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Best arrangement for working in PT for outside PT company?

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Posts: 27
Premium Member
Topic starter
(@healthy_move_portugal)
Eminent Member
Joined: 3 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 🙂

14 Replies




Posts: 3
Premium Member
(@iainp)
New Member
Joined: 1 month 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: 1 year ago

Estimable Member
Posts: 191

@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: 1 month ago

New Member
Posts: 3

@itexpert7 Thanks will look into it

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Posts: 27
Premium Member
Topic starter
(@healthy_move_portugal)
Eminent Member
Joined: 3 months ago

quick update on the subject...i just sent my letter of resignation to my company ending my contract on 31st of December this year.

I don't want to work in January, reserving the month for moving to PT and setting up camp.

Still two options remaining for me to work for Dutch company in PT:

a) new contract / employment with address in PT and all taxes and social securities payed in PT (my preferred choice, as i don't have to sort out anything) or

b) setting up my own company and bill the Dutch company for every worked hour (preferred model by Dutch company, but I need to setup corp and decide how much my hourly rate needs to be to have same salary as now).

 

Have had contact wiht AFM and am waiting for them to make an appointment for a video meeting to discuss details and make a decision.

 

Ill keep you posted/updated

Matthias

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1 Reply
Premium Member
(@itexpert7)
Joined: 1 year ago

Estimable Member
Posts: 191

@healthy_move_portugal 

The choice should be easier, if you do some calculations on how much money will end up in your pocket. So if you earn 4000 euro a month, and in option A (taxes and huge social paid in PT), you have 2000 take home (just a figure on top of my head), and option B (Portuguese company, pay fixed 20% tax under NHR, according to AFM plus minimum wage from the company to you) you take 3000 home (and can declare expenses also to reduce taxes, even buy a company car), the difference can be so immense that it makes your choice easier.

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