Permanent establishment - would we put our employer at risk? – Red Tape / Business – Expats Portugal Community Forum

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Reis & Pellicano International Lawyers

Permanent establishment - would we put our employer at risk?  


Posts: 8
 Noo
Premium Member
(@stx99)
Active Member
Joined: 2 months ago

Hi there

We are thinking about moving to Portugal to live for some or all of the year on an ongoing basis. We both work for a small UK company from our home (even pre-covid) and so in theory basing ourselves out of Portugal wouldn't mean much practical difference for our employer for the work we do.

However, if we both worked out of our rented apartment in Portugal, would we be triggering a Permanent Establishment situation?

My husband has a technical role but I do bits of everything, which includes marketing, some business development and contract preparation. All of that is for UK based work, however, and would still be the case if we were in Portugal. We wouldn't be seeking to develop business opportunities in Portugal.

An alternative would be to live in Portugal for less than 183 days per year but I don't know if that would protect our employer and if that would affect our residency status and our aspiration to eventually get Portuguese citizenship.

Perhaps I'm asking for the world on a stick! 😆

5 Replies

Posts: 340
Admin
(@astridff)
Active Member
Joined: 9 months ago

Seems your question has stumped many of us - not answers for you.

Are there others at your company who work abroad? If so, I would think your employer may have a better idea?

 

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Posts: 8
 Noo
Premium Member
(@stx99)
Active Member
Joined: 2 months ago

Yes, it would seem so!

The company I work for is small. Usually questions like these would come in my direction to figure out, so I'm just doing the work up front 😊 .

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Posts: 15
Community Member
(@bulkbiker)
Active Member
Joined: 1 month ago
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2 Replies
 Noo
Premium Member
(@stx99)
Joined: 2 months ago

Active Member
Posts: 8

@bulkbiker So sorry for not coming back to you earlier. Thanks for the link!

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Community Member
(@bulkbiker)
Joined: 1 month ago

Active Member
Posts: 15

@stx99 No worries hope it helps.

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