Online Workers Looking to Move to Portugal - NHR
Nov 27th 2019, 1:58 pm
#1
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Joined: Nov 2019
Posts: 1
Online Workers Looking to Move to Portugal - NHR
Both myself and my wife work online currently in the UK.
She does conference transcription work for an Asian company with offices in the USA,
I have my own websites & get affiliate commission purely from the USA.
Both paid in USD into UK banks, but we could soon change that..
I have googled this extensively and seen people from the USA doing similar work and being tax free but they may move on - digital nomads.
We would look to rent at first then buy later.
Obviously like anyone, we want to pay the least tax possible.
Can anyone please advise where we stand with NHR?
Obviously Brexit might muddy the waters.
All advice gratefully received. I have been going round in circles online looking at this.
Geoff
She does conference transcription work for an Asian company with offices in the USA,
I have my own websites & get affiliate commission purely from the USA.
Both paid in USD into UK banks, but we could soon change that..
I have googled this extensively and seen people from the USA doing similar work and being tax free but they may move on - digital nomads.
We would look to rent at first then buy later.
Obviously like anyone, we want to pay the least tax possible.
Can anyone please advise where we stand with NHR?
Obviously Brexit might muddy the waters.
All advice gratefully received. I have been going round in circles online looking at this.
Geoff
Nov 27th 2019, 6:37 pm
#2
Forum Regular
Joined: Feb 2013
Posts: 265
Re: Online Workers Looking to Move to Portugal - NHR
Generally income from paid employment will be taxed either there or here. Your income stream seems more complex as involving 3 countries so better to get professional advice.
- Foreign-sourced employment income is IRS exempt (with progression), provided that it is effectively taxed in the source State (i) under the rules of a DTT or in, the absence thereof, (ii) of the OECD Model Tax Convention, as long as such income is not deemed to arise from a Portuguese source under the IRS Code territoriality rules.
Nov 27th 2019, 11:09 pm
#3
Forum Regular
Joined: Feb 2016
Posts: 257
Re: Online Workers Looking to Move to Portugal - NHR
If you are working online in Portugal, I think you still need to pay tax in Portugal even under NHR. It’s best talking to tax advisor to see how you can structure the tax.,
Nov 29th 2019, 11:11 pm
#4
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Joined: Jan 2011
Location: Algarve, Portugal
Posts: 391
Re: Online Workers Looking to Move to Portugal - NHR
You might also want to think about if where you move to in Portugal your internet access will be guaranteed and not easily blocked or otherwise disrupted for you to be able to work effectively online. In my experience it cannot be taken for granted in Portugal evenif it works well initially.
Nov 30th 2019, 11:03 pm
#5
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Joined: Jul 2016
Location: Alvaiázere, central Portugal
Posts: 591
Re: Online Workers Looking to Move to Portugal - NHR
A clarification of Coleio’s post. The income has to be of a kind which is taxable in the home country, but which, under the DTA is now subject to tax in the new country, whether that other country chooses to tax it or not. If online income can be deemed to be within or without the NHR remit I cannot say. However, you might be able to set up a UK company or (less clearly) a limited liability partnership. That structure would then employ you.
This is a legal/accountancy issue, and let me echo the sound words of others in this thread: good quality, robust advice is essential, whilst you are in the UK and make your plans. Once you step foot in Portugal your options will alter and reduce.
if you would like the name of an Exeter firm I used for advice PM me. I have no connection with them and they gave me good advice, prevented a potentially fundamental error on my part, and saved me a lot of money.
This is a legal/accountancy issue, and let me echo the sound words of others in this thread: good quality, robust advice is essential, whilst you are in the UK and make your plans. Once you step foot in Portugal your options will alter and reduce.
if you would like the name of an Exeter firm I used for advice PM me. I have no connection with them and they gave me good advice, prevented a potentially fundamental error on my part, and saved me a lot of money.
