D7 and remote work (employee)

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  • #18521 Reply

    Hi. We are hoping to relocate to Portugal in a few years on a D7 visa (from the UK). Am I right in understanding that I can continue working remotely for my current UK employer, and they don’t need to set up as a Portuguese entity or anything like that? They would just pay me into my Portuguese bank account and I pay the appropriate local Portuguese taxes (possibly under NHR)? Is that right or am I missing something on how the D7 works for remote workers?

    I understand I would be exempt from continuing to pay UK taxes under the double taxation agreement too? Thank you

    #18526 Reply
    James Cave

    Hi Andy,

    In theory, yes: you have a remote income and they do not need to open a Portuguese branch. There are lots of people living in Portugal and working for a company that way.

    It does depend a little on the company you’re working for, though. Some have no problems with this setup, while other companies worry about tax and HR issues on their part. I would make sure the company is okay with it first, as that can often be the biggest stumbling block.

    Yes, you would normally pay taxes and social security here. It’s not always black and white, but that’s the general idea.

    #18539 Reply

    Thanks James, that’s really helpful.

    I have been reading up about the social security requirements in Portugal and it looks as though usually the employer is responsible for making a contribution (23% I think) and the employee makes a contribution too (11% maybe). Do you know how this works with remote work? Am I as the employee responsible for making the social security payments myself as part of annual tax return process? Am I responsible for paying the full amount (23% + 11%)? I’m hoping that, since it’s a remote income and I’m not technically employed in Portugal, the 23% is not applicable? I’ll definitely be seeking independent financial advice nearer the time but just trying to work out if Portugal is a viable option. Thanks again!

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