Life is complicated enough without double taxation

“After calculating the taxes that I would owe, it became clear that I simply could not afford to live in Portugal (or anywhere else in Europe for that matter) and enjoy the opportunities and advantages of my (dual) European citizenship.”

— Nadya from Bulgaria and Seattle

Dear Congress,

My name is Nadya. I am a dual citizen of Bulgaria and the United States. I currently live in beautiful Seattle, Washington.

I was born in Bulgaria, grew up in Europe and North Africa, and at the age of 29 immigrated to the United States and obtained U.S. citizenship a few years later. I have called Seattle my home for the past 2 decades. My children were born here and have made their homes in the United States. I also still have Bulgarian citizenship and have enjoyed visiting European Union countries visa-free as an EU citizen.

Last year, I decided to move to Portugal and settle there, as I have always had a huge love for the country, culture and people of Portugal. I work independently as a mental health therapist, and for the last 5 years, as a result of the pandemic, and ever-changing technology advances, I have been able to work remotely. So when I made my journey to Portugal and chose a city to settle in, I was very hopeful that I would be able to continue my remote work from there.

It took about 4 months into my new life in Portugal and a lot of extensive research and consultations with various legal and financial experts to realize that I would be a victim of the double taxation challenge presented to Americans living abroad.

As an independent - considered “worldly”-  income earner, I fall into the category of a very high tax bracket in Portugal - 49% due to the government. I also am responsible for paying 30% of my independent income to the IRS, in addition to the taxes paid to the Portuguese government. After calculating the taxes that I would owe, it became clear that I simply could not afford to live in Portugal (or anywhere else in Europe for that matter) and enjoy the opportunities and advantages of my European citizenship. I am not willing to renounce any one of my citizenships to avoid the taxation challenges.

The information about American tax laws for citizens living abroad is inconsistent and difficult to understand. I have found, through my own experience, that it is definitely not an advantage to be an American citizen and struggle with residing in Europe. I am hopeful that the U.S. Congress will take my story into consideration, along with those of many others, and change the regulations around double taxation to allow Americans to explore the world with financial stability and freedom to live anywhere they want to.

Sincerely,

Nadya from Bulgaria and Seattle