Optimize tax income

[mrportuguese]

Hello, I live in a very good tax country for expats (Portugal) but I'm not an expat I'm a f*****g citizen born and raised.

I earn 53k anually from my company, and the company pays in fact 67k to give me that gross salary (due to company social security taxes).

In the end I get 37k net a year which is around 55% tax.
I'm tired of being exploited I need your help.

I'm thinking on asking for the same 65k as a freelance and move elsewhere with somekind of "virtual" residence. I'd pay for a small apartment and I'll go regularly there as vacations 4, or 5 times a year and try to get residency in that place to pay low taxes.

My company is an EU company (based in Portugal).

What would you do in my case? Which country? Which strategy?

Thank you

 

[CyprusLawyer101]

If you move to Cyprus as a non dom and being employed by the same employer in Portugal you could even achieve 0% tax on that income provided you spend at least 90 days abroad for the purpose of exersizing your employment.

 

[joffreylol]

If you move to Cyprus as a non dom and being employed by the same employer in Portugal you could even achieve 0% tax on that income provided you spend at least 90 days abroad for the purpose of exersizing your employment.

How does that work, is it for EU residents/nationals only? Thanks

 

[CyprusLawyer101]

How does that work, is it for EU residents/nationals only? Thanks

There are quite a few migration optiona that could also get a third countey national here. So no its not only for EU persons and the tax rule can still apply.
I can PM you if you need more info.

 

[joffreylol]

There are quite a few migration optiona that could also get a third countey national here. So no its not only for EU persons and the tax rule can still apply.
I can PM you if you need more info.

Sounds good, feel free to message me.

 

[AndyAresa]

If you move to Cyprus as a non dom and being employed by the same employer in Portugal you could even achieve 0% tax on that income provided you spend at least 90 days abroad for the purpose of exersizing your employment.

Thank you CyprusLawyer101. When you refer to 0% tax on that income, do you mean all the income in that year, or only the income received in the periods when a person is outside of Cyprus? It would seem that if a person is earning the income from a foreign employer while being in Cyprus, such income should probably be taxable in Cyprus. Or am I getting this wrong and the entire annual non-Cyprus employment income shall be tax free in Cyprus even though a person may spend several months in Cyprus during that year?

 

[CyprusLaw]

Thank you CyprusLawyer101. When you refer to 0% tax on that income, do you mean all the income in that year, or only the income received in the periods when a person is outside of Cyprus? It would seem that if a person is earning the income from a foreign employer while being in Cyprus, such income should probably be taxable in Cyprus. Or am I getting this wrong and the entire annual non-Cyprus employment income shall be tax free in Cyprus even though a person may spend several months in Cyprus during that year?

The way it works is that there is 100% exemption on remuneration for salaried services rendered outside Cyprus for more than 90 days in a tax year to a non-Cyprus resident employer.

 

[AndyAresa]

The way it works is that there is 100% exemption on remuneration for salaried services rendered outside Cyprus for more than 90 days in a tax year to a non-Cyprus resident employer.

Thanks. So applying this rule to an actual calculation: E.g. a person is a remote employee of a non-Cyprus employer from 1 Jan till 31 Dec 2022, with a 5,000 Euro monthly salary. In 2022 the person works outside of Cyprus for 4 months and works from Cyprus for 8 months. So his income of 20,000 Euro earned during the 4 months outside of Cyprus is 100% exempt from income tax, while 40,000 Euro earned in the 8 months he was in Cyprus are taxed in Cyprus, right?