Elizabeth Loves Her Retirement in Portugal

Mitty and Rejan have become fast friends to Bob and I. We love Braga just as they do and immigrated 3 1/2 years sgo.

Thanks for sharing about why you chose to retire in Portugal. I'm glad the process was easy for you. And it's good tip to consider health insurance coverage, especially as we get older.

Pleasant read, but, as usual, no mention of income taxes. The good news is Portugal has an income tax treaty with the USA to help avoid double taxation, but it’s not a guarantee you won’t be double taxed. Unless you renounce your US citizenship, you still have to file taxes with both countries every year, and the IRS will decide how to apply the tax treaty-for or against you. People with deep pockets may not care, but for average people the devil is in the details.

That is interesting Tony. We checked and you are correct, Portugal does have an International tax treaty on dual taxation. According to https://www.greenbacktaxservices.com/country-guide/portugal-taxes-for-expats/ that means you shouldn't have to pay taxes in both countries. But that might hinge on whether you are a resident, non-resident, or "habitual" resident. Like you say, the devil is in the details. If your income is relatively low, it shouldn't be too painful either way.

Thanks Admin:

I appreciate hearing from Elizabeth. Her and her husband have spent many years visiting Portugal before moving there. It was not an impulsive decision and that will likely increase their chances of it becoming a permanent move. However, I would like to hear from some people who took the plunge and then threw in the towel and returned to the USA, what some experts call Boomerang expats, or as I simply call Repats. You almost never hear from this bunch, I suppose, because who wants to talk about their losses? I read that most people who leave come back to the US within 5 years. I’ve done a lot of research on this, and it amazes me how most articles are overloaded with cockeyed optimism. I know as Americans, we suffer from optimism bias, but hopefully readers keep in mind that most of what you read at websites like International Living and Live and Invest Overseas is written by salespeople.(Can you say conflict of interest?). It also becomes clear from their anecdotes that most of these salespeople and other expats relocated abroad when they were under age 40, usually in their 20s or 30s for a job or to start a business, and then never went home. The chances of moving overseas permanently after age 50 seems pretty low. Why would you go to a lot of trouble and red tape for a temporary move in old age? Probably better to just play tourist. Unless you become quite financially desperate later in life, it seems like a lot of work for a nickel. The State Department does not keep records on most expats and can only make guesstimates to who comes and goes. But i get it- life in the States seems more money grubbing dog eat dog every day, and i don’t blame those who want something better or different in their twilight years. Still, there is something sad about leaving one’s country of birth, but if one has no better choice, it may become inevitable for more and more retirees, regardless of their dreams and schemes.

I found your reply so interesting Tony. It would be interesting to learn how many "repats" there are. In our case, we went back for three months because we were feeling homesick for what we left behind. But it only took us a month to realize we were actually more homesick for Braga than we had been for Sacramento! So we said our goodbyes and came back to Braga. We are still connected with our family and friends, but find that in our "home stretch", we really appreciate the quieter lifestyle and the less violent culture. Among other things, it's wonderful to walk home after a late night theater performance and feel safe. And there's a certain relaxation that seems typical of the culture here. No matter how short or long the road ahead, this is a nice place to spend it.

We just returned from a visit to Spain and Portugal yesterday. It appears that in the big cities, almost everyone lives in an apartment or condo. Detached residences are rare and are for the wealthy or are in the exurbs. That would be an adjustment for most Americans who love their cars. Traffic in the cities is crazy so most people walk, bike, use scooters or take public transportation. Again, very different from most of the US.

I just think that moving in retirement is highly over rated and pushed at retirees ad nauseam. I fell for it (not out of the country, but far away from friends and family) and have regretted it ever since. I can no longer afford to go back home.

I love my move from Midwest to Tucson area, but still considering Ecuador or Panama or even Thailand or Vietnam. I love all 4 places. Wish I could do about 12 to 18 months in each. I love the different cultures, so travel a lot now, but feel the pull to move again. I'm truly a nomad at heart and so glad I don't have family to make me feel guilty about the life I love