Portugal NHR first local activity then offshore coporate

[bandanna]

Hello, I’m interested to move to Portugal. A local accountant explained that the first year is highly beneficial, as no social security payment applied and income taxes could be reduced to 7.5%-15% depend on various cases.

But then I asked if I can operate first year from a business activity in Portugal and 2nd year start receiving dividends from an offshore corp. He said this is not recommended and I’m still struggling to answer - why?

Any thoughts about this setup, what makes such switch after the he first year risky actually?

 

[JustAnotherNomad]

what makes such switch after the he first year risky actually?

Think about it - the first year you tell them you are working from PT, then the next year, suddenly everything has changed? And it just so happens to be beneficial to you from a tax perspective?
If I was a tax inspector, I might start digging a little deeper and questioning your NHR arrangement... And NHR is already such a grey zone that you really don't want anyone taking a closer look at all those "offshore" companies.
Do what the accountant says, he knows best.