US 401k/Social Security Tax Treatment – Non EU Folk – Expats Portugal Community Forum
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US 401k/Social Security Tax Treatment


Posts: 4
Premium Member
Topic starter
(@oregonqpr)
New Member
Joined: 9 months ago

Planning a retirement move to Portugal and want to confirm how 401k withdrawals and US Social Security payments are taxed.

Am I correct to understand that once you become a tax resident in Portugal (183 days residence per year) then any US sourced income is taxed ONLY in Portugal?  If so, then applying for the NHR would then make all your income from the US taxable at 10% for 10 years until your NHR expires.

If anybody could share any knowledge or experience around this subject it would be much appreciated.

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Posts: 384
Admin
(@astridff)
Active Member
Joined: 1 year ago

Welcome to the forum. Your questions are very timely as I have just added this webinar to our calendar that will help you.

https://expatsportugal.com/event/portugal-d7-visa-nhr-tax-regime/

In the meantime, other members may be able to help you too. 

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Premium Member
(@oregonqpr)
Joined: 9 months ago

New Member
Posts: 4

@astridff. Many thanks I have signed up for the event.

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Posts: 148
 Bert
Premium Member
(@bert)
Estimable Member
Joined: 1 year ago

There is a dual tax treaty between Portugal and the US. This has much of the information you request. Rest assured Uncle Sam will continue to have his fingers in your pocket. 

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Premium Member
(@oregonqpr)
Joined: 9 months ago

New Member
Posts: 4

@bert.

I have looked at the dual treaty but the language tied my simple mind in knots.  Still can’t determine if SS is taxed in US and 401k is taxed in Portugal.  That is what I got from it but wanted someone with a sharper acumen or actual experience to confirm.

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Posts: 148
 Bert
Premium Member
(@bert)
Estimable Member
Joined: 1 year ago

I haven't actually read the treaty yet but did speak last week with an investment/tax advisor in Portugal that was recommended by Reis and Pellicano. He was supposed to forward me a copy of it, he said it was easy to read but I have yet to receive it. I will be looking into it further but my mind is swimming right now as I am in the midst of selling my house in the US. Let me know if you figure it out. 

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Premium Member
(@oregonqpr)
Joined: 9 months ago

New Member
Posts: 4

@bert

I’ve sent it to a couple of more educated friends for their take.  Best of luck with your house sale.

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