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Best arrangement for working in PT for outside PT company?

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Posts: 40
Premium Member
Topic starter
(@healthy_move_portugal)
Eminent Member
Joined: 11 months ago

Hello,

 

I have a meeting with my COO and HR mnager scheduled on friday 27th septeber (next weeks friday).

What would be the best arrangement for me still working for my dutch employer from Portugal?

- Freelance?
- self-employed and then hired by company?
- keeping my current working contract but change adres to portugal (what happens then to the social incurances like unemployment, healthcare and so on?)

 

Any advice would be apprechiated.

I expect that i will be asked how i want to continue the relationship once i have moved to portugal.

 

cheers and thanks

Matthias 🙂

8 Replies




Posts: 231
Premium Member
(@itexpert7)
Estimable Member
Joined: 2 years ago

@thomasribatejo
Do you really need to charge VAT to a business outside Portugal? I thought you can exempt the VAT for foreign business to business transaction. I've actually done that a few times when UK was still in the EU.

What I did to hire workers in Portugal through my UK company was to have them as freelancers. No VAT, and they registered for recibos verdes (=self employed), and pay their own taxes and their own social security (which are high, like in NL).

@healthy_move_portugal
I talked with an accountant a few weeks ago, and you may have another option:
Set up a Portuguese company, and under the NHR **if** your profession is one of the approved ones, pay only 20% tax on the dividends of that company (no corporation tax for small companies that you own over 75%, which sounds too good to be true, I will ask my accountant again.). Then you could buy a car on the company, and save the VAT and tax on it if it's electric or PHEV.

Or if not under NHR, set up a Dutch company, and have your employer pay the company, and you get paid with dividends in Portugal with 0% Portuguese tax, under NHR again.

You need some serious talks with more than 1 expert accountant.

My accountant which I just started with is All Finance Matters in Tavira. Convenient if you're in the Algarve.

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Posts: 40
Premium Member
Topic starter
(@healthy_move_portugal)
Eminent Member
Joined: 11 months ago

thank you for all the replies and information 🙂

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Posts: 40
Premium Member
Topic starter
(@healthy_move_portugal)
Eminent Member
Joined: 11 months ago

Where can i find such an accountant? (AFM from business directory?)
I will be in PT 4th of september for 2 weeks and want to try and get an appointment in that time if possdible.

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Posts: 7
Premium Member
(@iainp)
Active Member
Joined: 9 months ago

I'm in similar situation, UK Company but working from Portugal. Options they gave me were to remain on UK contract and paid through a 3rd party in Portugal (PT tax makes me significantly worse off) or go contract and sort out everything i need to in Portugal. Have contacted a couple of accountants and waiting for replies. So far had mixed response to NHR and sole trader approach.

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2 Replies
Premium Member
(@itexpert7)
Joined: 2 years ago

Estimable Member
Posts: 231

@iainp 
Perhaps you could also set up a small UK company and get paid in the UK, and get dividends tax free into Portugal under NHR. (Like all these TV presenters and NHS consultants do in the UK, get paid through a Limited company).
I use my UK company.
Just another more tax efficient option, although it has its complications.

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Premium Member
(@iainp)
Joined: 9 months ago

Active Member
Posts: 7

@itexpert7 Thanks will look into it

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