income tax on Social Security benefits earned in USA. page 2 - Portugal forum

furnitureman · 2020-09-30T18:55:49+02:00

Hello, My urgent question is for older USA expats who have retired to/in Portugal on residency visa. We plan to relocate to Braga and not work. we are retired . Can anyone please tell us for sure if Portugal will tax our USA-earned Social Security benefits? We have heard (but not confirmed) that Portugal has recently (April 1, 2020) suspended the special NHR visa program intended for all NEW immigrants from non-EU countries like USA. The NHR visa allowed 10 years with NO TAX. Further checking indicated that any NEW USA immigrant entering Portugal on residency visa after April 1, 2020, will, in fact, be taxed at 10% of ALL income...even USA based/earned Social Security benefits. Hope to hear your reply...see our private email below our name. Michael and Sondra Waggoner USA ***

income tax on Social Security benefits earned in USA.

dennislg Active member

Member since 15 July 2020

dennislgActive member09 October 2020 19:23:41

#41

I found the exact text regarding Double Taxation between the US and Portugal at the IRS website.聽 See

2. In the case of an individual who is a citizen of the United States and a resident of Portugal, income that may be taxed by the United States solely by reason of citizenship shall be deemed to arise in Portugal to the extent necessary to avoid double taxation, provided that the tax paid to the United States will not be less than the tax that would be paid under the Articles of this Convention if the individual were not a citizen of the United States.

3. In the case of Portugal:鈥�(a) Where a resident of Portugal derives income that, in accordance with the provisions of this Convention may be taxed in the United States (other than solely by reason of citizenship), Portugal shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in the United States. Such deduction shall not, however, exceed that part of the income tax, as computed before the deduction is given, that is attributable to the income that may be taxed in the United States;