Tax Essentials For Expats, From The Experts

👋 Happy Saturday friends!

Today is extra special for my family as we celebrate my husband’s birthday. 🥳 Wayne, happy birthday, my love! You’ve been an endless source of writing material for this newsletter, but I’ve got plenty to work with—so maybe take it easy this year, okay? 😅 (New to The Expat Hustle? Check out the story about our hospital adventure for context.)

Here’s what’s on the menu this week:

🧑‍💼We Ask An Expert: The basics you need to know about expat taxes!

🐛Not all bugs are evil: Some are just misunderstood

🏡 Airbnb Experiences: How to turn your passion into profit and meet travelers from around the world.

Let’s dive in!

No pain no gain? Not with this natural pain relief remedy. More details down below.

HUSTLE IDEAS

$68/hour via Airbnb, without a single guest crashing on your couch!

In this video, Kairo shares his journey of making money through Airbnb Experiences by hosting walking tours in London. It’s simple: walk, talk, and cash in!

If you know your town like the back of your hand, this could be your chance to make money without even breaking a sweat (well, unless it’s summer). But why stop at basic tours? Portugal is full of quirks and hidden gems. Let’s get creative!

Here are some offbeat Airbnb Experience ideas to make your hustle stand out:

• Dog-Friendly Adventures in Nature: Offer guided hikes on Portugal’s most scenic, dog-friendly trails. Throw in a “puppy picnic” mid-hike with dog-friendly snacks and human goodies (hello, pastel de nata!). Bonus: provide Instagram-worthy photo ops of pooches enjoying Portugal’s great outdoors.

• Portuguese Market Adventure with Cooking Class: Take guests on a shopping spree at a traditional market, teaching them how to select fresh produce and fish. Then head back to your kitchen for a cooking class where they learn to whip up a traditional dish with their market haul.

• Portuguese Hand Gestures 101: A crash course in how to speak volumes without saying a word. End it with a café break and practice sessions.

• Crash Course in Portuguese Culture Through Wine and Petiscos: Blend language lessons with Portuguese wine and petiscos (small plates). Guests learn essential phrases like how to order food, haggle at markets, or even flirt, all while sipping vinho verde and sampling queijo da Serra.

Already hosting quirky experiences on Airbnb in Portugal? Hit reply and spill the beans. You could be the star of an upcoming newsletter!

QUICK TIPS 🗲

House Centipedes Are FRIENDS

House centipedes are probably the scariest thing that’s chased me in my three years in Portugal, and let me tell you, there isn’t much that hasn’t chased me (besides cows—those guys are my favorites).

These yellowish-grey housemates have up to 15 pairs of long legs and apparently live in many parts of the world, but they were definitely new to me! Despite being completely unlovable, undeniably gross, and capable of running at a breakneck speed of 1.3 feet per second, they’re actually quite handy to have in the house if you generally hate most creepy crawlies.

They love the more humid areas of your home (I keep telling you guys, buy those dehumidifiers!), eat the bugs that cause real damage to your stuff (like silverfish and cockroaches), and don’t fly—huge bonus! These insectivores live off other insects and arachnids (spiders), and they’re shy and nocturnal, so your chances of seeing them are slim.

So, if you do get cornered by one in the shower, take a deep breath—they’re not auditioning for a horror movie, they’re just doing pest control for free. Instead of reaching for the nearest slipper, you could:

• Pretend they’re part of a quirky home ecosystem, or

• Relocate them gently like the underappreciated roommates they are.

Remember, house centipedes are nature’s tiny exterminators. So the next time you see one, maybe give them a thumbs-up (from a safe distance)—they’ve probably saved you from something worse.

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ASK AN EXPERT

Tax Essentials for Expats in Portugal: An Overview of What You Can’t Afford to Miss

Welcome to the first addition of our Ask an Expert series, proudly sponsored by the tax professionals at Fresh Portugal!

In this article, Fresh Portugal’s team of experts breaks down the must-know essentials of navigating taxation in Portugal. Do you have burning questions about taxes, residency, or immigration? Now’s your chance—submit your questions over the next two weeks by replying to this email and our experts will provide answers in an upcoming edition!

Now, over to the Experts:

Navigating the complexities of Portuguese taxation can feel daunting, especially for expats.

That’s why we’re here to help!

Our blog is dedicated to providing clear and insightful information about taxation in Portugal. Backed by Fresh Portugal’s team of tax attorneys, we aim to simplify intricate tax topics, answer your pressing questions, and ensure you’re equipped to make informed financial decisions.

Here is some basic information about how your tax life in Portugal will look like:

Q: What Does It Mean to Be a Tax Resident in Portugal?

