Key Takeaways
- High-income New York City residents face layered federal, state, and city taxes that significantly reduce after-tax wealth.
- Portugal’s Golden Visa offers residency rights in Portugal with minimal physical stay requirements and without automatic Portuguese tax residency.
- Investment-fund-based Golden Visa routes, such as asset-backed hospitality funds, can align residency planning with capital preservation, although historical returns are not a guarantee of future returns.
- Recent legal changes extended Portugal’s citizenship timeline to 10 years of residency for most applicants, yet Portugal remains one of the few European countries offering a path to citizenship without relocation.
- VIDA Capital advises investors on Portugal’s Golden Visa and asset-backed fund options; to discuss your situation, contact VIDA Capital.
NYC Taxes: What High Earners Actually Pay
Layered NYC and New York State Income Taxes in 2026
High earners in New York City face city and state income taxes on top of federal obligations. NYC income tax for 2026 follows a progressive structure, from 3.078% up to $12,000 of income to 3.876% on income above $50,000 for single filers. These city rates apply in addition to the New York State tax.
New York State income tax rates for 2026 range from 4% to 10.9% for high earners, with 9.65% on income between $2,155,351 and $5 million, 10.3% from $5 million to $25 million, and 10.9% above $25 million for single filers.
Combined Burden for Top Brackets
The combination of federal, state, and city taxes can reach very high marginal rates. NYC residents earning more than $25 million can face a combined marginal personal income tax rate of about 14.776% at the local and state level, before factoring in federal taxes. These combined pressures often drive high earners to explore cross-border residency strategies.
Migration Trends Among High-Income New Yorkers
Outmigration of high earners from New York City has become measurable. Post-pandemic analysis shows a net loss of million-dollar earners from NYC, with many relocating to lower-tax locations. For some, international residency options now form part of long-term wealth and mobility planning.
Investors who want a structured Plan B in Europe often consider residency-by-investment programs, with Portugal’s Golden Visa currently one of the most flexible for those who do not want to relocate.
Portugal’s Tax Position for Golden Visa Holders
Residency Versus Tax Residency in Portugal
Golden Visa status gives residency rights in Portugal, but it does not automatically make you a Portuguese tax resident. Tax residency usually arises when you spend more than 183 days a year in Portugal or establish it as your primary home.
Non-tax-resident Golden Visa holders can maintain their existing tax base while holding residency rights in Portugal, provided they do not trigger Portuguese tax residency rules.
Minimal Stay Requirements for a Plan B
The Golden Visa requires a physical presence of at least 14 days in Portugal every two years. This light requirement makes the program suitable for investors who want residency in Portugal without disrupting their current lifestyle or tax structure.
Key Tax Points: NYC Versus Portugal (Non-Tax-Resident GV Holders)
|
Tax Category |
New York City Resident (High Earner) |
Portugal (Golden Visa Holder, Non-Tax Resident) |
|
Income Tax |
Federal up to 37%, NY State up to 10.9%, NYC up to 3.876% |
No Portuguese income tax on non-Portuguese income if not tax resident |
|
Capital Gains Tax |
Applies to worldwide assets for U.S. persons |
No Portuguese capital gains tax on non-Portuguese assets if not tax resident |
|
Inheritance Tax |
Federal estate tax and possible NY State implications |
No inheritance tax to direct heirs in Portugal |
|
Wealth Tax |
No formal wealth tax, but high income taxation |
No formal wealth tax |
This framework means a U.S. person can hold Portuguese residency through the Golden Visa while remaining primarily taxed in the United States and not in Portugal, as long as they avoid Portuguese tax residency status.
How the Portugal Golden Visa Works in 2026
Program Overview and Eligibility Route
Portugal’s Golden Visa remains one of the few options in Europe that can lead to citizenship without requiring relocation. The program grants residency rights in Portugal, visa-free travel in the Schengen area for up to 90 days in any 180-day period, and, after longer-term residency, a potential path to citizenship.
Spain has closed its Golden Visa program, and Greece requires seven years of living in the country and paying taxes there for long-term residence and citizenship. Portugal’s low stay requirement helps it stand out as a Plan B option.
Fund Investments as the Current Route
Since October 2023, the Golden Visa requires a minimum investment of €500,000 into qualifying investment funds. Personal properties are no longer eligible. This structure directs capital into professionally managed vehicles that support Portugal’s economic activity.
Asset-Backed Strategy with the VIDA Fund
Asset-backed funds such as the VIDA Fund focus on acquiring and transforming existing hospitality assets in Portugal, giving these properties a second life. This approach provides exposure to the country’s tourism sector through tangible assets rather than purely financial instruments.
The VIDA Fund’s strategy emphasises capital preservation and income generation, but historical returns are not a guarantee of future returns. Investors should treat past performance as one reference point rather than a promise.
