Taxes
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On 4 July a comment by Ted Baumann in response to @MEGANDOUG about taxes was "you will, however, pay the difference between u.s. and Portuguese tax rates." Does he mean if I pay 25% rate in U.S. and Portuguese retirement taxes are 40% I pay an additional 15% on my retirement income?
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Hi @JSWIGART2 thanks for your question!
We’ve checked in with Ted Baumann, our Global Diversification Expert, to get an answer to your question. This was his response,
Taxes are levied at different rates at different income levels. When we say “a 25% rate” or a “40% rate” we are referring to the top marginal tax rate we pay. How much you end up paying to a foreign government once you become tax resident depends on the effect of all that country's tax rates on your income. You may not pay a total of 15% more, but if the tax rate is higher, you will definitely pay more.
If you'd like to get more advice on diversification from Ted try his consulting service here: https://pro.globalcitizenliving.com/m/2355094