Portugal TAX and NHR

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Portugal TAX and NHR


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Old 8th October 2020, 09:41 AM
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Smile Portugal TAX and NHR

Hi all, Iím in the process moving to Portugal from UK

I have a few questions regarding becoming tax resident which is quite important and really appreciated if anyone can help out!

My job is based in the UK and all tax and National insurance is deducted at source in UK, I wonít have any income from Portugal, so do I need to pay any Social security contribution in Portugal? I also intend to sign up NHR, will that make any difference on Social security contribution?

Many thanks

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Old 8th October 2020, 02:52 PM
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Welcome to forum.

First try using search function, as this was asked before and there is loads info about moving to PT.
NHR covers tax liabilities, not social security. Your liability is going to depend on many things, like are you on PAYE or contractor. Also, is your employer OK with this idea.

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Old 8th October 2020, 07:04 PM
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Quote:
Originally Posted by proud.to.be.EUROPEAN View Post
Welcome to forum.

First try using search function, as this was asked before and there is loads info about moving to PT.
NHR covers tax liabilities, not social security. Your liability is going to depend on many things, like are you on PAYE or contractor. Also, is your employer OK with this idea.
Thanks, Iím new to the site, will do some more research. Since you are here, Regarding what you mentioned, yes, I will stay on PAYE in UK, itís only just my physical location shift from one country to another, I will still be paying NI in the UK. Do I still need to pay any Social security contribution in Portugal with or without NHR? Thanks!

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Old 9th October 2020, 05:36 PM
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Quote:
Originally Posted by Lisbonfan View Post
Hi all, Iím in the process moving to Portugal from UK

I have a few questions regarding becoming tax resident which is quite important and really appreciated if anyone can help out!

My job is based in the UK and all tax and National insurance is deducted at source in UK, I wonít have any income from Portugal, so do I need to pay any Social security contribution in Portugal? I also intend to sign up NHR, will that make any difference on Social security contribution?

Many thanks
Hi
In the interests of clarity Will you be a Resident of Portugal or the UK?
Will you be a Tax Resident of Portugal or the UK?

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Old 10th October 2020, 12:07 AM
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Originally Posted by Strontium View Post
Quote:
Originally Posted by Lisbonfan View Post
Hi all, I’m in the process moving to Portugal from UK

I have a few questions regarding becoming tax resident which is quite important and really appreciated if anyone can help out!

My job is based in the UK and all tax and National insurance is deducted at source in UK, I won’t have any income from Portugal, so do I need to pay any Social security contribution in Portugal? I also intend to sign up NHR, will that make any difference on Social security contribution?

Many thanks
Hi
In the interests of clarity Will you be a Resident of Portugal or the UK?
Will you be a Tax Resident of Portugal or the UK?
Will live most time in Portugal, in terms being tax resident, I will be tax resident in both countries, but based on the double tax treaty, I believe I only need to pay tax once at source country. Any thoughts on paying social security in Portugal for my case?

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Old 10th October 2020, 09:06 AM
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Quote:
Originally Posted by Lisbonfan View Post
Will live most time in Portugal, in terms being tax resident, I will be tax resident in both countries, but based on the double tax treaty, I believe I only need to pay tax once at source country. Any thoughts on paying social security in Portugal for my case?
I'd suggest you initially have a discussion with your employer and HMRC and explain being a resident in two places.
Apart from that I don't want to say anything.

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Old 12th October 2020, 11:56 AM
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Social security payments are mainly matter for employer.
If you were self employed, you would need to make SS payments, which doesn't apply to you.
UK and PT have SS exchange agreement, but not sure how that works with payroll.
https://www.justlanded.com/english/P...ocial-Security
https://www.pwc.pt/en/pwcinforfisco/...-security.html

Key things are that you declare earnings from UK and pay any tax difference due to PT.
Make sure your employer has no objections for you working from outside UK, data protections and many other legal issues can arise from 1st Jan. Some employer might reduce your wage, as they might operate geo-location pay scale. However, some employer wont care where you work from.

Everything above is personal opinion and you should always double check facts.

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Old 12th October 2020, 12:11 PM
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Quote:
Originally Posted by proud.to.be.EUROPEAN View Post
Social security payments are mainly matter for employer.
If you were self employed, you would need to make SS payments, which doesn't apply to you.


Key things are that you declare earnings from UK and pay any tax difference due to PT.
Make sure your employer has no objections for you working from outside UK, data protections and many other legal issues can arise from 1st Jan. Some employer might reduce your wage, as they might operate geo-location pay scale. However, some employer wont care where you work from.

Everything above is personal opinion and you should always double check facts.
Thanks! I am going to apply for NHR, hopefully that will stop me being double taxed on both income tax and social security payment?

I am a travel salesman, I have always being operating from different countries, the employer side is least of my concern.

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