Working remotely

16POSTS

5 years ago

Hi All,

I'm planning to move to the Algarve in September and toying with the idea of working remotely for a UK company. I've been reading some information but the more I read the more confusing it gets.
Has anyone got any experience of working remotely whilst living in Portugal? The tax situation and residency, visa etc.
Any information would be great!

Thank you

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zsheffield Member

16POSTS

5 years ago

Hi Johnny,

Thank you for your reply. My UK employer has agreed to continue employing me and keep paying me my salary when I relocate to Portugal later this year.
I have been reading and believe the best Visa for me will be the D7 visa as my salary will be my passive income. Is that correct?
I wouldn't be a nomad as such as I will only be based in Portugal and will be applying for residence with the plan of staying there for the future with my partner who is Portuguese.

Do you know much about the NHR? My occupation is payroll and accounts administrator so I'm not sure that will be classed as one of the occupations they accept?
If not, do you know where I can find out if I will have to pay tax on my salary there in Portugal and how I go about paying it? Will I need to full in tax return at the end of the year?

1 member reacted to this post

TonyJ1 Contributor

164POSTS

5 years ago

Yes - you will be subject to Portuguese income tax - see article 15 of the Portugal / UK double tax treaty. Also request a no tax code from HMRC (or else claim the tax on the annual tax return)

JohnnyPT Portugal Expert

5405POSTS

5 years ago

Hi Zsheffield,

D7 is a good option for you.

After 5 years of residence, you can also apply for Portuguese citizenship. But if you are married to a Portuguese, it is easier. Find out more here:

https://www.expat.com/forum/viewtopic.php?id=915197

It seems to me that your profession is not in the list of high value added activities, and as such, you cannot enjoy a flat rate of 20%.
___

Employment income obtained in Portugal in high value added activities is taxed at a flat rate of 20% on the gross value:

https://www.expat.com/forum/viewtopic.p … 92#5109048
(Post #8)
___

If you receive any incomes from outside Portugal:
Portugal has signed agreements with dozens of other states to avoid double taxation, including UK.

If you are classed as a tax resident in Portugal, your worldwide income is subject to Portuguese income tax.

https://www.expatica.com/pt/finance/tax … al-105742/

As a general rule, an individual shall be qualified as tax resident of Portugal if, during the year to which the income concern:
a) he is present in Portugal for more than 183 days, consecutive or otherwise, in any 12-month period starting or ending in the calendar year concerned;

b) he is Portugal for a shorter period, but he has, on any day during the period mentioned in the previous subparagraph, an home under circumstances which imply his intention to keep and occupy such abode as his permanent residence; ...

(PDF doc in english)

https://www.google.com/url?sa=t&sou … CTCk532Zfw

zsheffield Member

16POSTS

5 years ago

That's great, thank you both so much for your replies!

LeeCP New member

3POSTS

5 years ago

I'm hoping to do the same thing, and actually do a similar job to you. However, unfortunately my line manager rejected my proposal to work fully remotely in exchange for reducing my salary.

If you don't mind me asking what sort of company do you work for? I'm currently job hunting for a role I can do remotely so I can then move to Portugal but am not having much success so far.

zsheffield Member

16POSTS

5 years ago

I work for a metal fabrications company. I've been very lucky as I also thought my request would be rejected too!
You could try some recruitment agencies. When I was recently visiting the Algarve I was speaking to another expat and they mentioned a recruitment company their friend owns and help people get work remotely. It's called JGA recruitment I think.

Best if luck in finding something!

zsheffield Member

16POSTS

5 years ago

Although it seems JGA recruitment is just for payroll and HR jobs!

LeeCP New member

3POSTS

5 years ago

#10

That's really helpful and sounds like the sort of recruitment agency I'm looking for. I'll be sure to check out them out.

Thanks a lot, and good luck with your move!

NicoleSam Member

1POSTS

4 years ago

#11

What kind of work can you do working remotely from the UK? I am interested! I have about 10 years experience as a teacher but want to leave teaching.

