Happy Sunday, noble friends of the realm! 👑 Today we’re in full medieval costume, so suit up and let’s ride into today’s adventures.
This week, I was struck down by a most vicious plague (read: yet another illness) and bravely offered myself as tribute to test the mystical powers of the SNS24 teleconsultation service. And lo and behold, it worked! No gold coins exchanged, no horses required, just a free doctor’s consultation and an antibiotic scroll (okay, prescription). I’ll share the full healing ritual in next week’s newsletter, so stay tuned for that tale.
But today, we face a different kind of looming threat. One that doesn’t strike with fever, but with forms, percentages, and... the end of NHR. 🏰
While this scroll focuses on American expats (for the sake of brevity), the wisdom within applies to all: begin your tax planning before the dragons arrive. And if you need a council of advisors, I highly recommend the skilled minds at Green Ocean Global Advisors and FRESH Portugal. They won't slay the beast for you, but they'll hand you the sword.
Now, if you (like me) were never granted NHR knighthood, fear not. This month brings a lineup of medieval festivals around Portugal where you can feast, dance, and momentarily forget about tax codes and bureaucracy.
And next week we venture into the perilous world of Portuguese property, where hidden costs and surprise taxes lurk behind every charming azulejo tile.
On the scroll today:
📜 Events to take you back in time
⏳ The clock is ticking on your NHR… are you prepping for it?
🛒 Portuguese lesson: getting familiar with your shopping list
So, grab your goblet, sharpen your quill, and let’s begin.
📷 Pic of the week
Tomar, a picturesque town in central Portugal, was founded in the 12th century by Gualdim Pais, the Grand Master of the Knights Templar in Portugal. The town became the headquarters and stronghold of the Templars, who built the impressive Castle of Tomar and the Convent of Christ—now a UNESCO World Heritage Site. Tomar was the last Templar town to be commissioned for construction, and, during a siege in 1190, the Templars successfully defended it against overwhelming odds, cementing their legendary status. Tomar’s streets, monuments, and annual festivals still echo the mysteries, legends, and enduring influence of the Knights Templar.
📰 What’s Happening
🥙 FOOD & DRINK
Silves Beer Fest (15-19 July, Silves, Algarve): One of Portugal’s most iconic and long-standing beer festivals, returning to Praça Al-Mutamid in Silves. Visitors can enjoy dozens of craft beers from across Portugal, regional gastronomy, street food, and a lively handicraft market. The program features daily music shows, DJs, and entertainment, making it a vibrant gathering for both locals and tourists. The festival’s reputation as one of the best beer events in the country has only grown since its relaunch in 2017, now recognized as the top beer festival in the Algarve
Chefs on Fire Pop-Up Aveiro (18-20 July, Aveiro): an unmissable celebration of open-fire gastronomy, live music, and vibrant community spirit, all set against the picturesque canals of Aveiro. This unique festival brings together 12 acclaimed national and international chefs who create mouthwatering dishes—meat, fish, vegetarian, and desserts—over wood and flames, all included in a four-course tasting menu with your ticket.
⚔ CULTURE & HISTORY
Óbidos Medieval Fair (17-27 July, Óbidos): The fair transforms the walled town of Óbidos into a vibrant medieval village, complete with costumed actors, musicians, jousting tournaments, and bustling market stalls offering traditional foods and crafts. This year’s theme centers on the legendary love story of Pedro and Inês, with dramatic reenactments and storytelling bringing Portugal’s history to life. Visitors can enjoy live entertainment, medieval feasts, and a fully immersive atmosphere complete with wooden mugs and straw-covered streets, making it a magical and family-friendly event that feels like stepping straight into the Middle Ages.
Viagem Medieval (30 July-10 August, Santa Maria de Feira, Aveiro District): Europe’s largest medieval reenactment festival, held annually in the historic town of Santa Maria da Feira. The Viagem Medieval is widely regarded as the most impressive and immersive medieval festival in Portugal, attracting thousands of visitors each year. It offers a unique opportunity to step back in time, enjoy spectacular performances, and experience the tastes, sounds, and sights of the Middle Ages in an authentic setting.
👩🎤 MUSIC
Kylie Minogue – Tension Tour (15 July, MEO Arena, Lisbon): The pop icon returns to Portugal as part of her 'Tension Tour', performing hits from her latest album and classic favorites.
💰 The Hustle Fund — Money, Taxes, and all things Financial
There’s been no shortage of change lately in the world of immigration and foreign residency, and, unfortunately, not the fun kind. While it's tempting to bury our heads in another bottle of cheap and delicious Portuguese wine, that won’t make the situation disappear.
