Hello,
I have started working just over half the time for my UK employer at home in Portugal. My employer did an assessment and determined that in these circumstances I would still pay UK PAYE (which is clear from the tax treaty between the two countries) and I am still paying national insurance in the UK. So, so far, no change.
I am intending to register as a non-habitual resident. My question is about the tax exemption:
"3.1 Income derived from employment (category A) is exempt from any taxation in Portugal if:
a) It is taxed in the country from which it derives, according to the double taxation agreement in force between that country and Portugal or, in the lack thereof, according to the OECD Model Tax Convention."
and whether it applies. It seems to because the income is taxable (and will have been taxed) in the UK under the tax treaty. Anyway, has anyone seen this situation before and, if so, can confirm (or otherwise!) that I will have no additional tax liability in Portugal?
Same question for national insurance / social security.
Thanks in advance for any help,
John
Expat Health Insurance
Cigna Global Health Insurance
Moving your family abroad can be intimidating, but learning about medical options such as family health insurance early on can help you successfully settle in.
Limited-time offer: 10%* off for life!
Get covered today and enjoy 10%* off your health insurance policy!
*T&Cs apply
Moving Internationally?
International Movers. Get Quotes. Compare Prices.
Sirelo has a network of more than 500 international removal companies that can move your furniture and possessions to your new home. By filling in a form, you’ll get up to 5 quotes from recommended movers. This service is free of charge and will help you select an international moving company that suits your needs and budget.
Get your free no-obligation quotes from select removal companies now!
Hi John,
Considering the double-tax agreement between the UK and Portugal, it looks like you have no additional liability.
For your social security, you should apply for an A1 form, which you can be done through the UK government website. The A1 form allows you to continue paying UK social security without being obliged to pay for Portuguese social security.
That being said, you should definitely consult a tax expert to make sure.
-Kyle