# German expat tax in Portugal [Moving to Portugal](/moving-to-portugal/) Guide Updated 8 October 2026 Law as at 19 October 2026 6 min read [Signed by our advisers](/about/) · 4.7 on Google, 43 reviews A German statutory pension paid to a Portuguese resident is taxable only in Portugal under the other-income rule in the Germany-Portugal convention, but Germany may tax it if it is not subject to tax in Portugal. The German Federal Fiscal Court applied that fallback to a pension exempt under NHR in its judgment of 3 September 2025. A pension for past employment is taxable only in Portugal under the treaty rule for pensions from past employment, which has no such fallback. Most German filings turn on treaty and pension complexity, DBA income allocation, and Abmeldung residency severance. Next step **Moving to Portugal, or already here with income from abroad?** Before the move, we assess your Portuguese tax position and work with your adviser abroad; once you live here, we prepare and file your Portuguese return. [Your annual return](/services/annual-portugal-tax-return-expats/) ## Why German expats in Portugal face specific treaty and pension complexity Germany and Portugal each apply their own residence rules first, then the treaty determines how specific income categories are allocated. But the DBA does not apply automatically. Your [Portuguese IRS return](/guides/irs-2026-portugal/) may need to claim the correct treaty provisions for each income stream. Your German return may need to reflect your non-resident status. Taxbordr prepares the Portuguese side and documents the position so it can be shared with any adviser involved on the German side. ## How the Germany-Portugal DBA allocates your income ### Employment income If you work in Portugal, Portugal taxes the salary. If you work remotely for a German employer, the physical location of work determines taxation. Days worked in Portugal are Portuguese-sourced. Days worked in Germany during business trips are German-sourced. The 183-day rule within the DBA (separate from Portugal's residency rule) determines whether Germany retains taxing rights on short-term assignments. ### Gesetzliche Rente (statutory pension) German statutory social-security pensions fall under the treaty’s other-income rule. This generally assigns taxation to Portugal for a Portuguese treaty resident, but the fallback permits Germany to tax income that is not subject to Portuguese tax. The Bundesfinanzhof confirmed the distinction from the treaty’s past-employment pension rule in its pension judgment, including pensions from professional schemes. Check any preserved NHR exemption before requesting German relief. Where the pension is subject to Portuguese tax and the applicable treaty conditions are met, the residence-state allocation can remove German taxation. Germany applies cohort-based pension taxation under domestic law. ### Riester-Rente A Portuguese credit is subject to the statutory and treaty limits; tax withheld contrary to the treaty must normally be reclaimed in Germany. If you withdraw a Riester contract early or receive a lump sum, the "schädliche Verwendung" (harmful use) provisions may trigger repayment of Riester subsidies to Germany. ### Betriebliche Altersversorgung (bAV) Qualifying payments for former employment can follow the treaty’s past-employment pension rule and be taxable only in Portugal as the residence state. The specific treatment depends on the bAV vehicle (Direktzusage, Pensionskasse, Unterstützungskasse, etc.). ### Rürup-Rente (Basisrente) German deductions for post-move Rürup contributions are restricted for limited taxpayers. ### Dividends and interest Portugal taxes this income stream under the applicable IRS category and treaty method. ### Capital gains Gains on German real property are taxable in both countries. Gains on securities are generally taxable only in Portugal. ### Rental income from German property Taxable in both countries. Germany taxes rental income under its progressive rates (with non-resident Einkommensteuererklärung). Portugal generally taxes net Category F rental income after eligible expenses, at the rates that apply to your residence position. ## Abmeldung and severing German tax residency If you still maintain a usable dwelling or habitual presence in Germany, your local Finanzamt may continue to treat you as resident and tax your worldwide income. 1. ### Abmeldung at the Einwohnermeldeamt Visit your local registration office and formally deregister. You will receive an Abmeldebescheinigung (deregistration certificate). This document is essential for proving non-residency to the Finanzamt. 2. ### Notify the Finanzamt Inform your local Finanzamt of your departure. File your final German resident tax return (Einkommensteuererklärung) for the year of departure. The departure-year German return can also include German-source income earned after German residence ends. Its scope depends on the residence periods and the income concerned. 3. ### Review the home and ties you retain The effect of keeping a German home depends on whether it remains available for your use. Selling, renting or subletting can have different consequences. Ending every club membership or social tie is not a universal requirement. Maintaining a furnished apartment in Germany can cause the Finanzamt to argue you remain subject to unlimited German tax liability (unbeschränkte Steuerpflicht). 4. ### Review Wegzugsbesteuerung exposure Since 1 January 2022 the old indefinite interest-free EU/EEA deferral no longer applies; the [exit tax](/guides/capital-gains-tax-portugal/) is in principle due on departure, though on request it may be paid in seven equal annual instalments, which the Finanzamt generally grants only against security. 