💸 Tax-Efficient Investing in Portugal: Make Your Money Work Smarter

Happy Sunday, pessoas! 🌞

Grab your coffee because today’s newsletter is all about making expat life in Portugal a little smarter and a lot more connected. We’ve got a must-read piece on tax-efficient investing and the next chapter of our “Surviving Portugal” survey. Dive in, share your thoughts, and help shape the tips we feature next.

What’s on the menu today:

🍺Unmissable events — from beer fests to LEGO fun

💸 Tax-efficient investing — do you have a strategy in place?

🛒Week 2 of our “Surviving Portugal” survey

Let’s dive in, shall we?

Peneda-Gerês National Park

Portugal’s only national park, Peneda-Gerês, is a breathtaking sweep of granite peaks, glacier-carved valleys, waterfalls, and ancient forests. Spanning about 700 square kilometers along the Spanish border and part of a UNESCO biosphere reserve, it’s home to wild Garrano horses, elusive roe deer, Iberian wolves, and more than 200 protected species. Scattered across the landscape are traces of human history: Roman roads, medieval castles, prehistoric dolmens, and villages that still keep centuries-old traditions alive. Hikers flock to its Seven Lagoons Trail, hidden waterfalls, and dramatic seasonal colors, while receding summer waters reveal the ghostly remains of Vilarinho das Furnas, a village lost to a dam project. Peneda-Gerês is where Portugal’s wild beauty, living history, and culture converge in one unforgettable destination.

FOOD, WINE, BEER, COFFEE

Porto Coffee Week (Porto, Sept 29–Oct 5): A national coffee festival with tastings, workshops, competitions, and market, the Porto Coffee Week transforms the city into Portugal’s coffee capital with a vibrant celebration for enthusiasts, professionals, and curious locals. Guests can explore immersive workshops, attend talks by renowned baristas, witness latte art championships, and enjoy unlimited tastings from top specialty roasters at the iconic Coffee Market. The festival is a sensory adventure, showcasing coffee innovations, creative drinks, and cutting-edge equipment in a dynamic atmosphere that unites everyone passionate about coffee culture.

Latin America Market (26-28 September, Cascais): an annual festival held at FIARTIL, featuring around 80 stands with crafts, gastronomy, music, and dance from various Latin American countries. The event highlights the cultures and entrepreneurship of Latin American migrant communities in Portugal, making it a vibrant and multicultural celebration enjoyed by families and visitors each September.

Oktoberfest at Vila Vita Biergarten (24 Sept–5 Oct, Porches, Algarve): A Bavarian-style beer festival complete with oompah band, Erdinger beer, German food, and lively atmosphere—closed on 29–30 September.

Autumn Beer Festival (27 September, Vale do Peso, Portalegre, Alentejo): Celebrate beer and the season with local offerings in a scenic rural setting.

MEDIEVAL & CULTURAL EVENTS

Feira Medieval de Palmela (26-28 September, Palmela): a spectacular medieval fair held every September at Palmela Castle, just south of Lisbon, transforming the town’s historic center into a vibrant medieval scene. The event features knights’ tournaments, lively parades, falconry, themed markets, music, dance, and authentic medieval food, all set inside and around the castle’s ancient walls.

International Puppet Festival of Porto (24 Sept–19 Oct, magical puppet shows across theaters—great for families and culture enthusiasts.

FUN

“Invasion of the Giants” LEGO exhibition (Lisbon, 21 Jun-5 Oct): this is Europe’s largest LEGO showcase, open until September 28, 2025 at Cordoaria Nacional. Visitors can explore over 1,000 jaw-dropping models built from nearly 10 million bricks, including showstoppers like a massive Star Wars Tie Fighter, the world’s largest Twin Towers replica, and entire cityscapes covering 20 square metres. Themed zones range from architecture and cartoons to movie scenes and interactive fun parks, making it an extraordinary creative playground for kids and AFOLs (Adult Fans of LEGO) alike, where building, learning, and selfie snapping go hand in hand.

Welcome to Week 2 of The Great Portugal Expat Experience Project

Over the next few weeks we’re running short, 2-minute surveys exploring a different slice of expat life in Portugal each time.

Last week’s survey — “The products that nearly broke us” — brought in a treasure trove of answers (and yes, the survey is still open if you missed it!). Each week, we’ll tease one juicy finding from the previous survey, but the full results will be unveiled at the end of this series in our very own Expat Hustle Newcomer’s Guide, created by this awesome community. Don’t miss your chance to be part of it!

A quick overview of surveys open and coming up:

Fun fact from Week 1: one of the biggest hurdles some of you faced was simply finding decent cleaning products. Want to know the rest? You’ll have to wait for the big reveal at the end of this series.

Imagine you could mail a care package to your past self.

Those first 30 days in Portugal are a wild mix of excitement, confusion, and “why didn’t anyone tell me this?” We’re running our second quick survey (just 2 minutes!) to crowdsource the ultimate First Month Survival Kit for new arrivals.

