Moving from Netherlands to Portugal

[Termi]

Im a freelancer in tech and I recently made some money selling crypto in nov 2021. Now im pursuing daytrading and its going decently well.

I would like to move to Portugal and live a more rural quiet life. I have a wife and a kid (1.5 yr old)

Moving cross country 3 country style is not possible. Moving after 10 year nhr might be.

I laid out my plan to an advisor he said:
Start a dutch company
Avoid director wages of 45k by moving to portugal and apply for nhr.
Start as a portugese freelancer pay the minimum
Free dividend payments from dutch business.

The dutch business will do trading and consultancy in IT.

Tax would only be corp tax of 15/25% on profits and a reduced director salary. And the tax on the portugese freelance thingy.

Any remarks about this? I only avoid dividend tax for 10 year with NHR.

(On a dutch company you must pay yourself 45k wage and pay income tax on that if you are a dutch resident)

 

[Jerry1911]

As far as I know - Dutch BV substance rules require that at least 50 percent of the board consist of Dutch tax resident directors. Otherwise the BV won't be resident in the Netherlands. And since you would be a Portuguese resident, the BV would most likely be resident in Portugal.

 

[Termi]

As far as I know - Dutch BV substance rules require that at least 50 percent of the board consist of Dutch tax resident directors. Otherwise the BV won't be resident in the Netherlands. And since you would be a Portuguese resident, the BV would most likely be resident in Portugal.

Hi Jerry, the advisor also told me I needed to have a person who stayed in the Netherlands as shareholder/director I think this was the reason im not clear.

 

[Mr Gus]

Why setup a Dutch company when you move to Portugal and at the same the register yourself as a freelancer in Portugal?

 

[Martin Everson]

I would cut all ties with home country in first instance.

Will that Netherlands company even meet Netherlands substance requirements to be considered tax resident there. See below post.

https://www.offshorecorptalk.com/threads/eu-asset-protection.27916/post-118141

I would like to move to Portugal and live a more rural quiet life. I have a wife and a kid (1.5 yr old)

Moving when your kid is 11.5 is not good for a young child. You may want to think longer perhaps.

 

[treasureinyou]

One thing, I'm not sure you can be NHR and freelance at the same time.

And if you start by being freelance you won't be able to become NHR afterward (my understanding not legal advice)

 

[GPT]

As far as I know - Dutch BV substance rules require that at least 50 percent of the board consist of Dutch tax resident directors. Otherwise the BV won't be resident in the Netherlands. And since you would be a Portuguese resident, the BV would most likely be resident in Portugal.

This is theoretically true. In practice I’ve experienced that the Dutch tax authorities are all to happy to lay a claim on the corporation tax.

The main reason however should not be the tax perspective but the bank account. For as long as you live and work in NL your bank won’t be the problem. The moment you move your a*s abroad -depending on the bank- your bank closes your account.

ABN / Rabobank are two examples that kick you out in the blink of an eye. ING is your best chance. To be clear. I am not saying they won’t kick you out