March 25, 2025

Annual Portuguese Taxes for American Expats

Some of the relevant issues that were addressed include:

Recent Policy Proposals & Their Impact

  • Updates on Portuguese tax policies affecting expats, including potential changes to the Non-Habitual Resident (NHR) regime
  • How proposed U.S. tax policies may impact expats living in Portugal

2025 Tax Planning Strategies for Expats

  • Understanding Portugal’s progressive income tax rates and planning accordingly
  • Navigating the expiration of the NHR program and alternative tax strategies
  • Capital gains taxation in Portugal vs. the U.S. and how to avoid double taxation
  • U.S. tax planning strategies, including:
    • Roth IRA conversions—timing and tax efficiency for expats
    • Using the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC) effectively
    • How Social Security and retirement distributions are taxed in both countries

Year-End Financial Actions to Take

  • Ensuring compliance with Portuguese tax filing deadlines (IRS vs. Portugal’s Finanças)
  • Reviewing U.S. FBAR (Foreign Bank Account Report) and FATCA obligations
  • Strategies for avoiding underpayment penalties and meeting estimated tax requirements

We hope you enjoy!