees and is geared to people with earned income. For retirees Portugal is better than any EU country. Of course you won’t save compared to staying in the US because the US taxes worldwide income, but for many staying in the US is not attractive for various reasons, including horrible health care system, too many guns and violence, politics and division, etc. if for example you would otherwise be living in the U.K., Portugal is much better: income tax less than half, no inheritance tax, free travel to Schengen area, etc.

[rogerdiogo]

Americans will have a hard time assimilating here, Portugal is so slow.