Neither country would be considered "low tax". But, I see people mix up immigration and tax considerations all the time, and they are very separate things, so covering tax concerns in a video about immigration issues would risk confusing things even further. And it isn't just income taxes, you need to consider social security tax, as well as other taxes such as property tax if you bought a home. If a person is in his/her prime earning years, the combination of higher taxes and lower salaries could prove very expensive. If you are on the backside of your prime earning years, though, it could be a really great option.
Research taxes before doing any of this. If you have more than U.S. social security as your income (ie investments, pensions etc), all of it will be taxed as income. Plus, the wealth tax situation is prohibitively costly and applies to unrealized wealth such as the unrealized gains of stocks. Essentially, all your nest egg for retirement will be taxed to the point that there are no more gains for yourself; it will all go to the government. Some autonomous cities in Spain have been fighting this, but the courts have recently declared this form of taxation as constitutional even though it is truly a confiscation of your family wealth. Be very careful.
One of my biggest complaints about these videos is the sloppy use of the terms "visa" and "residency". They are not the same thing, and experts should take more care in using the terms correctly. Take the D7 visa in Portugal as an example. This visa is only valid for 120 days, and then expires. That's it. There's no "renewing your visa". What happens is that during those 120 days you are meant to get an appointment with the Portuguese immigration authorities (AIMA) to obtain a short-term residency permit (the Título de Residência). The first permit is valid for 2 years, then renewed for 3 more years, and in 5-year increments after that. (side note: AIMA is currently swamped with a massive backlog, so most new immigrants won't get their residency permit card for a few months). So, you technically can NOT work on a D7 visa, but you are free to work in any capacity on your residency permit card. In reality, a great many people do remote work while waiting on their residency permit card, since they are still tax residents in their previous country. Tax residency kicks in about the same time most people get their permit cards, so things tend to work themselves out. But, this can be sort of complex, and being sloppy with terminology doesn't help. Visa ≠ residency
I wish you would include information about expedited paths to citizenship in the countries you review. If you or going to retire in a country, citizenship might have advantages.
Many countries don’t recognize dual citizenship…but that doesn’t prevent people from holding a passport from more than one country. I know many naturalized US citizens who still have passports from their birth country…; and, in-laws who are naturalized Spanish citizens who still have their birth country (in S. America).
This video misses a crucial piece of the Porto D7, which might be decisive for some people. In addition to demonstrating the ~850 Euro/mo of passive income (or about 1300 Euro/mo for a couple with the second as a dependent spouse), the applicant must ALSO have a full year's worth of this minimum passive income on deposit in a local Portuguese bank account. That would mean ~10,200 euro for a single applicant, or ~15,300 for an applicant + dependent spouse. Different sources have given me different answers on the Q of whether this balance can even be spent down, or must be maintained continuously. But in any case, this for a one-year residence visa. For a TWO-year visa or renewal of the D7, you'd need to show TWICE that same bank account balance. So while Spain's non-lucrative visa has a substantially higher monthly minimum, there is absolutely no corresponding need for a local bank deposit. Not every retiree or retiring couple will necessarily have that lump sum available, over and above the substantial costs of moving, renting housing, etc.
How can you compare these two countries without considering income tax ......This is a critical element, especially if someone has different sources of revenues that will put him or her above the minimum threshold brackets of these countries......
Why is it that hardly any of these kinds of videos discuss (or even mention) the potential tax implications? Not only do tax rates vary across the EU but the requirement to spend a minimum period of time in one of these countries almost always carries tax implications.
Do not, under any circumstances, contact an immigration lawyer at the beginning of this process. You are a victim waiting to happen. So many people make this expensive mistake. Start with educating yourself on the visa you are interested. Spend at least a month reading up on this, taking meticulous notes and finding online communities. This takes time, but is free. About 60% of what you will find online is outdated, poorly explained, and often just plain wrong. But, 40% of the information is correct. And you will need at least a month to start to develop the knowledge needed to tell the BS from the helpful information. If you hired an immigration lawyer, you put your trust in a single person, and you have zero knowledge to know if that person is competent or not. By the time you start to figure it out, you'll be out thousands, wasted a lot of time, and might even have damaged your chance to immigrate. A great many people, maybe even a slight majority, do this on their own. I know that's the case for Portugal. Hiring a lawyer as a first step is the worst thing you can do.
