Become Portuguese tax resident and Portugal taxes your worldwide income — pensions included. The famous 10% pension deal is gone. Here's what actually applies in 2026, and what Americans and Canadians keep owing back home.
Figures verified 2 July 2026Portugal taxes residents on worldwide income at progressive rates. These are the 2026 brackets (mainland), from the 2026 State Budget:
| Taxable income | Rate |
|---|---|
| Up to €8,342 | 12.5% |
| €8,342 – €12,587 | 15.7% |
| €12,587 – €17,838 | 21.2% |
| €17,838 – €23,089 | 24.1% |
| €23,089 – €29,397 | 31.1% |
| €29,397 – €43,090 | 34.9% |
| €43,090 – €46,566 | 43.1% |
| €46,566 – €86,634 | 44.6% |
| Above €86,634 | 48% |
Plus the solidarity surcharge: 2.5% on taxable income between €80,000 and €250,000, 5% above that. Non-residents pay a 25% flat rate on Portuguese-source income.
IFICI basics: you qualify if you weren't Portuguese tax resident in the previous 5 years, never had NHR, and work in an eligible category (research, higher education, certified startups, listed highly-qualified professions in qualifying companies). Registration deadline: 15 January of the year after you become resident.
| United States | Canada | |
|---|---|---|
| Keep filing? | Yes — the US taxes citizens on worldwide income wherever they live. FEIE ($132,900 for 2026) or foreign tax credits offset most of it. | Generally no, once you cease Canadian tax residency — but watch departure tax on deemed disposition of assets. |
| Treaty | US–Portugal treaty in force since 1996. Private pensions: taxed where you live. US Social Security treatment has traps — get advice. | Canada–Portugal treaty since 1999. Canada may withhold up to 15% on periodic pension payments above CAD 12,000/year (CPP, OAS, RRIF). |
| Accounts reporting | FBAR if foreign accounts exceed $10,000 aggregate; FATCA Form 8938 at $200k (single, living abroad). | Standard CRA rules until departure; form T1161/T1243 territory on exit. |
| Social security | Totalization agreement since 1989 — no double contributions. | Agreement since 1981 — CPP/OAS coordinate and export. |
Social Security, IRAs, 401(k)s, and Roths — what's settled, what's grey, and the questions for your advisor.
The eligible professions list, the company-side conditions, and the 15 January deadline.
The power-of-attorney route, costs, and how to skip the fiscal-representative fee legally.