D7 & NHR for self-employed/foreign earned income – Visas, Residency & Citizenship – Expats Portugal Community Forum

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D7 & NHR for self-employed/foreign earned income  


Posts: 9
Premium Member
Topic starter
(@gwritejill)
Active Member
Joined: 4 weeks ago

I own a business in the USA, where I currently live. My business will remain in the US, and it only has US clients. I don't want to move it or create a subsidiary in PT (mostly because I do not want to invoice my clients from PT ever & as I understand a PT business has to use their invoice/accounting system).

If this matters, the details are: It is an online service based business. I have employees. As the owner, I no longer do the actual work, but I do manage and make company decisions. Not sure if that is considered "working" in PT or not. I've had my business for years, so while the revenue does fluxuate (what business doesn't?), it is for the most part, steady and/or increasing. 

#1: Am I going for a D7 visa then? 

#2: How should I set up paying myself to meet the requirements for D7 and NHR? Should I do payroll or just dividends? (I read somewhere that it "depends how you pay yourself" but they did not say which way to do it!) I assume I need to show both my business account and my personal account, right? 

#3: NHR status means I am paying US taxes, right? I file but owe nothing to PT, and I file US and pay the taxes due. Yes? US is a lot lower tax rate than PT, I assume.

#4: Currently, my merchant account processes payroll, too. They take the payroll directly from the sales revenue. The balance is then deposited into my business account, for all other OPEX and Owner $$. Since your video said all bank statements/financials should be "easily understood" (which is hugely subjective), should I have all revenue deposit into my business account and then payroll come from the same account - just to show the total sales earned? 

Appreciate you all! 

p.s. I did reach out to relocation services/lawyer...they all had a different answer of what to do! Since I need 6 months of statements and want to go in 2021, now is the time to make sure it's all being processed correctly!

2 Replies
Posts: 17
Community Member
(@jeanne)
Active Member
Joined: 3 months ago

I cannot put my fingers on the source, but I recall reading that if a company is " managed" from PT it is deemed to be conducting  business in PT and therefore subject to PT taxation. This may even have been mentioned on one of the GMP webinar sessions, so you may want to review those. 

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Posts: 9
Premium Member
Topic starter
(@gwritejill)
Active Member
Joined: 4 weeks ago

I got an answer! 

You have to take care with the terms you use to ask questions - or you get the wrong answers from PT. I didn't realize!

So if you are in the US, have a US company and are going to PT....you put yourself on payroll (w2 not a 1099) and give yourself a "Letter of Employment". Then when you go to PT, you will qualify for NHR. You are an "employee".

This does not work for just "self employed" or "freelance". Then they assume you are working in PT and earning in PT...then you don't get NHR, instead you get the tax bill. LOL Plus, if you are in PT and working, then you need to use the PT invoice system and all that it involves. 

If you are in the US and work for yourself and want to go to PT....make sure your company is established, put yourself on payroll and you'll be fine!

Thanks all!

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