How are my retirement accounts taxed in Portugal?

Under the terms of the tax treaty, private pension income is only taxed in the country of residence. Therefore, as long as distributions are considered pension income in Portugal, they are taxed in Portugal at a 10% rate for those with NHR or at normal income rates for those without NHR. Please note that the tax-free withdrawals of Roth IRAs and Roth 401(K)s are not recognised by Portugal and you may end up paying tax on the distributions. Also note that public pensions (e.g. 403(b) plans and social security) will be taxed in the country of origin (i.e. the USA). For more information about how to handle your pensions contact our specialists.