Portugal Tax Planning for Freelancers & Self Employed
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- Опубликовано: 18 окт 2024
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Portugal has been extremely popular in the past and its popularity only seems to be increasing! Here on this channel topics about Portugal are among the most popular, and lots of our clients are considering Portugal as a part of their strategy.
Portugal is interesting because of so many things: tax efficiency especially around crypto, the famous NHR program, the most popular Golden Visa in the world, amazing food and weather, good quality of life, entrepreneurial community, etc.
We've been informed that Portugal is so popular among ex-pats, that their banks stopped accepting new applicants for Golden Visa until the end of the year. The volume is more than they can handle.
When it comes to Portuguese taxes, and tax planning there has been some bad advice circulating, and it's our duty to inform you about those so you don't end up in trouble.
Who are we and what do we do?
We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.
We have lots of interesting articles on different topics, we have relevant information up to date.
Author: Michael Rosmer
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#Portugal #PortugalTaxes #TaxPlanning #NHR
Great video! This was a topic I'm actively considering to engage in. Thanks for always making informational videos that are so on point and provide specific actionable information, unlike another "Capitalist" channel we all know that teases info so he can get an overpriced retainer.
Thank you for your support, Ethan! Truly appreciate it 🙏
How you seen any of our other videos on Portugal?
@@OffshoreCitizen Yes. I've watched every one, especially the comparison videos. I've been weighing Bulgaria vs Portugal in order to gain EU citizenship, as an American. Thanks for your content!
Thank you for discussing this topic. It can be hard to find information online about effective control and management of a company in the context of Portugal.
Really useful video. Thank you!
Glad it was helpful!
Thanks for the advice! You talked about forming companies, bit what if you have companies that have been running a few years before you relocate? I am in USA and have three active singly owned LLCs with EINs, I've heard that those are acceptable foreign corporations that won't get scrutiny?
Michel, you mention freelancers… when someone is self employed… basically a digital nomad (but not nomadic if they are moving to Portugal, of course)… but they haven’t employees (or maybe have a part-time VA)… and their income comes from, let’s say website design) where do they fall in all of this?
(BTW, I sent you a message through your website contact form, last week).
you pay full tax where u r tax resident
Same situation as me !
Any response?
Hope next time you can put a link below for all videos related to Portugal.
(For some reason I’m not getting notified of your videos 🤔)
Try re clicking the bell. Thanks for the feedback!
You can always search for 'Portugal' on our channel and all the videos will pop up :)
@@OffshoreCitizen
Thanks!
Portugal will be the biggest rug pull ever. Mark my words. haha
People are overselling the NHR, it's nice, but you still have 28% capital gains tax. Also, the 10% on pensions is only applicable to matured retirement schemes, so can't pull money from an IRA at 10% if you are not > 59.5
You do have tax free foreign dividends, but I am not sure about the best way to structure to live off a portfolio in that case.
The good thing about PT is the absence of inheritance tax/exit tax and citizenship after 5 years. If you are already european and young, it's suboptimal. They also have a tax haven list.
For an early retiree/investor, weirdly enough Spain can be better, even if you include the wealth tax. 28% capital gains in portugal for me is a killer. if they could bring it down they would be flooded by folks
It really depends on the type of your income. For some people it's great for others it requires structuring, and for others it's not great. But there's also multiple factors to consider like quality of life, cost of living, and move toward citizenship
@@OffshoreCitizen Agree. I think for someone that really wants EU citizenship, it's a good option
I have no idea why people are flocking to Portugal in droves. The NHR program is good, but that only lasts 10 years and then you either have to move to another country to take advantage of their tax rate, or stay in Portugal and pay their high income tax rates on foreign income
Awesome!
Is Andorra a good option for the NHR?
I've spoken to a lot of clients, in the US - either they or know someone else who are going to Portugal longterm.
It's becoming quite a popular location.
If I remember correctly, you and your wife are also considering it?
@@OffshoreCitizen Thursday... Early flight from London to Porto... I'll email you a photo from a bar overlooking the Douro River - just to make you jealous! MANY thanks for your advice!
Awesome!
