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Living in Portugal and Having a Romanian company

Kosem

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I have searched this forum, and so several people ask the same, but it seems that all of these topics were left "opened", so trying my luck.

I am living in Portugal, and considering opening a micro company in Romania (I am a Romanian citizen).

Based on the research I did, as long as one is living in Portugal for more then 183 days a year (which is my case) - He would pay tax of his worldwide income. Till here? - Make sense (+-).

Then comes the NHR and they say that you could have some kind of tax reduction, which is nice. For instance, if you get paid by dividends, you are exempt in Portugal (or something like that).

That could be a great route, because if you are taxed on this dividends in Romania, you pay something like 10-15% tax, which, again, is ok with me.

Problem starts when Portugal say: "Oh, this is your company and you are living here, so as far as we concern, it is a Portuguese company and you should pay the same tax as a portuguese company, regardless of NHR".

Now... as far as I understand, you can solve this problem (not sure if it would be easy) by appointing a director. Lets assume hire a person for a full time in Romania and have his title and job to be a "Director" which will manage the company for you, and thus, you could pass the "Self management test".

Question is: Has anyone tried that route?.

I met with an accountant in Portugal, which isn't from the major cities, but a small city far away from the major ones. He seems to not know what "Self management test" is. So.. I am still trying to find an accountant who knows this kind of stuff and could advise on it - so far?, other then several who wanted 400 euro for 30 minutes' session - nothing came up. I do value their experties and all, but damn, 400 euros for 30 minutes?. I am a software engineer and I am not earning like that.

So, could use your advises on this possible route and if you know someone who handles this kind of stuff - let me know.

Thank you.


The question is:
 
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The Romanian government is going to increase the taxes on microcompanies starting September so you should better wait.
If you are Romanian citizen but you haven’t declared yourself (at Tax Authority) as living abroad you’ll be taxed in Romania for all the income you’ll have from Romania as you are still tax resident.
If the Romanian company is controlled from Portugal, the Tax Treaty is not applicabile therefore you will have to pay taxes in both countries but Portugal won’t know about your income in Romania as Romania won’t report anything (you are tax resident in Romania from their perspective).
 
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Now... as far as I understand, you can solve this problem (not sure if it would be easy) by appointing a director. Lets assume hire a person for a full time in Romania and have his title and job to be a "Director" which will manage the company for you, and thus, you could pass the "Self management test".
Beside that you will need to rent a real office with utility supply, it's cheap in Romania and worth it taxwise if you make some serious money!

There have been both Romania and Portugal accounting firms around here on Offshorecorptalk in the past, not sure why they don't shim in here! But I would consult some of the big tax firms in Portugal to help you i.e. PriceWaterHouse, Deliotte or something.

There is a guy inside mento group gold advertising his services here:
 
Beside that you will need to rent a real office with utility supply, it's cheap in Romania and worth it taxwise if you make some serious money!

There have been both Romania and Portugal accounting firms around here on Offshorecorptalk in the past, not sure why they don't shim in here! But I would consult some of the big tax firms in Portugal to help you i.e. PriceWaterHouse, Deliotte or something.

There is a guy inside mento group gold advertising his services here:
We are considering starting a new company, and I believe the profits on the first 1-3 years will be next to nothing. But question is, if I open a local company in Portugal and after 3 years for example close it to move all operations to Romania and get tax benefits - I assume it would not look nicely? (in terms of... they would say you moved the operations just to evade tax?)
 
If you are not making any profits why all this troubles ? Wait until you make profits and then you can plan your business setup!