Menu
Expat.com
Search
Magazine
Search

Tax on US social security

Got another tax question Johnny,

I have read confusing explanations on the tax rate for SS income. How does Portugal or specifically The Azores levy taxes on it? Is it dependent on your total income?

It is interesting that the Azores has their own branch of the government. They seem to have different goals and thus different regulations.

Tem um bom dia, meu amigo

Sam

See also

Here is a IRS simulator (IRS is income tax):


https://www.comparaja.pt/financas-pesso … ulador/irs

You must select your Municipio / Council in Azores, so that IRS reduction can be applied.


When it comes to personal income tax (IRS):

  1. Lower Marginal Tax Rates: The Azores applies a regional discount (a reduction of up to 30% on standard national rates) across tax brackets.
  2. Because your Social Security is taxed under standard progressive IRS brackets, you pay significantly lower tax rates on that income in the Azores compared to living in mainland Portugal.
  3. Lower VAT (IVA): Beyond income tax, the Azores has a standard VAT rate of 16% (compared to 23% in mainland Portugal), lower sales taxes, and reduced corporate tax rates for businesses. 



Have you see this? It’s all benefits 🙂

2 members reacted to this post

@JohnnyPT

You need to write a book Johnny

Further reading