Bruno Alfonso of Taxes in Portugal bruno@taxesinportugal.com
- When it comes to social security contributions, social security is collected in the country of residence. Company is legally required to employ from Portugal (by registering in Portugal) or hire an employee of record to do Portuguese payroll.
- For now, Portugal is not enforcing the law requiring social security to be paid in Portugal, but that may change. He has helped many people who work for US companies and pay social security only in the US.
- Social security liability is on both the employee and employer.
- NHR can give a flat tax rate of 20% for IT professions for 10 years
- He thinks I will qualify
- Get visa, get residency, send NIF number at which point I become a tax resident. Then I can apply for NHR.
- Will need to register self-employed in Portugal to continue contracting
- IRAs only subjected to tax in Portugal when you withdraw.
- ROTH is not recognized by Portugal and is subject to tax on withdrawal in Portugal
- While on NHR, 10% on withdrawals. After NHR, it will be normal progressive up to 48% at the moment
- Different set of rules for self-employed
- Rental income and sale proceed are exempt from tax in Portugal if on NHR
- File annual tax return in Portugal
- Filing starts in April and goes to end of June
- File for extension in US, file in Portugal, after that is done, offset US taxes with taxes already paid in Portugal.
- Self-employment requires regular monthly work
- Contact Bruno when I have the SEF appointment to start NHR application process
- Email any questions I think of to Bruno