Working remotely for US company as portuguese citizen

[NeoFreyr]

Hello everybody, excited to be part of the community.

I'm a Portuguese citizen working for a US company (for which I also hold shares). My income is right now 105k USD but expected to increase throughout time. My current setup is a sole proprietorship company in Portugal and I'm paying myself a low salary while keeping the money on the company, but I'm still losing tons of money on being taxed both personally and on my company, and dividends for Portuguese citizens go to 28% which is ridiculous.

Looking into incorporating elsewhere (ideally in Europe because I might need to come to Portugal somewhat regularly since I have family here). I looked into Cyprus, Malta and Andorra (which would be the best for me because it's close to Spain, France and I can get a cheap fast plane to Portugal whenever). I also don't oppose to Dubai, but it's as close as I'd want it.

I'm not opposed to paying taxes, I'm opposed to being robbed, so low taxation countries would work.

Appreciate your time and ideas if you have any. Looking forward to help this community as much as it's been helping me.

PS: I'm looking into getting a tax attorney but I'm trying to research the best I can so I can at least not seem stupid...

Edit: worth saying I have double citizenship by birth right. Portuguese and Brazilian.

 

[Larin]

You pay tax where you live. From your post is it not entirely clear if you are willing to relocate, or are just looking for a place to incorporate a company. If it is the latter then you will not find an easy solution since you will continue to be a Portuguese tax resident, subject to pretty much the same level of taxation as you are now.

 

[NeoFreyr]

You pay tax where you live. From your post is it not entirely clear if you are willing to relocate, or are just looking for a place to incorporate a company. If it is the latter then you will not find an easy solution since you will continue to be a Portuguese tax resident, subject to pretty much the same level of taxation as you are now.

Sorry for not making it clear. What I meant is that I’m willing to relocate/move my tax residency to another country, but for no longer than required, ideally. For example, if I were to relocate to Cyprus I could stay there for 6 months (enough to make me a tax resident there) and then spend 4 months in Portugal and 2 traveling wherever.

 

[Larin]

I suggest you have a look at the PwC tax summaries for the countries you are considering: Worldwide Tax Summaries Online

Cyprus tax residency for example can be achieved with only a 60 day stay (provided some other conditions are satisfied).

Where you ultimately reside will be a personal choice. Could you see yourself living on a small island, or in the middle of a desert, or in a corrupt country in Eastern Europe? I'd visit a few places you are considering and see how you get along there.

In any case, wherever you relocate to, make sure you sever your ties to Portugal (de-register from the local authority, let IRS know that you are no longer a tax resident, etc.)