One potential downside worth noting, although I am still a huge fan of retiring in Portugal. It appears that Portugal would tax distributions from a Roth IRA as subject to the 10 % tax on pensions. Since the US does not tax Roth distributions, the foreign tax credit would not apply to this tax. Because of this, I am not doing Roth conversions on my IRA and 401k, when I would do them if I was retiring in the US. Still Portugal is a retirement paradise, especially the Silver Coast where we bought.
Very useful information. Thanks! If I understood correctly, if I plan to retire in Portugal on my SS and say 4% withdrawal from 401k, I would have to apply for an extension in US, pay my Portugal taxes on the sum of my SS and 401k (10%, right?), then when I file my US taxes I use this amount as a deductible . Did I understand this correctly?
Best rent if you can find suitable place . Porto , Lisbon , Algarve to name a few are very expensive. Nothing under 1 million in Lisbon/ Porto and I was in Cascais this summer and fall and it is very hard to find a nice place for under €2000 a month. That is for a 2+ 1 with covered parking and a lift . Cars are outrageously expensive. I bought a 2018 mini for €28000 but it was still cheaper than long term rentals as there’s very little availability. So many tourists all clamoring for rentals. I am not complaining, simply sharing. My friend has looked at maybe 50 apartments for sale in under 6 months and out of that only 1 was nicely remodeled then the owner decided at the last minute to ask for 100k more .
Not sure if you've seen it, but we published an episode on Spain a few weeks back. Thanks for the recommendation! czcams.com/video/y-ayp9o_49E/video.html
Great question - a lot of people are curious why anyone would want to leave such a great spot. Stan was originally an attorney and then shifted in financial advising, which is what brought him back to the U.S., although he is a strong proponent of a satellite office in Portugal!
One potential downside worth noting, although I am still a huge fan of retiring in Portugal. It appears that Portugal would tax distributions from a Roth IRA as subject to the 10 % tax on pensions. Since the US does not tax Roth distributions, the foreign tax credit would not apply to this tax. Because of this, I am not doing Roth conversions on my IRA and 401k, when I would do them if I was retiring in the US. Still Portugal is a retirement paradise, especially the Silver Coast where we bought.
To all of you visiting us, we hope you enjoy your time over here :)
Very useful information. Thanks! If I understood correctly, if I plan to retire in Portugal on my SS and say 4% withdrawal from 401k, I would have to apply for an extension in US, pay my Portugal taxes on the sum of my SS and 401k (10%, right?), then when I file my US taxes I use this amount as a deductible . Did I understand this correctly?
Best rent if you can find suitable place . Porto , Lisbon , Algarve to name a few are very expensive. Nothing under 1 million in Lisbon/ Porto and I was in Cascais this summer and fall and it is very hard to find a nice place for under €2000 a month. That is for a 2+ 1 with covered parking and a lift . Cars are outrageously expensive. I bought a 2018 mini for €28000 but it was still cheaper than long term rentals as there’s very little availability. So many tourists all clamoring for rentals. I am not complaining, simply sharing. My friend has looked at maybe 50 apartments for sale in under 6 months and out of that only 1 was nicely remodeled then the owner decided at the last minute to ask for 100k more .
I was waiting to mention the article 122 if need to pay taxes or not and how many years tax free if it's none taxable
Portugal is very nice, like Cuba, not for Americans.
Brazil hold my beers 🍺
Would be nice if you could make a similar episode regarding Spain 🇪🇸.
The video would be entitled "982 things to avoid".
Not sure if you've seen it, but we published an episode on Spain a few weeks back. Thanks for the recommendation!
czcams.com/video/y-ayp9o_49E/video.html
Why did you move back from Portugal then?
Yep my question also.
Great question - a lot of people are curious why anyone would want to leave such a great spot. Stan was originally an attorney and then shifted in financial advising, which is what brought him back to the U.S., although he is a strong proponent of a satellite office in Portugal!
I have a funny feeling that the 10 year NHR was up! Then the Portuguese tax rate system quicks in which is among the highest in Europe.
👏💚🇵🇹