[IL Moderator]

Hi @KAKIFRY_DP Thanks for your question!

We’ve checked in with Ted Baumann, our Global Diversification Expert, to get an answer to your question. This was his response,

This is a tricky one. The answer in a nutshell is that it depends on the country.

The only countries in Europe that offer Roth-like retirement accounts are the UK, with its Lifetime ISA, and Germany’s Riester Rente and Rürup Rente. Both countries have tax treaties with the US that appear to treat Roth IRAS the same way they treat their own, as tax free. But the details are murky, and it’s essential to consult an accountant in any country where you plan to settle.

Other countries, including those that have tax treaties with the US treat their Roth IRA’s in their own specific ways. Portugal, for example, Does not specifically mention transfers from Roth accounts in its own tax laws, but a reading of its tax code that I came across recently implies that distributions of principle would be treated as withdrawal of savings or capital rather than as income. But withdrawal of gains from investments in a Roth could be considered taxable. The article suggested that if it’s possible to characterize your Roth disbursement to yourself as purely from capital, you could probably avoid paying tax.

Unfortunately this is one of those topics where there is little clarity, and again, it’s critical to engage a tax accountant in any country where you plan to settle.

[IL Moderator]

Hi @JACQUEPOST Thanks for your post!

First question we have is are you set on Portugal? Or are you open to other areas in Europe or elsewhere?

[IL Moderator]

Hi @CARRIE2020 Thanks for your question!

We’ve checked in with IL Correspondent Rachel Devlin to get an answer to your question. Here is her response,

Websites can be very unreliable as many real estate businesses do not take down old posts. The best and most reliable way to find a mid-term rental is through Airbnb. Or stay at a hotel for a few days and explore real estate agents when you arrive.

[IL Moderator]

Hi Don, Thanks for your question!

We’ve checked in with Margaret Summerfield, Real Estate Trend Alert, to get an answer to your question. Here is her response,

The cost would depend on a number of factors – where the property is located, if the seller is tax resident in Spain, etc. The typical costs are:

1, real estate agent fees (vary from 3% to 10%)
2, capital gains tax – which can be up to 24% of the gain for a non-resident, non EU/EEA seller. Deductions are allowed, and the tax can be lower if the seller is tax resident/selling a primary residence/using the proceeds to buy a primary residence
3, plusvalia (like a municipal land tax) – this is based on the rise in value of the land the property sits on from the time of purchase to the time of sale – and is on a sliding scale based on how long the seller has owned the property. If say you have held it for up to 5 years, it’s around 3.7%
4, legal costs (around 1%)
5, You also need to pay for certificates (including an energy performance certificate), cancelling a mortgage if there is one, etc.

[IL Moderator]

Hi @CARRIE2020

Totally understand. However, fear not. The seminars are separate to an ILV subscription, they’re a stand alone product.

Can I ask, are you referring to the European Seminar taking place in September?

[IL Moderator]

Hi @SDKRANZ1 Thanks for your question!

The Portugal page on our website and our Portugal Guide have plenty of information you might find helpful on everything you need to know about moving to and living in Portugal.

Here are the links:
https://internationalliving.com/countries/portugal/
https://www.ilbookstore.com/portugal-itinerary

Best of luck!

[IL Moderator]

@UNIVERSALPOWERSCEO We have also checked in with Cindy Sheahan who has lived in Porto. Here is her response,

I lived in Porto on a D7 retirement/non-lucrative visa for a year. I had an apartment in the Bonfim neighborhood, near the “other” train station, Campagna. I adored being a European – buying fresh and inexpensive produce at the corner market, strolling the cobblestone streets admiring the colorful azulejo tiles adorning the ancient buildings, enjoying delicious wines by the bottle for under 6 euros, and taking the metro, buses and train all over the city and the country!

For me, the “pros” far outweighed any cons – living in one of the safest countries in the world (coming from the USA) was a big relief, and having inexpensive and sometimes free access to medical services and ridiculously inexpensive prescriptions (for example, one medicine was 30 euros per month in Portugal, and sells for $300 per month in the States!) was incredible.

Porto offers many international restaurants – amazing Thai, great Korean food, a new Georgian bistro, delicious Vietnamese and BBQ, steaks, seafood and organic cafes. This isn’t something you can find in every city of this size.

Porto is also well connected to the rest of Europe and the world via the Porto International Airport or even the Lisbon Airport, just a few hours south.

Although the rental and purchase prices in all of Portugal (really, in all the world!) have risen in the past 3 or 4 years, it’s not difficult to find a nice 1-bedroom apartment in Porto for under 1000 euros.

If you’re interested in finding a more affordable place to live, Coimbra and Braga are two smaller cities but still have lots of amenities on offer such as cultural events, good transportation, easy access to the airports and great restaurants.

[IL Moderator]

Hi @UNIVERSALPOWERSCEO Thanks for your question!

We have checked in with Terry Coles who has lived on the Silver Coast near the city of Caldas da Rainha, Vilamoura in Central Algarve, and Tavira in the Eastern Algarve. Here is her response,

Dear Diana,

This is Terry Coles, long time contributor to IL and now a long time resident in Portugal. If you are interested in connecting with expats in and around Porto, I’d suggest that you join some of the many Facebook groups pertaining to Portugal, like Porto Expats, American & Friends PT, Americans Living in Portugal, just to name a few. I’m not familiar with Caminha so I cannot be of any help with that location.

