US Citizens Working in Portugal

Not on the same income: a treaty is in force. You pay the higher of the two rates, not both.

The Euro (EUR). A 100,000 US-dollar salary is about 92,000 EUR at current rates. Your US tax is always calculated in dollars, so the exchange rate on the day you are paid feeds directly into what you report, and into how far the same nominal salary goes in Lisbon.

Portugal taxes its residents on their worldwide income, with progressive rates up to 48%. The Non-Habitual Resident (NHR) program, which offered reduced rates for qualifying expats, closed to new applicants on 1 January 2024. Its replacement, IFICI, covers only certain qualifying jobs, and this calculator uses the standard rates. You can claim foreign tax credits on your US return to offset taxes paid to Portugal.

The Non-Habitual Resident (NHR) program was a tax regime that offered reduced tax rates for qualifying expats. It closed to new applicants on 1 January 2024. Transitional rules let some people who became resident by the end of 2024 still join, mainly those with a job offer, work contract or visa application dated by 31 December 2023, or a lease dated by 10 October 2023. Its replacement is IFICI, the tax incentive for scientific research and innovation. If you were not a Portuguese tax resident in any of the previous five years and work in research and innovation or certain other qualified jobs, your income from that work is taxed at a flat 20% for 10 consecutive years. Most foreign income is exempt, except pensions, but income from places on Portugal's list of low-tax regimes is taxed at 35%. This calculator does not apply NHR or IFICI. Consult a tax professional to check whether you qualify.