What will my taxes look like after I relocate?

Navigating a new tax system can feel overwhelming, but knowing what to expect is half the battle!

Once you relocate, you will likely become a tax resident in Portugal. This status is usually triggered if you spend more than 183 days in the country during a calendar year, or if you maintain a permanent home here.

The Portuguese Filing Timeline

The Portuguese tax year runs from January 1st to December 31st. As a tax resident, you will need to file your annual tax return (known as the Modelo 3) between April 1st and June 30th of the year following the year you became a tax resident.

Filing in the US vs. Portugal

If you are a US citizen, it is important to remember that the US requires its citizens to file federal returns on their worldwide income, regardless of where they live. This means you will effectively be filing two tax returns every year: one in the US and one in Portugal.

Avoiding Double Taxation

Completion of your Portuguese return requires careful attention to ensure all legal requirements are met and that you are maximizing your benefits. The good news is that the US and Portugal have a Tax Treaty in place. Through mechanisms like the Foreign Tax Credit (FTC), you can prevent double taxation on your income.

Because this requires specialized knowledge, we have several partners, who are true experts in Portuguese-American (and others for Portuguese-International) tax compliance. They will ensure your returns are filed correctly in both countries so you don't suffer from double taxation and can enjoy your new life with total peace of mind!