Why bother? Because your answers help future expats dodge rookie mistakes, stock up on essentials, and discover clever substitutes… and you’ll get to see what everyone else wishes they’d packed too.

We’ll share the most surprising, funny, and brilliant response in next week’s newsletter.

Take the survey here ⤵

🙌 Thanks for taking 2 minutes to help us crowdsource the ultimate First Month Survival Kit for new arrivals. You ROCK!

Enjoying The Expat Hustle? I’d love it if you could rate this newsletter via the link below! And IF you have 5 extra minutes, a quick testimonial would seriously make my day. It helps me connect with more expats who could use the tips and support we’re all sharing here. Thank you!

There’s no shortage of ways Portuguese taxes can sneak up on you, and, unfortunately, not the fun kind. While it’s tempting to distract ourselves with another pastel de nata or glass of vinho verde, that won’t make the tax man 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 investing in Portugal (or thinking about how to make your money work harder here), this is essential reading.

Without further ado, here’s Mark Moberg from Green Ocean Global Advisors with a smart, practical breakdown of how expats can invest more tax-efficiently and keep more of what they earn.

Editor’s note: Minor edits have been made for formatting and style only.

"No truer words could explain the predicament that the average expat faces living in Portugal: It isn’t how much you make, but how much you keep."

Navigating the intricacies of Portuguese tax law—especially the 28% capital gains rate—can quickly undermine a long-term savings plan. Consequently, many turn to tax-saving and deferred tax vehicles such as IRAs, 401(k)s, and insurance wrapper investments to shelter their savings.

Yet not all funds can reside in tax-advantaged accounts. For most, maintaining a traditional brokerage account is a necessity. The challenge is that owning mutual funds and ETFs in taxable accounts, particularly for expats in Portugal, often results in significant tax inefficiencies.

The lack of granular control, coupled with the specifics of Portuguese tax regulations, creates several obstacles—the most notable being the 28% capital gains rate.

Important clarification: In Portugal, you can choose to apply either the flat 28% rate on capital gains or be taxed at progressive income tax rates instead. This choice can have a meaningful impact depending on your overall income situation.

Portuguese tax regulations—particularly the flat 28% capital gains tax—create several obstacles for investors:

Even small differences in tax rates can significantly erode your total return over time.

What exacerbates this problem is that, with ETFs and mutual funds, an investor does not have control over buy and sell decisions. Instead, you are subject to the choices made by the fund manager. If the fund realizes large gains, you could be faced with substantial taxable distributions, often with little warning.

This lack of control is particularly problematic for expats in Portugal, where high capital gains taxes amplify the impact.

Given these challenges, many expats seek alternatives. One such strategy is direct indexing.

Direct indexing allows you to own the individual stocks that make up an index (such as the S&P 500), rather than buying a bundled fund. This approach provides greater control and flexibility over your portfolio.

For example, if you own shares of Company A that have lost value and shares of Company B that have gained, you can sell Company A to offset the gains from Company B. This process, known as tax-loss harvesting, helps reduce your overall tax bill. Direct indexing enables ongoing, customized tax-loss harvesting—something mutual funds and ETFs cannot provide.

Consider the difference between buying a frozen pizza and making your own. With a frozen pizza—much like mutual funds and ETFs—you get what’s in the box, without the ability to choose or customize. Direct indexing is akin to selecting each ingredient yourself, allowing you to tailor your portfolio to your tastes and needs.

The primary advantage of direct indexing is the ability to strategically harvest tax losses. By pairing stocks with losses against those with gains, you can minimize taxable events.

This is especially beneficial for individuals holding concentrated stock positions, as it facilitates the gradual reduction of those holdings through planned sales.

Another unique benefit of direct indexing is the ability to create a bespoke portfolio based on Environmental, Social, and Governance (ESG) criteria, selecting only those companies that align with your values.

Direct indexing is not a panacea. Like all strategies, it has limitations, but it works well as a complement to traditional ETF and bond portfolios.

If you have questions about direct indexing or other aspects of financial planning as an expat in Portugal, consider scheduling a 15-minute AMA (Ask Me Anything) consultation. [email protected]

Research Studies & Data Sources:

Tax & Regulatory Information:

_{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.}

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With thanks to our collaborator, Mark Moberg, Certified Financial Planner™ at Green Ocean Global Advisors, LLC, for his valuable insights and contributions to this article.

Coming up: If you have questions about the Golden Visa in Portugal and how to navigate the new reality, you’re invited to join Green Ocean Global Advisors on September 23rd for a webinar packed with practical insights and updates. Register below:

To wrap up today’s issue, let’s talk about one of the most Portuguese words you’ll ever hear: pois. Tiny but mighty, this little word can mean everything from “exactly” to “well then,” depending on tone and context. In this week’s featured video, Mia breaks down the many ways to use pois, from confirming agreement to smoothly shifting a conversation, so you can sound more natural and avoid common mistakes. It’s a quick watch packed with practical tips, and by the end, you’ll be saying pois, claro! like a pro.

Thanks for reading! 💌

Hustle on!

Angelique🧞‍♀️

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