NHR and dividends

john629 · 2021-09-11T12:40:16+02:00

Explore insights on NHR and dividend taxation for UK businesses in Lisbon. Get clarity on tax implications and share experiences with fellow entrepreneurs.

john629 New member

Member since 11 September 2021

john629New member11 September 2021 10:40:16

Hi all,
We would love to emigrate to Lisbon but we鈥檙e a bit confused about the tax situation. We run a small recruitment company from home and pay ourselves mostly in dividends. We anticipate maintaining the company in UK and paying corporation tax there, but running it from Portugal and paying ourselves dividends tax free鈥�? Am I understanding that correctly and does anyone else have a similar situation?

Many thanks!
John

TonyJ1 Contributor

Member since 25 March 2014

TonyJ1Contributor13 September 2021 11:42:00

162

You have to take care on the management and control aspect - basically if you run a foreign company in Portugal, could be deemed that the company has a permanent establishment (aka branch) in Portugal. Branches are taxable.

There are some basics rules that you should be aware to avoid falling into - you should research the basics / fundamentals

john629 New member

Member since 11 September 2021

john629New member13 September 2021 12:05:14

Thanks Tony,
Have booked in a call with a tax expert on this,
KR
John

canadaportugalvisa22 Active member

Member since 28 June 2020

canadaportugalvisa22Active member01 January 2022 18:06:34

Hi John,

Did you learn anything on your call?

I'm also self-employed, running an online business where I earn income. By simply living in Portugal while running that business, is that income taxable by Portugal?

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TonyJ1 Contributor

Member since 25 March 2014

TonyJ1Contributor03 January 2022 12:55:45

162

canadaportugalvisa22 wrote:
Hi John,

Did you learn anything on your call?

I'm also self-employed, running an online business where I earn income. By simply living in Portugal while running that business, is that income taxable by Portugal?

Yes - unless incorporated - and even then - there would be management and control issues - essetially making it taxable in Portugal, though, maybe, possible to avoid this.