Tax Implications for Digital Marketing Business Under Portugal's NHR

jcarlos7711 Member

Member since 11 November 2014

jcarlos7711Member18 July 2023 20:50:26

Hello everyone,

My name is Juan, originally from Spain but currently living in Mexico. I am contemplating a move to Portugal and would appreciate some insights from this knowledgeable community.

I am an entrepreneur with a primary focus on digital and affiliate marketing. My clients are globally spread and all revenue is received through a recently established LLC in the United States. One potential opportunity I am keen on exploring is the Non-Habitual Resident (NHR) scheme in Portugal.

I am trying to figure out if the income my LLC receives from affiliate marketing can be received by me as a physical person (as dividends or distribution) in Portugal, under the NHR scheme. Furthermore, I would like to understand the tax implications of this scenario - can I potentially pay a 0% tax rate or some lower rate on this income?

I'm hoping someone here has some experience with a similar situation or can point me in the direction of resources that could clarify this for me. Any input is greatly appreciated.

Thanks in advance for your help!

Best regards,

Juan

boutdechou39 Contributor

Member since 15 March 2023

boutdechou39Contributor19 July 2023 06:27:21

115

Hi Juan

the best advise I can give you : do not ask a forum after tax rules and implication ruling your life and behavior!

You can ask for any name or recommendation for a professional tax lawyer but ask them that question, not a forum.

And by the way, NHR scheme in Portugal is now 10% but is only valid for retirement pensions, not for wages

JohnnyPT Portugal Expert

Member since 23 May 2020

JohnnyPTPortugal Expert19 July 2023 09:09:31

4712

Hi Juan, Welcome.

The Portuguese Non-Habitual Residents Tax Regime

/forum/viewtopic.php?id=911492

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@boutdechou39,

NHR scheme in Portugal is not only valid for retirement pensions.

If a profession falls under the list of value-added professions (list inside link above) you have all the advantages of applying for this status, because it has tax benefits:

Tax Benefits:

- Flat rate of 20% for income from dependent work (category A) and independent work (category B) obtained in Portugal, derived from high added value activities.

- Employment income obtained outside Portugal is not subject to taxation in Portugal if taxed in the country of origin;

- Self employment income, obtained outside Portugal, derived from a high added value activity, is not subject to taxation in Portugal, provided that the income may be taxed in the country of origin under a tax agreement signed between Portugal and the source income country

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