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bandanna

bandanna

Active Member
Apr 1, 2023
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#1
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!
 
#3
Sols said:
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.
Click to expand...

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.
 
#4
bandanna said:
Good idea in general, however I don’t own an accredited company which might make things harder.
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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.

bandanna said:
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?
Click to expand...
Cyprus or Malta non-dom status could also work as alternatives to Dubai.
 
#5
Sols said:
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.
Click to expand...

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
 
#9
bandanna said:
What about moving to Dubai, becoming a tax resident, then doing so? ... could be other countries as well, just Dubai seems the most straightforward
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The problem is that you’ll have to pay exit tax on the gains during your entire residency in Portugal if you leave the EU. The NHR regime doesn’t shield you from this.

The only way to legally "avoid" exit tax is to move to another EU country. I put avoid in quotation marks because the exit tax payment is actually deferred until it gets sold within a certain period but the law is vague so I highly recommend to look for a Portuguese tax lawyer
 
#10
What's the exit tax in PT? ... is it valid also on unexercised stock options? also on unrealized gains of stocks?

One idea above was a corp in Malta or Cyprus, which I'm also looking into. It sounds the road to Dubai is tougher than I thought!
 
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