Expat Forum For People Moving Overseas And Living Abroad banner

1 - 2 of 2 Posts

·
Registered
Joined
·
9 Posts
Discussion Starter · #1 ·
Hello everybody,

I'm looking at moving to Portugal, attracted by the Non-Habitual Resident scheme. I run an online business which currently makes around €100,000 a year in profit. It may be possible to set the business up in another country and pay myself from there so it counts as foreign income. That needs to be looked into. Regardless, I'm confused about social security payments as these have the potential to swallow a large amount of income.

For example, the information on Just Landed suggests I would have to pay at least 25.4% of my income, which is a large amount of money:

"Self-employed individuals may choose to pay contributions under the mandatory regime (25.4 per cent) or under an enlarged regime (32 per cent). The 25.4 per cent rate is for compulsory cover only (retirement, disability, death and old age, maternity, paternity and adoption) while the 32 per cent rate includes compulsory cover plus ‘professional’ sickness, illness subsidies and other family benefits (calculated on the adopted income basis)."

The bit I don't understand is this:

"These rates apply on a monthly basis on an amount determined by the individual equal to between 1 and 12 times the Portuguese minimum monthly wage (€348.01 in 2002), i.e. 12 x €348.01= €4,176.12."

This seems to be saying that the social security rates are determined by the individual, but it doesn't explain it in any more detail than that. I would be grateful if somebody could please enlighten me on how the social security payment system works in Portugal, because I am mystified.

Thanks,
Andrew
 

·
Registered
Joined
·
3 Posts
I wish I could advise you but I am just trying to start up a business on the Algarve and OMG its a minefield. So easy in UK!! Just to open a business banking account I need to be a resident; register my business; get a business fiscal number. I too read all the information on the "just landed" page surely it cant be as bad as they make out. Lets hope we get some answers.
 
1 - 2 of 2 Posts
Top