Schwebble

Hi everyone,

I'm a German who's spent a decade in the UK, and it feels like my second home. Yet I've recently decided to go freelance and move to Portugal where I should be able to get NHR (being a IT consultant).

Despite Brexit, I am considering incoporating myself in the UK (language, easy of setup, client perception). I'm kinda new to all this business setup and tax thing, so I was hoping you lovely people could give me a few pointers.

1. If I pay myself in dividends from my UK company, are they not taxed under the NHR regime, essentially leaving me with the UK corporation tax?
2. If that is correct, am I not contributing to any social security in either country and hence am I unprotected in case of problems?
3. If that's not true, any recommendations what would be a better way to set myself up in Portugal and an external business?

Thanks for any advice!

-F

Pilou

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free.ekanayaka

Hello Schwebble,

I'm new to this forum, and just read your question while searching for NHR info. As far as I understand if you are the sole owner of the UK company you'll most likely fall under CFC (Controlled Foreign Company) regulations, which means that your company would be considered tax resident in Portugal despite being registered in UK ("effective management rule").

Did you end up figuring out how to legally be an IT freelance in Portugal invoicing UK clients and be exempt from income tax for that work?

Thanks!

stephan71

Just a quick thought,... as the UK corporation tax is 19/18% I wonder if it is really worth the hassle if under NHR you'd only pay 20% anyway (and avoid all the additional paperwork etc etc).