NHR with Portugal limited liability company

I'm an American considering taking residency in Portugal as an NHR. I have been researching various aspects and ramifications of the NHR regime, and still haven't clarified a couple of issues so thought I would ask and see if anyone here has any guidance.

The first question is whether I would be likely to qualify for the High Value Occupations 20% tax rate for self employed persons as an internet marketing consultant to businesses (US clients only.) It concerns me that this determination will apparently not be made till several months into residency.

I see in the list at https://dre.pt/web/guest/home/-/dre/123 … /maximized
(Google translated)

25 - Specialists in Information and Communication Technologies (ICT)
31 - Technicians and professions in science and engineering, intermediate level
35 - Information and communication technology technicians

But this doesn't make it totally clear to me, although various websites claim that "computer consulting" and "web development" qualify.

It also says:
Workers included in the above-mentioned professional activities must have at least level 4 of qualification of the European Qualifications Framework or level 35 of the International Standard Classification of Education or have five years of duly proven professional experience.

I can't figure out exactly what US education level is equivalent to EQF 4 / ISCED 35. I'm also curious about what "duly proven" entails.

The second question has to do with taxation and business structure.
What I want to clarify is whether I would be able to form a Portuguese single member limited liability company, which seems to exist as a pass-through entity for taxation similar to a US LLC, and still a.) qualify for the 20% NHR income tax treatment, b.) still pay around 21% in social security, and c.) still qualify for the social security tax cap of around (EUR)14K/yr?

(Apparently the Portuguese equivalent of a C corp imposes social security taxes on board members and directors on all of their income with no cap.)

The third question seems pretty straightforward but I haven't been able to find a clear answer: All of my clients are in the US, so would I have to pay VAT on these contracts?

Thanks for any information.

Hi JohnSmith,

1. Your professional activity must be well-defined in this context to be eligible for this NHR status benefit. You can achieve this through a declaration from the companies you do business in US for that you have an activity that can fit the requirements set out here.

Note that: Internet marketing can be fit into business strategy and not as IT specialist...

2431 specialists in advertising and marketing (not classified as high value activity...)
but
251 ITC specialists (classified as a high value activity),...


List of Portuguese Value-Added Activities (2020) & European Qualifications Framework (EQF):

https://www.expat.com/forum/viewtopic.p … 43#5166250
(Post #8)


2.  Forms of Business Entities

https://www.expat.com/forum/viewtopic.p … 43#5166256
(Post #9)


3. VAT

Selling services to customers outside the EU:

If you provide services to customers outside the EU, you usually do not charge VAT. However, if the service is used in another EU country, that country can decide to charge the VAT.

You may still deduct the VAT that you paid on related expenses, such as for goods or services purchased specifically to make those sales.

https://europa.eu/youreurope/business/t … services-1

___

Consulting services provided by a taxable person in Portugal to a taxable person outside the EU (e.g. UK, USA) will continue to fall under the general rule in Article 6(6)(a) of the CIVA, under which such services are located and taxable in the country of the person who acquired the service.

As a result, the taxpayer in Portugal will continue to issue invoices without VAT and stating "VAT/ IVA - autoliquidação".

Information on VAT (IVA) from the AT Portuguese Tax Authority:

Código do imposto sobre o valor acrescentado (IVA)
https://info.portaldasfinancas.gov.pt/p … ndice.aspx


Kind Regards

Marketing consultant is not on the high value added activities - the code for a marketing executive is 2431 - look up cpp2010.  At least do not describe yourself as such

Hasn't that already been said in my previous post ?.....  :/

right