Compare · Portugal vs United States
Portugal vs United States for Australians leaving home
Portugal:Worldwide taxNo AU treatyUnited States:Worldwide taxAU tax treaty
Portugal and United States run the same headline regime, worldwide tax, so the decision turns on the details underneath: what each one does to capital gains, dividends and the Australian income you keep.
The treaty position splits them: United States has a full Australian tax treaty (tie-breaker plus withholding capped at 15% on unfranked dividends), while Portugal has none, no safety net if both countries claim you.
Portugal is the cheaper place to live day to day, roughly 65% of Sydney's basket against United States's 115% (indicative, ex-rent), which can outweigh a thinner tax saving over a full household budget.
Personalise this, enter your numbers once and every figure below becomes yours: “your estimated income tax: $14,200”, not “0, 22%”. Open the Country Comparison tool →
| 2 destinations | PortugalPortugal | United StatesUnited States |
|---|---|---|
| Tax | ||
| Regime | worldwide, taxes worldwide income | worldwide, taxes worldwide income |
| Income tax on salary | Progressive 13, 48% plus solidarity surcharge above €80k. A €100k salary pays roughly 37% effective, Portugal is not a low-tax country for salaries. | Federal 10, 37% plus state tax (0, 13.3%) plus FICA (7.65% employee side). A US$150k salary in California pays roughly 30%+ combined; in Texas closer to 24%. |
| Capital gains | 28% flat on share gains (option to aggregate at progressive rates). Short-term gains on assets held <365 days must be aggregated at progressive rates for high earners. (28% typical) | Long-term (12+ months) federal rate 0/15/20% plus 3.8% NIIT above ~US$200k income; short-term gains at full ordinary rates. States tax gains as ordinary income, California adds up to 13.3%. (15% typical) |
| Dividends | 28% flat on dividends and interest, wherever sourced, with no AU treaty relief. | Qualified dividends at 15% (20% top). Australian franking credits are invisible to the IRS, franked dividends are just taxable income with a credit for the AU WHT. |
| Interest | Taxed locally around 28% | Taxed locally around 24% |
| Crypto | Crypto held under 365 days is taxed at 28% on disposal; gains on crypto held longer than 365 days are exempt for individuals. Crypto-to-crypto swaps are generally not taxing events. Professional trading is business income at progressive rates. | Crypto is property: every disposal (including spending and swaps) is a capital gains event, short-term gains at ordinary rates, long-term at 0/15/20%. Broker reporting to the IRS is now systematic. |
| Australia tax treaty | No, full 30% / 10% withholding, no tie-breaker | Yes, AU withholding capped at 15% dividends / 10% interest, tie-breaker available |
| Social security | Employees pay 11% social security; the self-employed pay ~21.4% on a discounted base. Not included in the calculation above, budget for it. | FICA (6.2% social security capped + 1.45% Medicare uncapped) applies to US employment; a totalisation agreement with Australia prevents double super/social security in most postings. |
| Visa | ||
| Best pathways |
|
|
| Visa ease | 7/10 | 6/10 |
| Family on visas | Dependants covered on main pathways | Dependants covered on main pathways |
| Fastest timeline | ~4 months on the quickest pathway | ~2 months on the quickest pathway |
| Money | ||
| Rent (family home, monthly) | $4,200/mo | $7,500/mo |
| Rent (couple, monthly) | $2,600/mo | $4,500/mo |
| International school (per child/yr) | $18,000 | Free / local system viable |
| Health cover (family/yr) | $4,500 | $20,000 |
| Cost of living vs Sydney | 65% of Sydney (ex-rent) | 115% of Sydney (ex-rent) |
| Relocation one-off | ~$22,000 | ~$30,000 |
| Flights home (return, pp) | $2,600 | $2,000 |
| Life | ||
| Timezone vs AEST | 9h behind | 18h behind |
| Flight from Sydney | ~26 hours | ~13.5 hours |
| English | 6/10 | 10/10 |
| Safety | 9/10 | 6/10 |
| Healthcare | 7/10 | 8/10 |
| Schooling | 7/10 | 8/10 |
| Climate | Mild Atlantic climate, warm dry summers, wet 15°C winters in poorly heated homes. | Continental spread, LA is 20, 28°C and sunny most of the year; pick your city, pick your climate. |
Costs, rates and visa figures are country-module data marked indicative until individually verified; FX and rental markets move constantly.
Honest downsides, side by side
Every destination hub on this site carries its downsides in the open. Here are both lists together, because the right question is rarely “which is better?” and usually “which set of problems would you rather live with?”
Portugal
- No Australia tax treaty: a contested residency year can leave the same income fully taxed in both countries with only messy unilateral credits between you and double tax.
- NHR is gone for new arrivals, the 20% IFICI successor is narrow, and most Australians will face full progressive rates up to 48% plus 28% on investments.
- Salaries and bureaucracy are Southern European: local pay is low, AIMA appointment backlogs are real, and everything official takes months.
- It is the single worst time zone on this list for keeping Australian clients, 9, 10 hours behind AEST means your overlap is their evening.
- Winter housing is genuinely cold and damp; central heating is the exception, not the rule.
United States
- This is a move for career and earnings, not tax, combined federal + state + FICA in a coastal city will roughly match or exceed your Australian rate.
- Healthcare is tied to employment and ruinously expensive without it; a family plan's premiums and deductibles can exceed A$25k/year of exposure.
- The IRS relationship is sticky: green card holders are taxed on worldwide income for life until formal surrender, and FBAR/FATCA reporting on Australian accounts carries brutal penalties for innocent omissions.
- Your superannuation is a US tax problem: no treaty article clearly protects it, and treatment (foreign grantor trust? employee trust?) is unsettled, specialist advice is non-optional.
- Gun violence, litigation culture and the cost of failure (no safety net) are real quality-of-life deductions Americans price in and Australians don't.
Make this comparison yours
The table above shows the general figures. Enter your income and family once and the tax rows become your numbers, “your estimated income tax in Lisbon: $14,200”, not a range.