Correct info. Just in case, I contacted an immigration attorney. $10k upfront with no guarantee of a visa. Plus, they gave incorrect info. Pretty much every country demands an official document translator, a FBI criminal history and it needs to have an Apostille. The immigration attorney told me I did not need the FBI background, no Apostille, no document translator. Had I followed their "advice" and paid the $10+k, I would have lost my chance.
With the election results - there WILL BE a long line - don't even expect to move for years! (It doesn't matter which country you try. Any desirable one, that is.)
What about taxes? Also Spain doesn’t allow you to remain US citizen if you become a Spanish citizen. That means you lose your Social Security, which is a big deal.
@@markgold5408 Nor do you have to renounce your US citizenship if you become a Spanish citizen - at least that’s what my immigration lawyer told me (I’m from the US and am currently in the process of acquiring Spanish citizenship).
@@santorojo2 You need to find a new lawyer. This is just one example of why I strongly believe hiring immigration lawyers are almost always a massive mistake. For some reason, a lot of them are just bad at their jobs. And you seem to have one of those incompetent lawyers (or you've left out some incredibly important details). For the overwhelming majority of people, especially US citizens, you can NOT be a dual citizen in Spain. You and your lawyer are completely wrong on this one.
Most important thing she missed is that Spain will not do dual citizenship but Portugal will, which for most expats is important
Spain allows for dual nationality.
Why is important?
??
Next video please go through the tax implications for Portugal D7 visa
Wonderful brief overview, thank you!
Excellent information. Right to the point, very clear and concise.
Those from Latin American countries (including Puerto Rico) can apply for Spanish citizenship after 2 years of legal residence in Spain.
What about paying taxes in either Spain or Portugal while still obligated to pay US income taxes?
Which of these countries loses with higher tax brackets? That's the more important cost long-term.
I agree income taxes are one of the most important considerations on where to live in the
eu. I wish this would have been covered!
Neither country would be considered "low tax". But, I see people mix up immigration and tax considerations all the time, and they are very separate things, so covering tax concerns in a video about immigration issues would risk confusing things even further. And it isn't just income taxes, you need to consider social security tax, as well as other taxes such as property tax if you bought a home. If a person is in his/her prime earning years, the combination of higher taxes and lower salaries could prove very expensive. If you are on the backside of your prime earning years, though, it could be a really great option.
Research taxes before doing any of this. If you have more than U.S. social security as your income (ie investments, pensions etc), all of it will be taxed as income. Plus, the wealth tax situation is prohibitively costly and applies to unrealized wealth such as the unrealized gains of stocks. Essentially, all your nest egg for retirement will be taxed to the point that there are no more gains for yourself; it will all go to the government. Some autonomous cities in Spain have been fighting this, but the courts have recently declared this form of taxation as constitutional even though it is truly a confiscation of your family wealth. Be very careful.
One of my biggest complaints about these videos is the sloppy use of the terms "visa" and "residency". They are not the same thing, and experts should take more care in using the terms correctly. Take the D7 visa in Portugal as an example. This visa is only valid for 120 days, and then expires. That's it. There's no "renewing your visa". What happens is that during those 120 days you are meant to get an appointment with the Portuguese immigration authorities (AIMA) to obtain a short-term residency permit (the Título de Residência). The first permit is valid for 2 years, then renewed for 3 more years, and in 5-year increments after that. (side note: AIMA is currently swamped with a massive backlog, so most new immigrants won't get their residency permit card for a few months).
So, you technically can NOT work on a D7 visa, but you are free to work in any capacity on your residency permit card. In reality, a great many people do remote work while waiting on their residency permit card, since they are still tax residents in their previous country. Tax residency kicks in about the same time most people get their permit cards, so things tend to work themselves out.
But, this can be sort of complex, and being sloppy with terminology doesn't help. Visa ≠ residency
If I had a D7 visa in Portugal and had a UK pension paying €45,000, how much tax would I pay?
I wish you would include information about expedited paths to citizenship in the countries you review.
If you or going to retire in a country, citizenship might have advantages.
Many countries don’t recognize dual citizenship…but that doesn’t prevent people from holding a passport from more than one country. I know many naturalized US citizens who still have passports from their birth country…; and, in-laws who are naturalized Spanish citizens who still have their birth country (in S. America).
Can you use savings and income from savings to get either visa? Or does it have to be Social Security and pensions and annuities only?
Is there an age requirement for either of these visas?
I thought a Spanish judicial ruling meant that the NLV did not carry any particular time in country requirement. Not true?
