Labor & Taxes
5 US Tax Mistakes Americans Should Avoid After Moving to Portugal
US citizens living in Portugal remain subject to US tax reporting on worldwide income regardless of their residency status. Key requirements include filing annual US tax returns, reporting foreign bank accounts (FBAR) if combined balances exceed $10,000 at any point in the year, and navigating complex US tax treatments for certain Portuguese investment vehicles like local mutual funds or ETFs, which may be classified as Passive Foreign Investment Companies (PFICs).
Why it matters
If you are a US citizen living in Portugal, you must continue filing US tax returns and reporting your foreign financial accounts to avoid significant penalties, even if you are already a Portuguese tax resident.The Portugal NewsRead original ↗
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