Moving from the United States
Moving from the United States to Portugal: the tax checklist
What to close in the United States, what to open in Portugal, and how to get the year you move right.
In short
Moving from the United States to Portugal means closing your tax residence there and opening it here, ideally on the same date. Portugal and the United States have a double tax treaty, so income is not taxed twice, but the timing and paperwork on both sides decide how smoothly the first year goes.
On the US side
| Step | What to know |
|---|---|
| Visa first | US citizens need a Portuguese visa to live in Portugal, for example the D7, the D8 digital nomad visa or a work visa. Sort this before the tax steps. |
| You still file US returns | The US taxes its citizens wherever they live, so you keep filing a federal return every year. The foreign earned income exclusion or foreign tax credits usually stop the same income being taxed twice. |
| Your state | Some states can keep treating you as resident after you leave. Close your state residence clearly: driver's licence, voter registration and address. |
| Foreign account reporting | Portuguese bank accounts have to be reported to the US (FBAR and FATCA forms) once balances pass the thresholds. |
On the Portuguese side
- Get a NIF before or as soon as you arrive. See the NIF guide.
- Move your tax address to Portugal. From that date you are taxed as a resident on worldwide income.
- Check IFICI if your work qualifies, and apply by 15 January of the following year. See the IFICI guide.
- Register your activity before your first invoice, as a freelancer or through your own Lda.
- File your first IRS return between April and June of the following year. See your first IRS return.
The year you move
Most problems come from the two countries using different dates. Make the date you leave the United States, the date your Portuguese tax address changes and the date you start work in Portugal match as closely as you can, and keep proof of each.
Frequently asked questions
Do I still pay US tax if I live in Portugal?
You still file a US return as a citizen. Portugal taxes you as a resident, and the US-Portugal tax treaty plus US foreign tax credits or the earned income exclusion normally prevent double tax.
Do I pay Social Security in both countries?
No. The US and Portugal have a social security agreement, so you normally pay into one system only, depending on where and for whom you work.
Ask a specialist
Tell us where you are in the move. A Certified Accountant replies within two working days. Questions about visas, housing or insurance go to a vetted partner, only with your OK.