That’s why I’m so grateful for our brilliant collaborators who step in with clear, timely advice when we need it most. Today’s guest post does exactly that. If you're heading toward the end of your NHR period (or even if you're midway through), this is essential reading.
Without further ado, here’s Mark Moberg from Green Ocean Global Advisors with a smart, practical breakdown of what to expect and how to prepare.
Editor’s note: Minor edits have been made for formatting and style only.
🎯 Ignoring It Won’t Make It Go Away
Anyone who has enjoyed NHR (Non-Habitual Residency) status in Portugal knows that all good things must come to an end. NHR provides tax benefits for a period of ten years, but once this period ends, individuals must prepare for changes in their tax obligations.
Many of us have been enjoying life in Portugal while still paying taxes as if we were back “home.” But in the background, ever since you received your NHR status, the clock has been ticking, and the question in the back of your mind should be:
“What will I do when the time is up?”
📉 Life After NHR: The Tax Wake-Up Call
First, let’s define the biggest problem for life after NHR. That is taxes. The tax on income and investments can be a rude awakening. How rude? For example, let’s compare the tax rates of the USA to PT:
U.S. vs Portugal: A Capital Gains Comparison
In addition, long-term capital gains are taxed at much different rates.
U.S. Long-Term Capital Gains Rates (2025):
0% if taxable income that is below $89,250 (married couples filing jointly).
15% if taxable income is between $89,251 - $553,850 (married couples filing jointly).
20%: if taxable income is above $553,850 (married couples filing jointly).
Portugal’s Approach:
In Portugal, capital gains are taxed at either progressive rates or a flat 28% rate, depending on the holding period. In fact, according to newly passed legislation, it's possible to exclude from taxation a portion of these gains from long-term transactions, also depending on the holding period.
For most people, they will look at their tax situation and mumble, “I want more of the tax situation from the USA and not Portugal.”
📊 Case Study: George & June’s Tax Reality Check
For Americans, the situation could look something like this: George and June Partridge are 72 and 75 and are in their 5th year of NHR. Things are looking good so far. Here’s a side-by-side simulation for a married couple (ages 72 and 75) in 2025, with the following income sources:
$50,000 in Social Security benefits
$1.5M IRA, starting Required Minimum Distributions (RMDs)
$250,000 in stocks (assume 2% dividend yield and 5% long-term capital gains)
$250,000 invested in bonds earning 5% interest
U.S. Tax Scenario (2025)
Income Breakdown
SOURCE | AMOUNT | TAX TREATMENT |
|---|---|---|
Social Security | $50,000 | ~85% taxable depending on other income |
IRA RMD (age-based est.) | ~$58,000 | Fully taxable as ordinary income |
Dividends (2%) | $5,000 | Qualified, taxed at capital gains rates |
Capital Gains (5%) | $12,500 | Long-term, taxed at 0–15% |
Bond Interest (5%) | $12,500 | Ordinary income |
Total Income | ~$138,00 |
Estimated U.S. Tax
Standard deduction: $30,000 + $3,200 (age 65+)
Taxable income: ~$104,800
Federal tax: ~$13,000
Effective tax rate: ~9.4%
Net income: ~$125,000
Portugal Tax Scenario (Post-NHR)
Income Breakdown (converted to €)
SOURCE | AMOUNT | TAX TREATMENT |
|---|---|---|
Social Security | ~€46,000 | Taxed as pension income at progressive rates |
IRA RMD | ~€53,000 | Taxed as pension income at progressive rates |
Dividends | ~€4,600 | Flat 28% or progressive |
Capital Gains | ~€11,500 | Flat 28% or progressive, with the possibility of exclusion of a portion of the taxable income |
CD Interest | ~€11,500 | Flat 28% or progressive |
Total Income | ~€126,600 |
Estimated Portugal Tax
Pensions: €99,000 – €4,350.24 (standard deduction) = ~€35,724.24
Interest + dividends + Capital gains tax: €27,600 x 28% = ~€7,728.00
Total tax: ~€43,452.24
Effective tax rate: ~34%
Net income: ~€83,147.76
METRIC | U.S. | PORTUGAL |
|---|---|---|
Gross Income | $138,000 | ~€126,600 |
Total Tax | ~$13,000 | ~€43,452.24 |
Effective Tax Rate | ~9.4% | ~34% |
Net Income | ~$125,000 | ~€83,147.76 |
As you can see, when NHR expires, the Partridges won’t be singing love songs; they will be paying much more in taxes.
