0% tax on almost all foreign source income with NO MINIMUM STAY

[Kaseder]

There is no other place with these key advantages:
- 0% tax on almost all foreign income
- no minimum stay
- easy residence for EU citizen

The Comprehensive Guide to NHR, Portugal's Tax Regime

Portugal's NHR tax regime gives generous benefits to non-habitual residents including tax exemptions. Read for guidelines on how to apply.

www.globalcitizensolutions.com

The ONLY proof of residence requested is to have a property in portugal or a rental agreement. Since i will buy a property in portugal i can provide a rental agreement at low cost to anyone interested in this unique tax regime. Of course i can help too with setting up the nhr regime .
Somone asked me about what to do if taxation will change.. well it already happened : they raised taxation on pensions from 0 to 10% but they DIDN'T ENFORCE it on who already enrolled in nhr (New 10% income tax charge on pensions under Portuguese NHR regime (via Passle)). So there is a good chance if you enroll now that you will maintain the actual 0% taxation. Even if they should change this, you could simply not renew your rental agreement and move elsewhere

If someone wants to talk in private, you can contact me on telegram, I have the same username : kaseder.
Good luck to everyone else setting up his future!

 

[void]

Is this any good for EU citizen who would actually qualifies as tax resident of another EU country at the same time?
In which scenario can I benefit from this?

 

[Kaseder]

Is this any good for EU citizen who would actually qualifies as tax resident of another EU country at the same time?
In which scenario can I benefit from this?

No, You can live wherever you want but your tax residence must be in Portugal. You must deregister your residence in your actual country and register in portugal

 

[SoNewToAllShit]

So you will need to buy property in Portugal otherwise it won't work?

 

[Kaseder]

So you will need to buy property in Portugal otherwise it won't work?

No, as i wrote , the proof of residence requested is to have property OR simply a 12months rental agreement. Since i am buying a property i can make such rental agreement to someone interested in enroll like me in NHR regime. The rental will be enough to mantain your NHR status and enjoy 0% tax on foreign income

 

[Mike Forman]

If all was that simple... Maybe 20 years ago this would have worked.

How and where is your personal income generated? That's where it will be taxed.

If you don't live in Portugal and can't provide solid proof in the country you are residing that you spend most of the time in Portugal (bills, spending, tax certificate, rent,..) you will just pay the tax rate in the EU country you reside. A 0pct tax certificate wont help you much either just as setting up an offshore HK company running from your home country won't help

 

[Kaseder]

If all was that simple... Maybe 20 years ago this would have worked.

How and where is your personal income generated? That's where it will be taxed.

If you don't live in Portugal and can't provide solid proof in the country you are residing that you spend most of the time in Portugal (bills, spending, tax certificate, rent,..) you will just pay the tax rate in the EU country you reside. A 0pct tax certificate wont help you much either just as setting up an offshore HK company running from your home country won't help

Exactly. You must have a foreign source of income( like capital gains, dividends etc.) and you of course must not have tax residence in other countries or you will be taxed elsewhere

 

[European]

Exactly. You must have a foreign source of income( like capital gains, dividends etc.) and you of course must not have tax residence in other countries or you will be taxed elsewhere

@Kaseder
What if you are a freelance working from Portugal for foreign clients, say the US. Would that income be taxed at 0% or 20%?
Thanks

 

[GrumpyMess]

- 0% tax on almost all foreign income

Not true, there's a lot of income types they threat as local one. It's a trap

 

[Larin]

Guide to Portugal’s Non-Habitual Residency (NHR)

Read all about Portugal’s unique tax scheme for non-habitual residents, and how it can benefit digital nomads and freelancers.

nomadgate.com

The relevant part: Contrary to popular belief, the tax breaks on employment are not the main benefit of NHR, as income is sourced where the work is performed. As an example, if you have foreign clients, but do the work from Portugal, it is not considered foreign source. In this case, you would still have to pay the 20% rate on domestic income (presuming the work qualifies as one of the high-value professions).

 

[GHD999]

Not true, there's a lot of income types they threat as local one. It's a trap

The EU doesn't want Portugal to turn into a tax haven. NHR people must pay tax "somewhere else" like dividend withholding tax.

Portugal has a blacklist of tax havens. If you receive income from a blacklisted country you will pay 28% or 35% unless it has DTA but still they expect you to pay tax at the end of the day.

 

[European]

Guide to Portugal’s Non-Habitual Residency (NHR)

Read all about Portugal’s unique tax scheme for non-habitual residents, and how it can benefit digital nomads and freelancers.

nomadgate.com

The relevant part: Contrary to popular belief, the tax breaks on employment are not the main benefit of NHR, as income is sourced where the work is performed. As an example, if you have foreign clients, but do the work from Portugal, it is not considered foreign source. In this case, you would still have to pay the 20% rate on domestic income (presuming the work qualifies as one of the high-value professions).

Thanks @Larin
Can you provide an example in which you as a freelance would be taxed 0% on your active income under NHR (assuming you qualify)?
If you have a consulting project, for instance in another EU country, that requires you to work at the client site during the week, would that be taxed at 0%. Or only if that work was actually taxed in the other country would you get access to the 0%?

 

[Larin]

Thanks @Larin
Can you provide an example in which you as a freelance would be taxed 0% on your active income under NHR (assuming you qualify)?
If you have a consulting project, for instance in another EU country, that requires you to work at the client site during the week, would that be taxed at 0%. Or only if that work was actually taxed in the other country would you get access to the 0%?

This is not a tax advice and I am not not a lawyer or an accountant, so please treat this message as such.

Technically speaking only days spent in Portugal working on the project would be considered Portuguese-sourced income. Israel, which has a similar program actually requires you to keep track of every day worked and split the days accordingly. So if you work Mon-Wed in a different country and Thu-Fri in Portugal, technically you would only be liable to pay tax on the 2 days a week you work in Portugal. However, you may be liable to pay tax on the other 3 days in the country where you perform services (since that income would be locally sourced in that country). That would depend on DTAs and local tax laws.

 

[RealDude]

For example, if you work for a customer in Germany for more than 183 days per year, Germany will want to tax you completely for the whole year.

 

[Larin]

For example, if you work for a customer in Germany for more than 183 days per year, Germany will want to tax you completely for the whole year.

In this example it would be a lot sooner than 183 days. It could happen as soon as you had a dwelling available to them (they would have to live somewhere to perform their duties after all). It would then come down to where you have a center of vital interests.

Germany - Individual - Residence

Detailed description of individual residence rules in Germany

taxsummaries.pwc.com

 

[European]

In this example it would be a lot sooner than 183 days. It could happen as soon as you had a dwelling available to them (they would have to live somewhere to perform their duties after all). It would then come down to where you have a center of vital interests.

Germany - Individual - Residence

Detailed description of individual residence rules in Germany

taxsummaries.pwc.com

I guess if you are staying in a hotel paid by the client you are working for, as in many consulting engagements, it would not count as available dwelling

I guess if you are staying in a hotel paid by the client you are working for, as in many consulting engagements, it would not count as available dwelling

But then I still do not know whether Portugal would apply a 0% or a 20% to this income under NHR