5. ### Establish Portuguese residency Register your NIF and establish your Finanças address. Obtain an IFICI eligibility assessment if you are moving for qualifying professional activity. ## Coordinate the required German and Portuguese filings German-source income can remain taxable after German residence ends; Portugal generally considers worldwide income during the Portuguese resident period. | Area | What to confirm | | --- | --- | | German filing | Identify the required residence or non-residence return, taxable German income and any exemption or refund claim. | | Portuguese filing | Map each reportable income stream to the correct annex and category, with foreign-tax evidence and any NHR or IFICI treatment. | | Shared records | Use consistent residence dates, gross payments, withholding and pension classification. | | Timing | Compare the deadlines and availability of assessments. Neither return always has to be filed first. | ### Ansässigkeitsbescheinigung A Portuguese certificate of tax residence may support a German treaty-relief claim. ## Common mistakes German expats make in Portugal - Not deregistering properly. The Abmeldung alone does not end German tax residency if you maintain a German dwelling. - Withdrawing Riester early. A Riester contract terminated after emigration triggers repayment of state subsidies (Zulagen) and tax benefits. - Ignoring Wegzugsbesteuerung. German entrepreneurs with GmbH shares who move without dealing with the exit tax face penalties and interest. - Assuming treaty relief is automatic. A non-resident may need a BZSt refund claim, although some relief can be available at source depending on the payment and procedure. - Claiming a Portuguese credit before checking the pension treaty rule. First identify whether the past-employment pension rule or the other-income rule applies and whether Germany is permitted to tax the payment. Coordination with your German Steuerberater helps keep both returns aligned under the DBA. ## Dual-return coordination: Finanzamt and Finanças Cross-border accuracy requires consistent facts and figures across both administrations. ## Frequently asked questions ### Does Germany continue to tax me after I move to Portugal? Generally, only on German-sourced income once you no longer have a Wohnsitz or gewöhnlicher Aufenthalt in Germany and your status is accepted as non-resident. Germany may continue to tax German-source rent, dividends and employment income under the applicable rules. ### What is Wegzugsbesteuerung and does it apply to me? German exit tax under the German exit-tax rules can apply when the statutory residence-history and shareholding conditions are met and German unlimited tax liability ends through giving up residence or habitual abode. Other transfers or restrictions of Germany’s taxing right can also trigger it. Abmeldung is evidence of a move, not the tax trigger by itself. ### How is my Gesetzliche Rente taxed when I live in Portugal? German statutory social-security pensions fall under the treaty’s other-income rule, as do the professional-scheme pensions addressed in the German Federal Fiscal Court’s pension judgment. The treaty’s other-income rule normally allocates income to Portugal for a Portuguese treaty resident, but permits German taxation if the income is not subject to Portuguese tax, including the legacy NHR exemption considered in that case. ### Will my Riester pension be affected if I move to Portugal? A Riester pension is private pension provision, so it falls outside the treaty’s past-employment pension rule, which covers only pensions for past employment; on the German Federal Fiscal Court’s reasoning in its pension judgment it falls under the treaty’s other-income rule, which gives Portugal the taxing right but lets Germany tax the income if it is not subject to tax in Portugal. If you terminate the Riester contract early after emigration, you trigger "schädliche Verwendung", repayment of all state subsidies and tax benefits. Keeping the contract until regular pension age avoids this consequence. ### Do I need a Steuerberater in Germany and an adviser in Portugal? In most cases, yes. We establish the Portuguese treatment and work with your German Steuerberater on the German returns, exit-tax elections and withholding-tax refund claims, so the two returns use consistent income figures and treaty relief. This guide is by **[Telmo Ramos](/about/)**, our founder, an economist and member no. 16379 of the Ordem dos Economistas. ## Related guides - Guide · Law as at 19 October 2026 ### [Social security in Portugal 2026: employees and freelancers](/guides/portugal-social-security-expats/) Understand Portuguese social security for employees and freelancers: contribution rates, first registration, exemptions, payment dates and SNS differences. - Guide · Law as at 19 October 2026 ### [Foreign income in Portugal: Anexo J step by step](/guides/portugal-foreign-income-tax/) A Portuguese tax resident is taxed on worldwide income, including income obtained abroad. - Guide · Law as at 13 June 2026 ### [Moving to Portugal: tax checklist for 2026](/guides/moving-to-portugal-tax-checklist/) Plan the tax steps before and after a move to Portugal: home-country departure, tax residence, NIF, income records, IFICI and your first return. ## Tell us about your situation For people living in Portugal with ties to Germany: we answer your questions, prepare your Portuguese return with your income from Germany and work with your adviser there. We reply within 2 working days with the right service, its price and how to start. ## Tax Consultation A 30-minute call with your adviser, then a follow-up memo within 3 working days after the call. [Book a Tax Consultation](/book/) --- Source: https://taxbordr.com/guides/german-expat-tax-portugal/ General guidance only. Individual facts govern.