Hard to believe we have been here two years already! It’s time to ask permission to stay longer.
In May, we submitted all the documentation to renew Bernie’s residency, and today I’ve submitted mine. (It’s based on when your initial car was entered, and mine took a little longer to be processed).
What happens next?
Our first residence permit was for two years. The renewal is for three. At the end of that time, we will have been in Portugal for five years, and some new options open up.
- We’ll do this same renewal process, to ensure that we retain our permission to be here while we move on to a next step.
- Once we have that renewal, we’ll apply for permanent residency. That’s a forever-process, so we don’t have to keep submitting tons of documents (some of which have to come from the US, be apostilled, and other finicky stuff). If they grant us permanent residency, it’s permanent – we just renew the ID card every five years or so, like a driver’s license.
For others in the same boat: Click the link or the image to see the step by step of our experience.
And then…?
Once we have lived here for ten years, we have the option of requesting Portuguese Citizenship (that has always been our intention, but it isn’t the case for everyone who comes here). That’s a bigger process, and for various reasons, we’ll hire an immigration attorney to assist.
What About Your US Citizenship?
Both Portugal and the US allow dual nationality, so there’s nothing we have to do but keep renewing our passports and paying our taxes. 🙂
Could we choose to renounce US citizenship? Yes – it’s an option and something we’ll examine closely. That comes with up sides and down sides, and as a choice it may be impacted by the realities of things like social security. As laws change and the status of our retirement funds is impacted, we’ll have to make decisions that make sense for our specific circumstance.
Trivia: the US is the only country that taxes citizens the same no matter where they are in the world. (people often cite Eritrea as the second, but their 2-3% diaspora tax is more similar to countries that charge citizens abroad ‘some tax but not as much as those residing at home’). Lots of folks think that if you renounce citizenship, that changes. But there are two important things to know:
- The US still retains ‘first rights’ on a lot of stuff – and they will withhold 30% of social security to ensure you pay what they consider their fair share, so no, renouncing citizenship doesn’t magically make the US go away and leave you alone. Indeed, they charge you *to* renounce.
- It’s illegal to renounce *for the purpose of* getting out of taxes. And if you so much as suggest that’s what you’re doing, one of the many consequences is that you can be forbidden from every returning to the US even as a visitor.
So if someone tells you they are renouncing US citizenship to get out of taxes – just walk away. You don’t want any part of that nonsense.
Anyone considering renouncing needs to think about the fiscal considerations for their specific situation and act accordingly, sure. But just as applying for citizenship is about making a connection and a home in a new place, renouncing citizenship is about cutting ties with one. It’s essentially a divorce, not a tax strategy.
As for us – IF we’re able to obtain Portuguese nationality, then we’ll consider what to do with our US nationality. Til then – watch this space for the “applying for permanent residence” process outline – five years from now. 🙂
