How does the D7 visa taxation work for remote employees in Portugal?

Answers

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  Diogo Capela

  Lamares, Capela & Associados, Sociedade de Advogados

  April 26, 2022

  One of the advantages that the D7 Visa provides to its holders is, in fact, to enjoy the NHR status in Portugal. In this sense, holders of the status NHR, for a period of ten consecutive years, are entitled: - To the exemption of income obtained abroad from pensions, dependent work, self-employment, capital, property income and real estate capital gains, intellectual or industrial property; - To taxation of income obtained in Portugal at reduced rates in case of high added value activities (e.g. 20% for employment or self-employment income and 28% for capital and real estate income).

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  Barbara Pestana

  PaxLegal Law

  April 22, 2022

  If you haven't paid taxes in Portugal as a tax resident in the last 5 years, you can register as a non-habitual resident and benefit from its benefits for income obtained in Portugal (20%) for dependent and independent professions. As for income earned abroad, we always have to see what the double taxation convention of the country of source refers to, and this requires a detailed analysis and knowledge of the facts.

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  Tiago Gali Macedo

  NEXT/Gali Macedo & Associados

  April 20, 2022

  Please bear in mind that legal residency and tax residency are two different applications, before two different authorities, which can be executed independently and should not be mistaken for one another. The Non-Habitual Residency (NHR) is a tax regime, approved by the Portuguese Tax Authorities, whereas the temporary and permanent legal residencies are approved by the Portuguese Foreigners and Border Services – SEF. Therefore, as one is not dependent or conditioned on the other, you can still become a tax resident in Portugal and benefit from the NHR, as your salary (source of income) is generated outside of Portugal.