Hi Nancy. Great post that I hope will make people realize that to move abroad requires a lot more than a knee-jerk reaction. We've all met people who think they can buy a plane ticket, take their US dollars, and expect to find things are "just like at home" when they land. Not so much.
Thanks for including my newsletter on How to get Rid of Stuff in your post. You present some great alternative choices for potential expats. I know a lot of people are currently in panic mode. The best decisions are never made this way. Hoping your readers (and mine) take the time to really weigh all the options. Living abroad is not for everyone. -CW
Speaking to American friends recently, I understand people are scrambling for viable options to get away. I cannot imagine feeling that way, and also can see how anxiety inducing it could be. That said, I really hope people don't opt for a cruise. I recently learned that on average, a large cruise ship can use up to 250 tons of fuel per day, which is around 80,000 gallons, it would be really selfish and entitled to chose that option.
This is such a helpful post. We are retired, and trying to figure out if it's safer to just move from our charming blue bubble in a horrible red state, to a solid blue state which is climate resilient. Or should we flee the US. The more information we have to add to our spread sheet and help make this decision, the better.
NHR doesn't mean you one doesnt have tax obligations to PT, particularly US social security (with a credit give'n for taxes paid to US) or IRA withdrawals (RMDs, ouch!) with potentially a resourced FTC against your US taxes. I know you do this through an accountant.
Prior to 2020, NHR was essentially a tax-free scheme. As we arrived in 2020, you are correct that our SS (which we did not accept until this year when we turned 70) will be taxed. To date, our accountant considers IRA withdrawals as dividends that are not taxed. Our preliminary analysis is that with the offset for US taxes, we will pay very little if any additional tax this year.
Thank you Nancy for sharing your thoughts. As you and Denise know, Andrea and I have begun our version of the Schengen Shuffle. Sold our home in Portland, Oregon last month, sold everything, or gave it away. We will spend 90 days in Portugal at a time because of our home in VRSA, then spend the other 90 days traveling the world (outside the Schengen zone). There are several Schengen calculators online that help you keep track of your time in and out of the Schengen zone.
Andrea and I love cruising, and will use transatlantic crossings from time to time to travel to and from Europe. Since Covid, I think the cruise industry has done a better job keeping public areas cleaner (sanitized I should say). We are very respectful and always wash or at the very least use hand sanitizer before and after entering a food venue onboard.
Finally, thank you for the suggestion to subscribe to Brent and Michael are Going Places. Looking forward to hearing their thoughts, and suggestions.
I'm sure you've thought of this, but the Schengen Shuffle may not help you with having to pay taxes in PT on your world wide income, because you have a home in VRSA.
The Shuffle assumes you do NOT own a home in a European country. This post was intended for people that want to travel and move out of the US without deciding (yet) where to settle in Europe
Yes, sorry, I was responding to Thomas, not you, because of the "last month" and "home in VRSA". Any Day + Home in PT + no NHR = Potential taxability in PT on world wide income
Hi Nancy. Great post that I hope will make people realize that to move abroad requires a lot more than a knee-jerk reaction. We've all met people who think they can buy a plane ticket, take their US dollars, and expect to find things are "just like at home" when they land. Not so much.
Thanks for including my newsletter on How to get Rid of Stuff in your post. You present some great alternative choices for potential expats. I know a lot of people are currently in panic mode. The best decisions are never made this way. Hoping your readers (and mine) take the time to really weigh all the options. Living abroad is not for everyone. -CW
Great write up, as usual. Always helpful thank you
Speaking to American friends recently, I understand people are scrambling for viable options to get away. I cannot imagine feeling that way, and also can see how anxiety inducing it could be. That said, I really hope people don't opt for a cruise. I recently learned that on average, a large cruise ship can use up to 250 tons of fuel per day, which is around 80,000 gallons, it would be really selfish and entitled to chose that option.
Selfishly I wouldn't choose a cruise because it is a petri-dish for infection.
Right
I think it was Oscar Wilde who likened traveling on ships as "imprisonment, with the possibility of drowning". So, a big no thanks.
This is such a helpful post. We are retired, and trying to figure out if it's safer to just move from our charming blue bubble in a horrible red state, to a solid blue state which is climate resilient. Or should we flee the US. The more information we have to add to our spread sheet and help make this decision, the better.
If you only knew how grateful I am to you right now.
Reda, you are very kind.
NHR doesn't mean you one doesnt have tax obligations to PT, particularly US social security (with a credit give'n for taxes paid to US) or IRA withdrawals (RMDs, ouch!) with potentially a resourced FTC against your US taxes. I know you do this through an accountant.
Prior to 2020, NHR was essentially a tax-free scheme. As we arrived in 2020, you are correct that our SS (which we did not accept until this year when we turned 70) will be taxed. To date, our accountant considers IRA withdrawals as dividends that are not taxed. Our preliminary analysis is that with the offset for US taxes, we will pay very little if any additional tax this year.
Thank you Nancy for sharing your thoughts. As you and Denise know, Andrea and I have begun our version of the Schengen Shuffle. Sold our home in Portland, Oregon last month, sold everything, or gave it away. We will spend 90 days in Portugal at a time because of our home in VRSA, then spend the other 90 days traveling the world (outside the Schengen zone). There are several Schengen calculators online that help you keep track of your time in and out of the Schengen zone.
Andrea and I love cruising, and will use transatlantic crossings from time to time to travel to and from Europe. Since Covid, I think the cruise industry has done a better job keeping public areas cleaner (sanitized I should say). We are very respectful and always wash or at the very least use hand sanitizer before and after entering a food venue onboard.
Finally, thank you for the suggestion to subscribe to Brent and Michael are Going Places. Looking forward to hearing their thoughts, and suggestions.
I'm sure you've thought of this, but the Schengen Shuffle may not help you with having to pay taxes in PT on your world wide income, because you have a home in VRSA.
The Shuffle assumes you do NOT own a home in a European country. This post was intended for people that want to travel and move out of the US without deciding (yet) where to settle in Europe
Yes, sorry, I was responding to Thomas, not you, because of the "last month" and "home in VRSA". Any Day + Home in PT + no NHR = Potential taxability in PT on world wide income