Yes since 2023, it's now taxed in Portugal if you hold for less than 1 year (until 2022 was tax free, even less than 1 year).
Exactly, it's similar as Germany. However Portugal has one more huge advantage : NHR (non habitual resident) tax-scheme. You get this statut for 10years you are tax free on your foreign income (dividends, interests, royalties). Kind of temporary "territorial tax scheme".
Until 2022 private foreign pensions (for retired people) was tax free too under this scheme. Now it's taxed 10% due to other EU countries pressure (for the new applicants).
NHR-Portugal has provided extensive benefits to residents. As of 2009, the "habitual residency" of Portugal residents is a administrative and financial system designed to attract foreigners. Tax efficient pension income for 10 consecutive years benefiting new hopefuls in Portugal.
Two categories can benefit from the NHR-regime:
# Retirees who receive pension from abroad.
# Individuals and investor who can Structure Their affiair to Sync with the Regime..
Details:
https://www.libertyrealestate.pt/detail/nhrnonhabitualresidenceresidenceinportugalresidencyinportugal/12264?gclid=Cj0KCQjw1_SkBhDwARIsANbGpFvZr0Q2bAALvlG2wgb6ja8mcNdZDQgp9ozQlfuf7-UHBH3n03gmL7gaAvOnEALw_wcBMainly depending on these two categories (NHR) the organization works and it can work with great benefits and tax free.
Portugal is interesting, apart from that 10% tax for pensions (and I assume, social security payments for US citizens).
Not too hot of a situation, considering that i would still have to pay 12-whatever % to Uncle Sam.
Basically, a double taxation, unless i fundamentally misunderstood the conditions.
The only advantage i can see is no tax on crypto locally if held more than a year, albeit US tax would still apply.
The only benefit is easy travel within Europe as everything is closer, in comparison with transatlantic flights.
Yes i don't know all the specificities as US citizen (as in US you are even taxed based on your citizenship), so maybe not advantageous as for EU citizen or some other countries.
I am personally under this tax scheme. Just a quick story. I met a US guy in Lisbon month ago (from SF). He is based now in Portugal trough investment (golden visa = 500K minimum to invest in real estate), and you can get the Portuguese passport in 5 years after your investment. Now it's not possible anymore to invest in Lisbon for the golden visa, you have to choose another place/city in Portugal to apply. Can be interesting as a global citizen strategy with 2/3 passports and the possibility (at a certain point / depend the own situation) to cancel the US citizenship.
(my 2cts, for this topic).
Thanks. I might like to have some other friendly countries passports, but don't want to pay for them, lol.
I looked into Portugal situation (as well as Puerto Rico close to US) and could not figure out what is the real advantage there, apart from, in Portugal case, getting a EU citizenship in 5 years, if someone needs it. US being a country that taxes citizens worldwide does not help as far as collecting other countries passports and also considering that the
current cap gains regime is not that bad.
I think that if the world would be in a deep recession, many countries might restart these programs, though.
I might want a residence somewhere more cold than here (Texas), at least for about half of the year (during summer, which is May-October here if you consider temperatures only).
Canada is very attractive in this regard and you can stay up to 180 days on a visitors visa, apparently.
