Calculator · US retirees
Retiring to Portugal on US income?
The US–Portugal tax treaty decides which country taxes each kind of retirement income. Your IRA and 401(k) are taxed in Portugal, a US government pension is generally left to the US, and Social Security can be taxed by both, with Portugal crediting the US tax. Enter yours to see the Portuguese bill.
Annual amounts in euros. Convert dollars at the exchange rate for the year you're declaring.
Traditional IRA/401(k) withdrawals and private-employer pensions. Taxed in Portugal.
Gross benefits. Both countries can tax it; Portugal credits the US tax.
US federal tax attributable to your benefits. Portugal deducts it, up to its own tax on them.
A defined-benefit pension for federal, state or local government service, e.g. a FERS or CalPERS annuity or military retirement pay. Taxed by the US; see the caveat below. TSP and 457/403(b) withdrawals are not clearly covered.
Filing
Portuguese tax per year
€11,580
23.2% of €50,000 total income
Portuguese tax only: as a US citizen you also file a US return, where the treaty and foreign tax credits stop you paying twice. Not modelled: other IRS deductions (health, rent, dependants), carrying an unused credit forward to later years, Roth accounts and investment income. Estimate under the 2026 rules.
Which country taxes what
- IRA, 401(k) and private pensions: taxed only by your country of residence, Portugal (treaty art. 20(1)(a)). The US still taxes its citizens and gives the credit on the US side.
- US Social Security: the US may tax it (art. 20(1)(b)), and Portugal taxes it too, deducting the US tax paid on it up to its own tax on that income (art. 25(3)(a)).
- US government pensions (federal, state or local service): the treaty gives the US the right to tax them (art. 21(2)), unless you are also a Portuguese national, and Portugal counts them when setting your rate. A saving clause leaves open whether Portugal can tax them for residents with "immigrant status"; the calculator shows both figures.
The details, including the Roth question and how forums disagree on Social Security, are in the US retiree tax guide.
Two tax returns a year
Get a heads-up before each Portuguese deadline.
Portugal's IRS return runs April to June, separate from your US 1040. Get a short email a week before each Portuguese tax deadline. Usually one to three emails a month.
2026 rates — last verified against official sources (Portal das Finanças, Segurança Social, Diário da República).