SteveNeedsHelp Member

2POSTS

4 years ago

#12

Tony, you seem to have some good insights! I work for a UK company and receive a salary but I now live in Portugal and have the NHR.

I don't want to disrupt my UK employer and ideally wouldn't change anything.

Two scenarios I see:
1) work in UK >30 days a and use my UK house, claim still a UK resident - pay tax and nothing changes. 2) apply for the no-tax code with the HMRC, use my tax free salary to pay my Portguese tax every year and hope my employer has no issues with that (but concerns regarding social security etc.)

Any thoughts on keeping a UK salaries job but living in Portugal and benefiting from NHR 20%?

Thanks!

SteveNeedsHelp Member

2POSTS

4 years ago

#13

Hi ZSheffield! Out of interest - how is your UK employer going to keep you on the payrole? Did it all work out and any recommendations?

Trying to minimize the disruption to my employer...

Thanks

TonyJ1 Contributor

164POSTS

4 years ago

#14

SteveNeedsHelp wrote:
Tony, you seem to have some good insights! I work for a UK company and receive a salary but I now live in Portugal and have the NHR.

I don't want to disrupt my UK employer and ideally wouldn't change anything.

Two scenarios I see:
1) work in UK >30 days a and use my UK house, claim still a UK resident - pay tax and nothing changes. 2) apply for the no-tax code with the HMRC, use my tax free salary to pay my Portguese tax every year and hope my employer has no issues with that (but concerns regarding social security etc.)

Any thoughts on keeping a UK salaries job but living in Portugal and benefiting from NHR 20%?

Thanks!

In terms of the nhr, for your UK salary to be tax free in Portugal, it has to incur some effective tax in the UK - due to your personal allowance, unless your salary is above the minimum allowance, spending 30 days in the UK will not cut it. ie if your salary is say only £5000, as this is below the threshold, there would be no effective valid taxation in the UK in terms of the double tax agreement (there are some exceptions to this eg pilots). Note, that if all the work is done remotely ie 100% of the time in Portugal, then it will be subject to tax in Portugal - then the provision of the nhr may come into play - ie'high value added professions' - but in this case, subject to 20% taxes, else according to tax tables

Of course you can claim to be tax resident in the UK - but then you are wasting the provisions of the nhr, and propably run the risk of paying taxes in both countries - in other words, get into a real muddle.

Personally I don't think keeping your home as a base would work - HMRC could argue that your centre of vital interest was still in the UK - see the article (article 4). If you rented your home and broke your UK vital interests - eg your family / pets etc moved to Portugal, then that should work.

If you apply for the NT tax code, the employer will be advise ie the NT code will be sent to your employer. I suppose that you can (and should) advise HMRC that you are no longer resident in the UK - I do not know if they will automatically issue the NT code if not specifically requested. If you have advised HMRC that your residence is in Portugal, and had withholding tax in the UK, then you can (should) submit a UK return and claim that you were non resident - ie apportion your earnings between UK residence and Portuguese residence, and if appropriately completed, HMRC should refund you the overpayments. In the meantime you would have to submit the Portuguese tax return - but if you are liable for UK tax (as noted above - carefull - it has to be effective tax), then there would be no Pportuguese tax liability

1 member reacted to this post

GuestPoster180 Guest

0POSTS

4 years ago

#15

My husband and i own a company and the idea is that we both move over using the D7 which we qualify for but i want to be resident in PT but he doesn’t but does want to spend a lot of time in PT but continue to be a UK citizen and keep a house. I would register for the NHR scheme only. He wants to continue to be a UK citizen and to be seen as such but to be able to come and go between Pt and the UK within the limits. Is this possible using the D7. So my question is can you live in PT with the D7 and still be a UK citizen. One of us needs to have this to be able to run the business.

GuestPoster180 Guest

0POSTS

4 years ago

#16

HI In your scenario 1
1) work in UK >30 days a and use my UK house, claim still a UK resident - pay tax and nothing changes.
Can you stay in PT under this circumstance with a D7?