FATCA and FBAR: What U.S. Expats in Portugal Need to Know
If you’re a U.S. citizen or permanent resident living in Portugal, your tax obligations don’t end with filing a U.S. tax return. You may also need to report foreign accounts and assets under FATCA and FBAR requirements — and the penalties for missing these forms can be significant.
FBAR (FinCEN Form 114)
You must file an FBAR if the combined value of your foreign financial accounts exceeded $10,000 at any time during the previous calendar year. This applies to:
- Bank accounts (checking and savings) held in Portuguese or other non-U.S. banks
- Pension accounts
- Foreign investment and brokerage accounts
FATCA (IRS Form 8938)
If your total foreign financial assets exceed certain thresholds — for example, $200,000 for single filers living abroad — you may also need to file Form 8938 under the Foreign Account Tax Compliance Act (FATCA). Reportable assets include:
- Foreign business ownership
- Foreign mutual funds or ETFs
- Non-U.S. brokerage and retirement accounts
Why It Matters
FBAR and FATCA are separate from your U.S. tax return but are usually filed at the same time. Non-compliance carries severe penalties, including:
- Up to $10,000 per violation for failing to file
- Up to 50% of account value for willful non-compliance
Expert Support for U.S. Expats in Portugal
Through our partnership with Taxes for Expats — a highly rated tax service for Americans abroad — you can ensure proper filing of FBAR, FATCA, and your full U.S. tax return. Prismaat clients benefit from a $25 discount on tax preparation services.
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Further Reading
- U.S. Tax Preparation for Expats in Portugal
- In-Depth Guide to FBAR Filing
- Are Your Accounts FATCA Exempt?
- FEIE: Foreign Earned Income Exclusion Explained
- Understanding the Foreign Tax Credit
Don’t risk costly mistakes. Let trusted experts handle your compliance — get started here with Taxes for Expats.