Family Coverage and Mobility
The Golden Visa can include spouses, dependent children who are full-time students and not working or married during the program, and dependent parents or in-laws over 65. Applicants can use either a marriage certificate or other accepted proof of relationship for partners.
The family shares Portuguese residency rights and Schengen visa-free travel during the residency period. After citizenship, family members gain the right to live, work, study, and access public healthcare and education across the European Union and Schengen Area.
Residency and Citizenship Timeline After 2025 Changes
- Temporary residency: The first Golden Visa residency card is valid for two years.
- Renewals: Investors must renew for two additional two-year periods, maintaining the investment and meeting the 14-day-per-two-year stay requirement. As the approval card issuance usually takes a year, you will most likely only need to do a single renewal instead of two in the 5-year period.
- Permanent residency: After five years of legal residency in Portugal, investors can apply for permanent residency if they still meet the requirements.
- Citizenship: From October 2025, most applicants must complete 10 years of residency before applying for citizenship. Nationals of Portuguese-language countries (CPLP) and EU citizens generally have a reduced requirement of seven years. The new rules should apply to Golden Visa holders unless they submitted a citizenship application before the new law was published.
Practical Planning For US High-Income Investors
Integrating the Golden Visa into a Plan B
High-income U.S. investors can use the Portugal Golden Visa to add geographic and legal diversification to their planning. The program allows them to keep living and working where they are today, while building a structured option to relocate to Portugal, or elsewhere in Europe after citizenship, if needed.
Role of Legal and Advisory Support
The Golden Visa process usually spans 12 to 18 months and involves detailed documentation and compliance. Working with a specialized Portuguese lawyer is essential at every step, from obtaining a tax number to submitting applications and renewals.
VIDA Capital acts as an advisory partner, helping investors select qualified law firms, assess Golden Visa-eligible fund options, and align their investment choice with personal objectives and risk tolerance.
Step-by-Step Golden Visa Outline
Pre-application, with legal guidance:
- Choose a specialized Portuguese law firm, with referrals from VIDA Capital if needed.
- Obtain a Portuguese tax number (NIF) with your lawyer, often remotely.
- Open a Portuguese bank account, typically with legal assistance and remote onboarding.
- Select a qualifying fund and commit at least €500,000.
Application and approvals:
- Your lawyer submits the online application for you and eligible family members.
- After preliminary approval, you attend an in-person biometrics appointment in Portugal.
Residency cards and renewals:
- Receive a two-year temporary residency permit for Portugal.
- Renew for additional two-year periods, maintaining your fund investment and spending at least 14 days in Portugal every two years.
- After five years, apply for permanent residency, and after 10 years of residency (or seven for CPLP and EU nationals), evaluate a citizenship application.
To discuss whether this framework suits your situation, reach out to VIDA Capital.
FAQ: Portugal’s Golden Visa and US Tax Considerations
Q1: How does a Portuguese Golden Visa affect my U.S. tax position?
A1: U.S. citizens and green card holders remain taxed on worldwide income, regardless of where they hold residency. Golden Visa status in Portugal does not change U.S. tax residency. Portuguese tax only becomes relevant if you also become a Portuguese tax resident.
Q2: Are there tax advantages if I stay a non-tax-resident in Portugal?
A2: Non-tax-resident Golden Visa holders generally do not pay Portuguese tax on non-Portuguese income or gains. The main advantage is adding Portuguese residency rights without adding another full layer of income taxation.
Q3: How do capital gains taxes differ between NYC and Portugal?
A3: A high-income NYC resident pays U.S. federal and New York State taxes on capital gains, plus potential NYC tax, on worldwide assets. A non-tax-resident Golden Visa holder usually pays no Portuguese tax on gains from non-Portuguese assets, though U.S. rules still apply. Investors should confirm details with a U.S. tax advisor.
Q4: Is investing in a Golden Visa fund a taxable event for U.S. purposes?
A4: Making the fund investment is usually treated like any other investment allocation and is not taxable in itself. Future income and gains from the fund remain taxable in the U.S., and foreign reporting rules may apply.
Q5: How does the 14-day stay requirement work?
A5: Golden Visa holders must spend at least 14 days in Portugal during each two-year residency period. The days can be non-consecutive and spread across the two years, which makes it practical for investors who travel frequently.
Should You Explore the Portugal Golden Visa?
High-income NYC residents who want to mitigate concentration risk in a single tax and legal system often view Portugal’s Golden Visa as a strategic second base. The program links residency in Portugal to regulated fund investments, with a clearly defined, if now longer, route toward EU citizenship.
If you want to explore how an asset-backed fund approach, such as the VIDA Fund, might fit your broader plan, remembering that historical returns are not a guarantee of future returns, contact VIDA Capital for tailored Golden Visa advisory support.