Can you do Italy vs France?
Can a foreigner on d7 visa purchase residential property in Portugal?
Yes
What about fluency as in English, some Spanish and little Portuguese; would matter if you only know enough to get by?
Im assuming one will have to pay Portuguese/Spanish taxes on all the dividends received which have been declared while processing the visa.
This video misses a crucial piece of the Porto D7, which might be decisive for some people. In addition to demonstrating the ~850 Euro/mo of passive income (or about 1300 Euro/mo for a couple with the second as a dependent spouse), the applicant must ALSO have a full year's worth of this minimum passive income on deposit in a local Portuguese bank account. That would mean ~10,200 euro for a single applicant, or ~15,300 for an applicant + dependent spouse. Different sources have given me different answers on the Q of whether this balance can even be spent down, or must be maintained continuously. But in any case, this for a one-year residence visa. For a TWO-year visa or renewal of the D7, you'd need to show TWICE that same bank account balance. So while Spain's non-lucrative visa has a substantially higher monthly minimum, there is absolutely no corresponding need for a local bank deposit. Not every retiree or retiring couple will necessarily have that lump sum available, over and above the substantial costs of moving, renting housing, etc.
Which is the best country between Portugal and Spain to live whit lower taxes
Are those income requirements your pre-tax income or after taxes?
How about taxation? As it wasn't mentioned I guess it's a tie at 30-40% on dividends, capital gains, rental income, interest, pensions,... ?
Hi....how many months of passive income needs to be shown for portugal d7 and when can i apply?
How can you compare these two countries without considering income tax ......This is a critical element, especially if someone has different sources of revenues that will put him or her above the minimum threshold brackets of these countries......
Why is it that hardly any of these kinds of videos discuss (or even mention) the potential tax implications? Not only do tax rates vary across the EU but the requirement to spend a minimum period of time in one of these countries almost always carries tax implications.
PORTUGAL AND SPAIN TAXES A LOOTTT!
Should my first step in getting the D7 Visa contacting an immigration lawyer? We need some help.
Do not, under any circumstances, contact an immigration lawyer at the beginning of this process. You are a victim waiting to happen. So many people make this expensive mistake. Start with educating yourself on the visa you are interested. Spend at least a month reading up on this, taking meticulous notes and finding online communities. This takes time, but is free. About 60% of what you will find online is outdated, poorly explained, and often just plain wrong. But, 40% of the information is correct. And you will need at least a month to start to develop the knowledge needed to tell the BS from the helpful information. If you hired an immigration lawyer, you put your trust in a single person, and you have zero knowledge to know if that person is competent or not. By the time you start to figure it out, you'll be out thousands, wasted a lot of time, and might even have damaged your chance to immigrate.
A great many people, maybe even a slight majority, do this on their own. I know that's the case for Portugal. Hiring a lawyer as a first step is the worst thing you can do.
Correct info. Just in case, I contacted an immigration attorney. $10k upfront with no guarantee of a visa. Plus, they gave incorrect info. Pretty much every country demands an official document translator, a FBI criminal history and it needs to have an Apostille. The immigration attorney told me I did not need the FBI background, no Apostille, no document translator. Had I followed their "advice" and paid the $10+k, I would have lost my chance.
With the election results - there WILL BE a long line - don't even expect to move for years! (It doesn't matter which country you try. Any desirable one, that is.)
What about taxes? Also Spain doesn’t allow you to remain US citizen if you become a Spanish citizen. That means you lose your Social Security, which is a big deal.
that’s not true. you don’t have to remain a citizen to continue getting your SS. I checked into it with a tax attorney
@@rickchandler2570 wow. Thanks. I just assumed that if you denounced your citizenship, you would lose the benefits associated with it.
@@markgold5408 Nor do you have to renounce your US citizenship if you become a Spanish citizen - at least that’s what my immigration lawyer told me (I’m from the US and am currently in the process of acquiring Spanish citizenship).
@@santorojo2 You need to find a new lawyer. This is just one example of why I strongly believe hiring immigration lawyers are almost always a massive mistake. For some reason, a lot of them are just bad at their jobs. And you seem to have one of those incompetent lawyers (or you've left out some incredibly important details). For the overwhelming majority of people, especially US citizens, you can NOT be a dual citizen in Spain. You and your lawyer are completely wrong on this one.
I believe people who are on SS can withdraw it. But you can't live in the US anymore after. My mom told me that so I don't know if that is true.