The big culprit in this retirement plan is the IRA. It is a ticking time bomb. As it grows, the tax liability just gets greater and greater. To make matters worse, the US tax code requires you to take out a percentage based on age annually.
So… What Can You Do?
Good news: there are strategies to lower your future tax burden.
Bad news: if you wait until the final year of NHR, your options shrink drastically.
Your best move? Be proactive. Start now.
First thing to understand is that there are things you can do to lower your future tax liability. But if you wait until the last year of NHR, your choices are very limited. The best thing you can do is be proactive and immediately start thinking about structuring a plan.
✅ Potential Strategies to Consider:
To mitigate these tax impacts, consider the following strategies:
Strategic Pension Withdrawals
Spread withdrawals from pensions over several years to avoid the top tax brackets.
Convert IRA to Roth IRA
Convert US IRAs into Roth IRAs since Roth withdrawals are typically tax-free in the U.S. and can be only partially taxed in Portugal, as only the growth (not the basis) is considered taxable income. On the Portuguese side, the way the conversions are structured can make a huge difference on income classification, and, therefore, taxation.
Use Insurance Wrappers (Unit-Linked Life Policies)
Gains within the wrapper are tax-deferred and withdrawals are only partially taxed after the maturing period. The tax rate drops over time from 28% to 11.2% after 8 years.
Smart Capital Gains Structuring
Structure the Capital Gains wisely to consider both jurisdictions. With a properly structured portfolio of individual stocks, you can create tax-loss harvesting by
selling stocks that are down and matching with capital gains. In Portugal, losses can be carried forward for 5 years, but it is essential to claim it properly in the relevant Portuguese tax return.
Explore Corporate or Fund Ownership for Property
Potentially owning property through a corporation or fund may offer better exit strategies and lower taxation. Unless you plan on only owning one property and making that your permanent home in Portugal, owning on a personal level likely will not be tax-efficient.
🔍 There’s No One-Size-Fits-All
Each person is going to have their own pain points that need to be addressed. Only by looking at your choices well before your NHR ends will you be able to make decisions that leverage your most valuable commodity, time.
👋 Need Help?
If you’d like to develop a post-NHR financial plan incorporating some of the ideas discussed here —reach out to Mark Moberg, Certified Financial PlannerTM at [email protected] - Green Ocean Global Advisors, LLC.
This article was written in partnership with the tax team of FRESH Portugal.
Disclaimer
The information provided in this article is for general informational and educational purposes only and should not be construed as personalized financial, investment, tax, or legal advice. While the author is an employee of Green Ocean Global Advisors, LLC, the views expressed here are solely those of the author and do not necessarily reflect the views of the firm or its affiliates. This content may reference financial planning strategies applicable to U.S. persons living abroad or navigating cross-border financial situations. However, financial planning and tax laws vary by jurisdiction and are subject to change. You should consult with a qualified financial advisor or tax professional who understands the laws in both your home country and country of residence before making any decisions. Nothing in this article constitutes a recommendation, solicitation, or offer to buy or sell any securities or financial instruments. Past performance is not indicative of future results. Green Ocean Global Advisors, LLC is a registered investment advisor located in California, USA. Registration does not imply a certain level of skill or training. For more information, please visit our website or contact us directly.
💱
With thanks to our collaborators: Mark Moberg, Certified Financial Planner™ at Green Ocean Global Advisors, LLC, and the tax team at FRESH Portugal, for their valuable insights and contributions to this article.
📢 Heads Up!
A few weeks ago, we flagged the OBBBA (“One Big Beautiful Bill Act”) and its potential impact on Americans living in Portugal. Now, the team at Green Ocean Global Advisors is hosting a timely and insightful webinar to break it all down.
John McNertney, CFP®, Managing Partner at Green Ocean Global Advisors, will walk you through the key provisions of the new legislation and what they could mean for your finances as an American abroad.
Don’t miss it — register below!
🗣 Lost in Lingo
🔈 This Week's Lesson: A Lista de Compras (The Shopping List)
Before you can master Portuguese, you’ll need to master the art of asking for toilet paper, coffee, and aquele queijo que parecia bom mas agora não sabes o nome. This week, we’re diving into the shopping list essentials, because looking confused in the aisle is a rite of passage, but asking for things like a pro? That’s the dream. Watch the quick video and get one step closer to becoming fluent… in groceries.
…And That’s All Folks
Thanks for reading! 💌
Hustle on!
Angelique🧞♀️
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