Every resident of Portugal has to disclose and report their global income. The concept of residency in Portugal can be tricky because the public offices are not fully equipped to enforce the criteria of the law, which is:

• Spend more than 183 days in the country within the tax year (January to December), or

• Establish your primary home in Portugal.

That said, you can usually be considered a registered tax resident when you apply a Portuguese address to your NIF document.

Q: Do Non-Residents Need to Pay Taxes in Portugal?

Also, liable to taxation are non-residents that have Portuguese-sourced income, e.g., rental from a Portuguese property.

Q: When Are the Key Tax Deadlines in Portugal?

Residents and non-residents with Portuguese-sourced income have to report income to assess personal tax liability during the tax season, which happens between April and June. This applies to all income earned on a personal capacity.

Every submission done after June 30th can be exposed to fines for late filing, which range from €25 to €3,750.

Now, on the corporate side, the general deadline for submitting the corporate tax statement is May 31st. However, there can be many other tax reporting obligations related to corporate activity.

Q: What Are Deductible Expenses for Tax Residents?

On a personal capacity, every Portuguese expense that you associate your taxpayer (NIF) number to and classify under deductible categories can be used as itemized deductions. These include expenses such as health, education, rental, and some other categories to account for VAT expenses.

One important note: all deductible expenses have caps defined by law.

Q: What Happened to the Non-Habitual Resident (NHR) Tax Regime?

As for tax breaks for expats, Portugal’s Non-Habitual Resident (NHR) tax regime, once a cornerstone of its strategy to attract foreign talent and investment, was recently discontinued.

While this marked the end of a successful era for many expats, there is optimism. The government plans to introduce a reformed version of the regime, TISRI. As of now, stakeholders are awaiting the announcement of new regulations, which are expected to redefine Portugal’s tax incentives for international residents while addressing previous criticisms.

Q: Are There Other Tax Incentives for Expats?

The tax legislation still has a few unexplored incentives and tax breaks unrelated to NHR or TISRI. The Fresh Portugal team is working on these with financial advisors—stay tuned for updates!

The biggest challenge for expats living in Portugal is to try and match your foreign income with the fixed income types provided by Portuguese law. Since Portugal follows a self-reporting system, this adds a lot of pressure on taxpayers to correctly interpret the law.

Q: How Are Different Income Types Taxed in Portugal?

Portugal has fixed autonomous tax rates for many income types, such as rental, capital gains, and capital income, ranging from 25% to 28%.

Non-residents are generally exposed to these rates upfront. However, there is the possibility of choosing to aggregate the income under progressive rates for some types of income when submitting the yearly tax statement.

Thus, every year, you must conduct a tax strategy exercise to determine how to legally reduce your exposure to taxation.

Contact us for more advice:

All these tips might seem a lot to process, but with the right guidance and knowledge, it becomes an opportunity to make informed financial decisions and take advantage of available benefits, whether you’re a resident, an expat, or an entrepreneur.

As the landscape of Portuguese taxation continues to evolve—especially with significant changes like the removal of the NHR—staying updated is more important than ever.

With thanks to our collaborators: Olga Neto, Head of Communication at Fresh Portugal, for her valuable insights and contributions to this article.

The tax team at Fresh Portugal is a highly skilled and experienced group, with deep expertise in both domestic and international tax law. Specializing in tax consulting, litigation, and planning, the team focuses on areas such as digital nomad taxation, crypto, and expat tax services. Additionally, the team has a strong background in private client services, tax compliance, delivering comprehensive and innovative solutions.

Email: [email protected] 

LOST IN LINGO

Food Vocabulary: From Pantry to Plate

This week’s language video comes from one of my favorite platforms, Practice Portuguese, and it’s a real treat! They break down essential food vocabulary with a fun kitchen walk-through that makes learning deliciously simple.

Here’s where it gets juicy: what if you used your newfound food lingo to host a foodie Airbnb Experience? (Feeling inspired by the ideas earlier in this newsletter?) Take guests on a tour of your favorite pastelaria (pastry shop) or guide them through a bustling Portuguese market while dropping tasty language tips. Your hustle could be as irresistible as a fresh-out-the-oven pastel de nata.

Sentence of the week ✏️

Vamos depressa, eu estou a morrer de fome!

Translation: Let’s go quickly, I’m dying of hunger!

More items from the kitchen:

Two Portuguese kitchen essentials that double as “behavioral motivators” for kids (and maybe husbands): pimenta and the trusty colher de pau.

Thanks for reading! 💌

Hustle on!

Angelique🧞‍♀️

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PS, what’s your hustle story? Write to me and you could be in the next hustle spotlight!

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