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Interactive Tool Financial Planning

Relocation Financial Simulator

Complete “before vs after” financial picture: is your move to Portugal or Spain financially positive or negative, and by how much? Uses 2026 tax rates, real cost of living data, and healthcare costs.

Important Notice

This simulator provides estimates based on 2026 IRS brackets (Rev. Proc. 2025-32, incl. One Big Beautiful Bill adjustments), the 2026 FEIE limit, current Portuguese and Spanish tax rates, and aggregated cost of living data. It does not account for state taxes, AMT, NIIT, social security contributions, or individual lifestyle variations. Results are for informational purposes only and do not constitute financial, tax, or legal advice — always consult qualified professionals for your specific situation.

Personal Details
Destination
Portugal IFICI: 20% flat rate on Portuguese-source earned income for 10 years. Requires university degree (EQF 6+), no PT tax residency in prior 5 years, and employment in qualifying sectors (technology, IT, research, healthcare, energy, manufacturing).
Your Current US Costs (Monthly)

Pre-filled with US averages. Adjust to match your actual spending for a more accurate comparison.

Options

Worked Examples

Scenario: $120,000 Salary, Single, Age 35–54, Moving to Lisbon (Standard Rates)

Tax impact: In the US, federal income tax on $120,000 is approximately $18,050. In Portugal under standard progressive rates (up to 48%), Portuguese tax on the same income is approximately €41,950 ($45,300). Both the FEIE and FTC produce $0 US tax at this income level (below the $132,900 exclusion limit, and FTC fully offsets). The total tax abroad is approximately $45,300 vs $18,050 in the US — a $27,250 annual tax increase.

Cost of living: Lisbon rent, groceries, utilities, and transport average approximately €1,340/month ($1,450/month) vs the US average of $2,450/month. Annual COL savings: approximately $12,000.

Healthcare: Private health insurance in Portugal for the 35–54 age bracket averages approximately €100/month ($108/month) vs $600/month in the US. Annual healthcare savings: approximately $5,900.

Result: The move is financially negative by approximately $9,600 per year. The Portuguese tax increase ($27,250) outweighs the combined savings on cost of living ($12,000) and healthcare ($5,900), minus $280 in visa costs. However, qualifying for the IFICI regime reduces Portuguese tax to approximately $24,000 — changing the result to financially positive by approximately $11,700 per year.

Scenario: $85,000 Self-Employment Income, Single, Under 35, Moving to Valencia (Beckham Law + Digital Nomad Visa)

Tax impact: In the US, federal income tax on $85,000 (after SE deduction) is approximately $9,000, plus $12,000 in self-employment tax — total $21,000. In Spain under the Beckham Law (24% flat), Spanish tax is approximately €18,900 ($20,400). SE tax applies regardless. Total tax abroad is approximately $32,400 vs $21,000 in the US — an $11,400 annual tax increase.

Cost of living: Valencia is one of the most affordable major cities in Europe. Monthly costs average approximately €1,030 ($1,110/month) vs $2,450 in the US. Annual COL savings: approximately $16,100.

Healthcare: Private insurance for under-35s in Spain averages approximately €75/month ($81/month) vs $600/month in the US. Annual healthcare savings: approximately $6,200.

Result: The move is financially positive by approximately $10,700 per year. Valencia’s dramatically lower cost of living and healthcare costs more than offset the tax increase. Even with self-employment tax (which applies identically in both countries), the total financial picture strongly favors Valencia.

Methodology & Sources

This simulator combines four financial components using data from government and institutional sources:

Limitations

This simulator does not account for: state income taxes, Alternative Minimum Tax (AMT), Net Investment Income Tax (NIIT), social security contributions (Portuguese or Spanish), currency hedging costs, wealth tax (Spain), itemized deductions, or lifestyle differences. Cost of living estimates represent averages for a single person or couple — families with children may face significantly different costs. Results are estimates intended to inform, not replace, professional financial advice.

  1. IRS, Revenue Procedure 2025-32 (2026 tax year inflation adjustments, incl. One Big Beautiful Bill)
  2. IRS, "Foreign Earned Income Exclusion" (Publication 54)
  3. IRS, "Foreign Tax Credit" (Publication 514, Form 1116 instructions)
  4. PwC Worldwide Tax Summaries, "Portugal — Individual: Taxes on personal income" (2025)
  5. PwC Worldwide Tax Summaries, "Spain — Individual: Taxes on personal income" (2025)
  6. Numbeo, "Cost of Living" (aggregated data, accessed March 2026)
  7. idealista, rental price indices for Portugal and Spain (February 2026)
  8. SEF/AIMA, Portuguese visa and residence permit fee schedules
  9. Spanish Consular fee schedules (Tasa 012, 052)

Frequently Asked Questions

The simulator compares six cost categories: US federal income tax vs dual-country tax (automatically selecting the better method between FEIE and Foreign Tax Credit), cost of living (rent, utilities, groceries, transport), private healthcare insurance, and annual visa/permit fees. It does not include state taxes, AMT, NIIT, local social security contributions, currency hedging costs, or wealth tax. You can also optionally include one-time moving costs, which are added to the Year 1 destination total in the 5-year projection.
The simulator computes your US-only tax baseline (what you would pay staying in the US), then runs both the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credit (FTC) methods for your destination country. It automatically selects whichever method produces the lower total combined tax bill (US tax + foreign tax). For a detailed breakdown of the FEIE vs FTC decision, use our dedicated FEIE vs FTC Calculator.
Cost of living figures are city-level averages based on Numbeo aggregated data and idealista rental listings as of early 2026. Actual costs vary significantly by neighborhood, lifestyle, and personal choices. Rent estimates reflect a one-bedroom apartment in or near the city center. You can adjust your current US costs to match your actual spending, which significantly improves accuracy on the US side. Destination costs use our estimates and cannot be customized in this version.
Special tax regimes can dramatically change your result. Portugal’s IFICI regime applies a 20% flat rate on Portuguese-source earned income for 10 years but requires a university degree (EQF 6+), qualifying employment sector, and no Portuguese tax residency in the prior 5 years. Spain’s Beckham Law applies a 24% flat rate on Spanish-source income up to €600,000 for 6 years but requires no Spanish tax residency in the prior 5 years and is primarily available to employees. Toggle the regime checkbox in the simulator to see the financial impact, then consult a tax professional about your eligibility.
A financially negative result means the tax increase from dual-country taxation outweighs your savings on cost of living and healthcare. This is common for moderate-to-high income earners moving to major cities like Lisbon under standard progressive tax rates, where Portuguese rates reach 48%. Options to improve the result: qualify for IFICI or Beckham Law (which can swing the result by $15,000+), choose a lower-cost city like Porto or Valencia, or check whether your actual US costs are higher than the defaults — many people in high-cost US cities spend significantly more than our averages.
The 5-year projection applies these annual growth rates: earned income +3%, cost of living +3% (both countries), US healthcare costs +5% (reflecting higher US medical inflation), destination healthcare +3%, and the FEIE exclusion limit +2%. Visa costs and exchange rates remain flat. One-time moving costs, if included, appear only in Year 1. These growth rates are estimates for illustration purposes — actual rates will vary based on economic conditions, personal career trajectory, and policy changes.

Every guide and tool is independently researched, cites primary sources, and follows our editorial policy →. We may earn commissions from partner links — this never influences our recommendations. Spot an error? Let us know.