Have a safe flight. Looking forward to the photo😄
Great detailed points! Traveling to Lisbon soon :)
Thanks!😄
Awesome! For the first time or you've been there before?
I have NHR but they removed my profession as a psychologist and got 5000 Euros to pay in Portugal after paying more than $7000 in USA. I had to pay for an amend, still waiting for the results. And my income was just above $35,000 annually. 🤦♀Very screwed up. Let's see if next year I file Portugal first and then request the tax credit in the US.
You should always pay first in Portugal then claim credits in the US since Portugal has the primary taxing right under the treaty
Hi Michael. If you are in Portugal under NHR and have a business in a foriegn country (living off 0% dividends) do you still need to submit returns in Portugal and the foriegn country?
Thanks, Michael for this great vid! I'm an Australian Marketer, I launched my Australian company 8 months ago. Even though I want to diversify and increase my offerings as a business down the track, essentially I am working as a Digital Marketing Freelancer at the moment (under this company). I am looking to bring on a VA to cover the Australian hours when I move. I am unsure what category I fit into with the self-employed / freelancer visa. What tax regime will I need to follow? I'm feeling overwhelmed by all of this - very confusing!
If I'm understanding correctly, if I'm a crypto day-trader, and it's just me running my own business; I should qualify for a NHR?
ruclips.net/video/OvjNZNwCpCU/видео.html have you seen this video of ours?😄
@@victoneter haha no taxes are a key concern still.
Day trader as well. Getting smoked in the US cap gains. Even mark to market isn’t enough
I am a computer scientist working as self employed in Spain. I am considering relocating to Portugal under the NHR program. My income is generated in Germany, will this be tax-exempt under NHR?
No
@@betterthanallofyou No, it is not! 100%
Michael
We have an LLC in the US
From what I understand it cannot be used in Portugal.
My husband will be receiving commissions from sales from a particular security company. He also receives commissions from a small arrangement with another colleague. From what I understand he is considered to be self-employed. Sales does not qualify as one of the professions on the NHR. We were told that if he set up a company he could pay himself and have expenses for deductions.
Do you agree with this as an approach? Do you help set up these type of companies in portugal?
So many vids on YT about moving to Portugal or at least talking about it. It's insane the amount. I don't get the appeal. I mean it's an OK country, but it's also one of the countries in Europe with the highest EMIGRATION rates. Yes, emigration, not immigration.
I guess local people are unable to get well-paying local jobs and so leave. Emigrants are mainly retirees and digital nomads perhaps all on NHR? Local salaries around €10k-€15k per annum?
That's the "good" thing for digital nomads. Emigration due to low salaries also explains why is cheap to live there. If you get your digital income with global benchmarking then it's all good, while if you pick a wealthy country you would struggle
Locals pays a huge taxes and have low salaries, but it is a beautiful country to live as expa.
That's a good thing. It means prices remain affordable. You never want to go to a place where there's large population growth. It's a recipe for disaster. On top of that Portugal is a fairly fantastic place to live - affordable and in Europe with plenty of sun.
Hi Michael,
So if the company we freelance for and invoice weekly is in Australia but we live in Portugal we can apply for NHR as freelance (creative arts) and then pay 14.9% Social security? Would that be correct from my research 😊🙏
Hi Michael, question. What are our options if we get tax residency in Cypress? That is, as an Australian does it give us any added benefit to travel/reside in any of the EU countries?
Cyprus isn't Schengen yet so it doesn't give extra access to other EU countries
I’ve watched a lot of these videos and I still can’t figure out if I’m a contractor for a US company (but it’s not my company, I just bill them a fixed amount per month), does the NHR help me or not?
I'm in the same situation and have the same doubt, were you able to find some answer to that ?
What about day traders that trade the US markets? If I am in the country but trading a foreign market is this considered foreign or domestic income?
We need some specific tax advice on moving to Portugal. I will get paid by my Canadian employer, but the work I will not be taxed in Canada. I believe it will qualify as high value added income, therefore not taxed in Portugal. But I want to get clear advice. How do I engage your services.
Happy to assist you!
To get personalized advice, it's probably best to book a consultation calendly.com/michael-rosmer
You can tell me all about your specific situation and I'll guide you on the best solution and any next steps
@@OffshoreCitizen how much does a consultation cost?
