Expat Community > Portugal

2Aussies
Joined 2020
Posts: 16

D7 Eligibility, Taxes, Healthcare

3 years ago

Hi All, we are still not allowed to fly overseas from Australia unless we meet specific criteria for an Exemption from the Federal Government. The D7 does not meet the requirements! This indefinite pause has made us re-think our financial future Down Under versus retiring in Portugal and/or the US. We are early 60's. I am US born, but dual Aussie. My husband is Aussie and Permanent Resident of US. We have been calling Australia home for several years but missing family in the States. The big deterrent is my husband did not work long enough in US to get Social Security. So I have no clue how expensive it would be to secure private health care for him, as I would be eligible for Part A. Just getting a rough idea of the monthly bill might put that plan to rest! Australia has enjoyed a good public health system which has been basically free except a copay for some procedures. But it is quickly changing to a US model which is prompting us to rethink things. We feel quite isolated here and hoping to retire in Portugal or return to live in US but feel with the dramatic currency differences/healthcare costs, that we are dreaming? Unfortunately, we do not have any IRAs, retirement income, stocks, etc. We consider our real estate properties here as our nest egg. We have no debt, a healthy bank balance equal to high six figures in euros and own 2 properties that provide roughly 12,400 euros per year gross income. We pay taxes both in AUS and USA. This all may sound good until you figure out the currency conversion! 1 Aussie Dollar equals 62 Euro cents and 74 cents USD. I imagine that would go very fast if we need a major surgery or have to pay even more taxes than we already do. The only secure income stream we have in the future, is when I file for Social Security, which I was hoping to do at age 70.

Taxation: it sounds like Portugal would tax us on both our tenant income here in Australia as well as future Social Security income? Would there also be a tax due when the day comes we sell our 2 properties in Australia (I think Spain does). We plan on just renting in Portugal but if we move back to US, would most likely buy there.

So, in summary, I don't think we even would get approved for a D7 Visa, as our monthly rental income falls short of the PT minimum requirements. I ask this question, as recently I got knocked back for an Australia Visa credit card because they said tenant income is not reliable, despite having no debt and a nice bank balance here! The Visa people even said that I could go and gamble all of our money away, quite surprising! I don't want to have to tap into my Social Security any earlier, if possible as our Aussie dollars don't go very far. Feels like the only thing keeping us in Australia is the public health care. Pre-Covid we were traveling about 6 months a year abroad, and the roundtrip airfare alone to US or EU is what we'd pay for a full year of health coverage in Europe!

Sorry for the novel, but any suggestions would be most welcome! The several lockdowns in Melbourne have perhaps made me overthink things!

Thank you very much!

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Living in Portugal Guide

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Additional Information:

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D7 Eligibility, Taxes, Healthcare

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