Get personalized advice about tax, asset protection, offshore banking, residency, and citizenships: https://calendly.com/michael-rosmer?month=2021-03
You can visit our websites for more information about us: https://offshorecitizen.net & https://www.offshorecapitalist.com
Today we’re sharing a little-known but fantastic tax strategy for digital nomads, freelancers, sole traders, etc. who are interested in moving to Portugal.
Many foreigners moving to Portugal take advantage of their famous NHR program, where they don’t pay taxes on their foreign income for up to 10 years. However, if you have earned income from the work that you do this will not be so good for you.
On top of the high tax rates, you need to worry about social contributions that are also quite high in Portugal.
So what is the solution for you?
There is something called ”The simplified regime for sole traders”.
If you don’t have lots of fixed expenses, meaning that the majority of your income is your profit this can work well for you. This option will not work for someone who runs a dropshipping business for example. It will be great for someone who’s a consultant, web developer, etc.
As long as you make less than 200 000 euros per year, you could pay tax only on 35% of your overall income.
So for example, if you make 100 000 euros per year, you can pay taxes only on 35 000 euros. This is a massive tax saving!
It even gets better than this. During your first year of residency in Portugal, you will get a 50% tax discount on that rate, and in your second year you will get a 25% discount.
If you’re a digital nomad and interested in moving to Portugal this might be an amazing option for you to pay less tax.
Who are we and what do we do?
We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.
We have lots of interesting articles on different topics, we have relevant information up to date.
Author: Michael Rosmer
Feel free to join our community!
Don’t forget to subscribe to our channel