Hi Michael, question, is it possible to start up a Bulgarian company with residency there yet spend more than 183 days in Portugal under NHR, hence paying Bulgarian taxes since Portugals foreign incomes are tax exempt?
Portugal foreign income isn't tax exempt necessarily, only in certain types of income.
Also important to note the definition of foreign.
So the answer is maybe...depends on the details of the business and operations. Best is to reach out to us to discuss specifics
If I (US citizen) work as an independent contractor for my wife’s US LLC with a umbrella corporation in a tax haven. My Japanese wife renounces her US green card status and we take $0 salary/dividends keeping the profit as retained earnings while living in Portugal. While at the same time living in Portugal and living off of other income that is more favorable to the NHR regime. Then move away from Portugal in 6-7 years into a country like Panama or Malaysia and withdrawal all of the retained earnings tax free?
Is there any way to live in Portugal as a day trader and legally pay low tax rates? By creating a LLC or something like that? I currently live in Thailand and am considering moving back (as Portuguese citizen) to Portugal with my family.
If there is a good opportunity to pay legally low tax rates, I would like to book an appointment!
No not really, not without hiring a bunch of foreign staff
@@OffshoreCitizen Thank you for your response
Currently setting up my NHR, and starting a business in Aus with a partner there. Need to show income according to the Portuguese NHR Regime, but dont have income yet. Any suggestions?
find out of you need to file if u have no income . if loss you shud file to carry forward loss
Starts at 2:16
How did you like the video?😄
@@OffshoreCitizen it was awesome from there on! 🙂
Is there a way a Portuguese citizen moves to a blacklist country and don't pay individual income tax in Portugal in the next 5 years?
Excuse me. Iam from outside the European Union
If I work online for a company outside Portugal, I got the d7 and my income is 1000 euros
What percentage or fees do I have to pay approximately monthly in taxes, health insurance, and social security taxes?
did you figure this out yet? Are temporary visas for 1 year or less still available, and is it easier then with D7?
Is income earned from RUclips taxed under the NHR regime?
Depends on the character of the income, in many cases yes
How will add income and affiliate income be taxed? (thank you, nice channel!)
Hi Michael, great video really enjoy your content. Im Irish and moved to Portugal in April this year for crypto benefits. Forming a consulting corporation in Ireland and going to be paying myself dividends here to Portugal on the NHR. I work online and provide services to an American company. Interesting points you made thank you
Happy to hear you enjoyed it!
How are you liking Portugal?😄
@@OffshoreCitizen Absolutely love it. My girlfriend and I had been living and working in spain for 3 years and I think they are taking a negative stance on crypto(tax and banks) so we easily drove across the border and set up here in Lagos, Algarve thankfully. People are alot more chill here compared to Spain and the NHR system was too attractive to ignore. Crypto is widely spoken about and I have met alot of people here with similar interests. There is alot of investment coming in here
@@liamhiggins4301 what about social security there though? Is it not 23 per cent or something nuts?
Just the video for me.
Happy to be of service 😄
Have you seen any other videos of ours on Portugal?
@@OffshoreCitizen Heard of a Portugal freelancer visa option and the montly income requirement is really low like around 500 Euros. Does passive income from crypto count as income?
Gosh, this is overly complicated; you can explain this in much simpler terms.
I agree. I can tell he has a good predisposition to help but he uses too much wording instead of going to the point. Most people are here to know how to cheat the system the easy way
What about setting up a bank account in a different country, directing all your client's payments to that bank and not disclosing that money to Portugal tax authorities?
Aside from it being illegal, check out our video on the Common Reporting Standard
Where can my company be located in order to pay me a salary in Portugal while minimizing payroll (e.g. social security/mandatory social contribution) taxes as a NHR resident?
Exactly Michael, great advise. There's a lot of BS out there on YT regarding Portuguese taxes. People need a reality check, jus like the one you've given with this video. Thanks!
Always happy to be of service ☺
Are you in Portugal?
@@OffshoreCitizen Yup, I'm Portuguese and came back to Portugal, from Malaysia, back in 2014
I think you have my WhatsApp number... remember? We spoke last time