Our lives in Portugal began on the Silver Coast near the city of Caldas da Rainha. This location is 1-hour north of Lisbon, in the Central region of the country. But after two years with lots of rain, cold winters and little to no summer, we opted to move to the Algarve. It was EASY for us to make this transition because we were renting furnished apartments. I highly recommend that wherever you settle that you rent for a while before you buy to try out the location year round, and to see if you really want to live in Portugal long term.

Our next location was in the Central Algarve, in the resort town of Vilamoura. Ten months out of the year our complex was quiet, but come summer it filled with noisy tourists that partied day and night. Since it was a very touristy area we had NO expat community or friends, so we would attend meetups in Tavira. After two summers of wild tourists we decided to move once again, to Tavira, in the eastern Algarve.

Porto is a lovely city but winters are rainy, cold and damp, so do keep that in mind. But as I mentioned earlier, I’ve not lived there so it would be best to connect with Facebook expats who have or do.

Take care,
Terry Coles

[IL Moderator]

Hi @GCOMM Thanks for your question!

We’ve checked in with Glenda Cole, our expert in Portugal to get an answer to your question. This was her response,

In the Algarve, pretty much all private docs speak English. In Lisbon and Porto, it requires a bit of research on their websites to find a doctor that speaks English.

If you are moving to Portugal, you want to research a general practitioner who speaks English. They will then refer you to any specialists you need, keeping in mind that you need an English speaker.

My doctor is South African. She speaks better English than I do.

[IL Moderator]

Hi @DAVIDOSTON Thanks for your question!

We’ve checked in with Ted Baumann, our Global Diversification Expert, to get an answer to your question. This was his response,

As with most countries, Portuguese immigration bureaucracy can be difficult to decipher. It’s not uncommon to hear of Wildly different timelines for approval of visa applications. There are many variables, including the embassy or consulate where you made your application, the nature of the supporting documentation and evidence that you provided, whether you used a service provider to help with the application and even the temperament of individual bureaucrats. In general, the best approach is always to go with an experienced immigration consultant. Not only can they ensure that your application is done right the first time, they often know individuals within the bureaucracy who they can contact to expedite matters. In my experience, the charges they levy for these services are more than worth it.

[IL Moderator]

Hi @MARKASHIRAZI Thanks for getting in touch.

My recommendation would be to check out Warren and Julie’s YouTube page. They’re colleagues of ours and have spoken at our online events. They have expertise in the area and should be able to offer the information you need.

Here’s a link to their YouTube https://www.youtube.com/channel/UCsMbJWT2e-3CRhy8LJOa7_g

[IL Moderator]

Hi @PIAZZAAM-0

We’ve checked in with Suzan to get an answer to your question, this was her response,

I’d start with AirBnB.com, VRBO.com and Booking.com — VRBO is owned by Expedia so you’ll often find the same properties listed on both sites. You can also try Kayak, Trivago, etc. Oddly enough, I recently found one property listed on both AirBnb and VRBO…but it was about 30% cheaper on VRBO. You could also reach out to IL correspondents in France, Italy, etc. — they may have some local contacts for you.

[IL Moderator]

Hi @MARKART

We’ve checked in with Suzan to get an answer to your question, this was her response,

Besides AirBnB, I search VRBO.com and Booking.com — VRBO is owned by Expedia so you’ll often find the same properties listed on both sites. You can also try Kayak, Trivago, etc. Oddly enough, I recently found one property listed on both AirBnb and VRBO…but it was about 30% cheaper on VRBO. Many locales—especially the most popular expat destinations— will have Facebook groups devoted to longer-term rentals. Just search, for example, “Granada Spain rentals” or some version of that…or start with “Spain expats” and then ask if there are any FB groups specifically for rentals in the country. Don’t be afraid to negotiate…

[IL Moderator]

Hi @PEACHY-IRAL

We’ve checked in with Suzan to get an answer to your question, this was her response,

This is the age-old dilemma everywhere in the world…one-way rentals also come with huge drop-off fees. And sometimes, taking a vehicle across a border adds to those fees. That’s why I prefer to travel by plane, train, or bus. It’s far more relaxing and often more affordable. Once I am in a city, I have no need for a car. If you are intent on renting a car, though, sometimes if you rent for an extended amount of time, you may get a discount. Here is a website with some info you may find helpful: https://www.autoeurope.com/travel-tips/one-way-car-rental/

[IL Moderator]

Hi @CVSTAMPER

We’ve checked in with Suzan to get an answer to your question, this was her response,

When it comes to long-term rentals, it is best to work directly with an owner and not go through a real estate agent at all if you are looking to secure the best price. An agent has to make money, too, and they usually do that by charging some type of commission or fee which the owner will typically pass along to you. The best way to find a rental is in person. Unless I had a friend or associate who could go and check out a property I would not rent without seeing it in person. When you are on the ground, you can walk the neighbourhood where you are looking to rent and often find signs in windows/on doors, etc. Many locales—especially the most popular expat destinations— will have Facebook groups devoted to long-term rentals. Just search, for example, “Lake Chapala real estate and rentals” or some version of that…or start with “Portugal expats” and then ask if there are any FB groups specifically for rentals in the country.. Once you have found and seen (in person) a property that you wish to rent, let the negotiation begin. If you are working with an agent, there is no harm asking if you can be put in touch with the owner. If not, you will have no recourse but to work through the agent. One negotiation strategy is to offer to pay several months worth of rent in advance in exchange for a sizable discount. Be sure to have a local attorney (one NOT associated with the owner or agent) look over your contract. Make that contract as specific as possible as to your responsibilities and owners responsibilities. Never be afraid to walk away if you can’t agree on terms.

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