For US citizens and green card holders in Portugal

US Taxes for Americans Living in Portugal

An American in Portugal deals with two tax systems. This page sets out the US side: the yearly return, accounts held in Portugal, double tax relief, social security, and the Streamlined route for missed years.

US returnFBARForm 8938Treaty: yesTotalization: yes

Request a Quote What to File

Quick answer

Do US citizens living in Portugal have to file US taxes?

Yes. The US taxes citizens and green card holders on worldwide income wherever they live. Living in Portugal gives an automatic extension to June 15, accounts there above US$10,000 in total need an FBAR, and the foreign tax credit or the foreign earned income exclusion (US$132,900 for 2026) usually prevents double tax. The US has an income tax treaty with Portugal, and a social security agreement has been in force since August 1, 1989.

Prepared by Illuminous Accounting · Sources checked November 11, 2026

At a glance

Yearly US return: Yes, on worldwide income; due June 15 automatically when living abroad
US tax treaty with Portugal: Yes, per the IRS list (saving clause applies to US citizens)
Social security agreement: Yes, in force since August 1, 1989
Accounts in Portugal: FBAR above US$10,000 in total; Form 8938 above higher limits
Behind on filing: Streamlined: 3 years of returns, 6 years of FBARs

The yearly US return for Americans in Portugal

Living in Portugal changes where you pay most of your tax, not whether you file with the IRS. US citizens and green card holders report worldwide income every year (IRS Pub 54).

Date	What happens
April 15	Normal due date; any US tax owed is due now, and interest runs from here
June 15	Automatic extended date for a US citizen or resident living and working outside the US on April 15
October 15	Further extension if requested in time

Amounts earned in euros are reported in US dollars.

Avoiding double tax between the US and Portugal

Two US tools stop the same income being taxed twice.

Foreign earned income exclusion: up to US$130,000 for 2025 and US$132,900 for 2026 of earned income, for people who qualify by residence or days abroad (IRS).
Foreign tax credit: a credit against US tax for income tax paid in Portugal.

The US has an income tax treaty with Portugal (IRS treaty list), but US treaties contain a saving clause: they generally do not reduce US tax for US citizens, with specific exceptions written into each treaty (IRS Pub 54). So the treaty helps at the edges, for example with pensions or the order of tax credits, while the main relief comes from the exclusion or the credit.

Which tool works better depends on your income and on how much tax Portugal charges you; we compare both. See FEIE vs foreign tax credit.

Reporting Portuguese bank and investment accounts

Two separate reports cover money held in Portugal, and many Americans there need both.

Report	Who files	When
FBAR (FinCEN Form 114)	Foreign accounts above US$10,000 in total at any time in the year	April 15, automatic extension to October 15 (IRS)
Form 8938	Living abroad: above US$200,000 at year end or US$300,000 at any time if single; US$400,000 / US$600,000 if married filing jointly	With the tax return; US$10,000 penalty if not filed (IRS)

Pension and savings products in Portugal can be reportable too, so we list every account before deciding what goes where.

Catching up on US filings

Catching up is usually possible without penalties. The Streamlined Foreign Offshore Procedures ask for 3 years of returns and 6 years of FBARs, with any tax and interest paid, and for eligible people living outside the US the penalties for late returns, information returns and FBARs do not apply (IRS). Eligibility turns on non-willful conduct and on meeting the non-residency test while in Portugal. See Streamlined filing.

Working with your adviser in Portugal

Many Americans who moved to Portugal in recent years are remote workers, freelancers or retirees living on US income.

We do not advise on the tax law of Portugal. A local adviser handles your return there; we prepare the US return and filings and use the tax you paid in Portugal for the credit. For the wider picture, see US tax for Americans in Europe.

How we help

Gurleen Kaur, CPA licensed in British Columbia and Washington State, prepares and signs US returns for Americans living in Portugal: the yearly return with the exclusion or credit, FBAR and Form 8938, and Streamlined catch-up. Every engagement starts with a fixed written quote after we review the file. See the yearly filing package.

Treaty and law references: the US and Portugal

Treaty and social security

The IRS lists the 1994 income tax treaty. General effective date (IRS Table 3): treaty Jan. 1, 1996; protocol Jan. 1, 1996 (IRS treaty documents for Portugal; treaty text; IRS Table 3).
Saving clause: in the Protocol to the treaty, which lets the United States tax its citizens and residents as if the treaty had not come into effect, apart from listed exceptions.
Article 25 (Relief from Double Taxation), on relief from double taxation.
Article 20 (Pensions, Annuities, Alimony, and Child Support), on pensions and social security.
Article 16 (Dependent Personal Services), on employment income.
Social security: the US agreement with Portugal entered into force on August 1, 1989 (SSA).

US law

Foreign earned income exclusion: Code section 911 (IRS Form 2555 instructions).
Foreign tax credit: Code section 901 (IRS Pub 54).
Form 8938: Code section 6038D and Treas. Reg. section 1.6038D (IRS Form 8938 instructions).
FBAR: 31 USC 5314 and 31 CFR 1010.350 (IRS Internal Revenue Manual 4.26.16).
Green card holders and residency: Code section 7701(b) (IRS Pub 519).

The tax rules of Portugal also apply to you there; a local adviser covers that side.

Common questions

Do I have to file US taxes if I live in Portugal?

Yes. US citizens and green card holders file a US return on worldwide income wherever they live. Living in Portugal on April 15 gives an automatic extension to June 15, and tax paid in Portugal or the foreign earned income exclusion often reduces the US tax to little or nothing.

Does the US-Portugal tax treaty stop double taxation?

Partly. The treaty exists, but its saving clause lets the US tax its own citizens as if there were no treaty, with listed exceptions. The main relief is the foreign tax credit or the foreign earned income exclusion.

Do I pay social security in both the US and Portugal?

Generally not. The US-Portugal social security agreement, in force since August 1, 1989, assigns your work to one system.

What if I never filed US taxes while living in Portugal?

If it was not willful, the Streamlined Foreign Offshore Procedures let you file 3 years of returns and 6 years of FBARs, and eligible people living abroad do not pay the usual failure-to-file, information return or FBAR penalties.

Sources

Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.

Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 11, 2026. This page is general information, not tax or legal advice for your situation.

Living in Portugal? Request a quote

Tell us your situation in a few lines. We confirm whether we can help, what records matter and the next step. Substantive advice begins under a paid diagnostic or signed engagement.

Prepared and signed by a licensed US CPA who can represent you before the IRS. Verify Gurleen Kaur's Washington licence (#41150) on CPAverify

Call +1-778-325-0564 [email protected]

Name

Phone optional

Service needed

Briefly describe what you need

How did you find us? optional

By submitting, you agree that Illuminous Accounting may use this information to respond to your inquiry. Please do not include account numbers or other sensitive documents. If we work together, documents come in through our secure client portal, never by email. Read our privacy notice.