3 ms·
Right. But as a nomad you cannot just give up your own health insurance and you cannot just stop paying into a foreign retirement fund yourself. Portugal won‘t
by quonn 3y ago
Right. But as a nomad you cannot just give up your own health insurance and you cannot just stop paying into a foreign retirement fund yourself.
Portugal won‘t allow you to deduce that, of course, and it‘s another 1500-2000 per month to subtract in case of private insurance for example.
Leaving around < 2000 net. And as I said that‘s without the mandatory social security problem on foreign income.
- somewhereoutth 3y agoAssuming you/your employer are paying social security contributions, then you can give up your own health insurance. People in Portugal tend to have private healthcare plans for everyday stuff, but they are insanely cheap. For urgent/serious things, the public system is effective enough. However you will need to contribute for at least 15 years before you qualify for a pension, and as you say there are no deductions for private pension plans, so you lose out there. I suspect you are being 'taken to the cleaners', but not necessarily deliberately by anyone.
- quonn 3y agoI think I have explained the typical situation a few times in this thread but I will try again. 1. Nomads are not employed by Portuguese companies. 2. They could give up their home health insurance, but then they cannot remain residents of their home countries where this is mandatory. And since nomads are nomadic they cannot leave Portugal. The insurance would usually only work there. 3. And the retirement fund is the far bigger chunk. In short, the laws of different countries do not align so the tax deductable things do not align either. This is exactly the reason why the Portuguese government has introduced these measures in the first place.
- somewhereoutth 3y ago1. Plenty of Portuguese people and foreigners resident in Portugal work for foreign companies without huge tax burdens, plenty more work freelance for foreign clients without huge tax burdens. 2. I assume you are talking about Americans? You can't expect tax breaks just because your home country doesn't offer universal healthcare! 3. Indeed private pensions are not tax deductible here, but that doesn't mean taxes are higher, it means they are not less! The 88% you said sounds more like your actual living expenses, not the tax you pay to the Portuguese government. So don't call it tax, because it is not. NHR has unfortunately been abused by people who were in fact largely resident here, and the Portuguese are quite right to close the loophole. You want to benefit from Portuguese society? Then you contribute.
- seydor 3y agoisn't the whole point of moving to europe to get away from expensive insurance?
- quonn 3y agoI am European, self-employed. But the health insurance is not free there either. For example in Germany it is around 700 per month privately. Some pay 900. It is independent of the salary if private and dependent on it if public. And you have to either pay into a retirement fund or should do it privately and budgeting around 2000 in total is realistic. In my home country this can be partially deduced. In Portugal not, so it‘s subtracted from the net salary.
- deleted 3y ago[deleted]