Last week, I attended a conference for financial creators.

One creator recently moved to Portugal with her husband. But Portugal just revoked the NHR Tax Scheme for New Residents, so her husband wasn’t able to qualify in time to get lower tax rates.

Instead, he’s going to be hitting Portugal’s 40%+ income tax bracket. 😰

This got me thinking: Is it worth moving abroad for the taxes?

Today in 10 minutes or less, you’ll learn:

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If you’re like most of my readers, you probably have multiple reasons for living abroad.

For example:

Most expats and professionals abroad I meet fit this category.

On occasion, I do meet a die-hard tax escapist, but that’s the exception.

Even if your goal is financial, you have to run the full numbers (not only taxes).

Consider the following:

Let me illustrate the impact of moving to a low-tax country using three variables:

First up is income tax:

💡 Scenario 1: New Country (15% income tax) vs Home Country (30% income tax)

Assumptions:

Calculations:

While $4,500 might not seem significant, the kicker is when you invest this amount, continue contributing annually, and compound the balance over, let’s say, 10 years.

You’d gain an extra $67,372 by the end of the 10th year! 🤯

Here’s another scenario that focuses on investment tax, instead of income tax:

💡 Scenario 2: New Country (0% capital gains tax) vs Home Country (15% capital gains tax)