Better taxes than Portugal

[bandanna]

I’m a tax resident in Portugal under NHR (v1), and shareholder/investor in companies abroad where I get mostly paid in dividends not taxed in PT where it’s taxed at the source. Additionally I own equities of public and private companies where it’s becoming good time to sell. But the taxes in Portugal are not great for that, mostly 28% tax on the difference between buy or fmv price to the sell price. Instead, I’m considering to move to Dubai at least for a period of a year, become a tax resident there.

How long do I need to stay in Dubai in order to be protected from tax liability in Portugal? Do I really need to wait until TRC in UAE or can I just move to Dubai and from day one sell those shares? And I might be rusty, isn’t TRC available after 90d or it really changed to 183d?

PS - if you were in the same situation, would Dubai be the country to do that tax optimization in, or anything else comes in mind? For example recently Thailand recently seem to have some tax friendly laws.

Thanks!

 

[Sols]

Can you transfer your shares to a holding company? Then you sell your shares, the profits go to the holding company, and the holding company pays you dividends.

 

[bandanna]

Can you transfer your shares to a holding company? Then you sell your shares, the profits go to the holding company, and the holding company pays you dividends.

Good idea in general, however I don’t own an accredited company which might make things harder.

Also weirdly an accountant advised to move the shares to an operating company of line instead, still trying to figure why not the holding entity.

 

[Sols]

Good idea in general, however I don’t own an accredited company which might make things harder.

What do you mean by "accredited company" in this context?

A holding company is nothing special. You can create one and sort out banking all in a couple of weeks. Appoint local directors if you want some peace of mind.

PS - if you were in the same situation, would Dubai be the country to do that tax optimization in, or anything else comes in mind?

Cyprus or Malta non-dom status could also work as alternatives to Dubai.

 

[bandanna]

What do you mean by "accredited company" in this context?

A holding company is nothing special. You can create one and sort out banking all in a couple of weeks. Appoint local directors if you want some peace of mind.


Cyprus or Malta non-dom status could also work as alternatives to Dubai.

You are absolutely right and thanks for the tips. I’m certainly curious to learn in the event or deciding to move to Dubai or other country, how can I do it

 

[Alex Braun]

What's wrong with good ol' collateral loans?

 

[Alonzo]

Transferring shares to a holding company for the sole purpose to avoid exit tax is risky. Talk to an experienced tax lawyer in Portugal