Portugal tax resident under NHR + US LLC
- Thread starter Speedrunner
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Agree with Marzio. I don't know any case or anyone that have been exposed by tax authorities. It doesn't mean that the setup is right because is not. And the ruling that is in freshportugal webpage talks about a multi member LLC not a c-corp or a single membership.
In my case I think that the smartest thing to do is to have a low profile. Self employee with low invoicing and the rest in dividends from cyprus (ideal setup with NHR)
In my case I think that the smartest thing to do is to have a low profile. Self employee with low invoicing and the rest in dividends from cyprus (ideal setup with NHR)
Yes, for example, you can set up a company for consulting services.
In this example,︂ if your net profit after closing the books is 100,000 €, you would pay 12.5%︃ corporate tax, leaving 87,500 €available for dividends. These dividends would be tax-free under the NHR︄ regime and can be transferred to your CAIXA GERAL account.
Another option is to use︅ the LLC, transferring 50,000 € to your LLC via invoices and spending from there or︆ moving funds to the crypto world through a corporate account (such as Kraken, for example).︇ The other 50,000 € would be subject to Cypriot corporate tax, meaning instead of paying︈ 12,500 in tax, you would pay only 6,250.
- Ideally, this company would have a nominee shareholder, director, and secretary (all provided by a law firm).
- You would then obtain a VAT number, allowing you to invoice other companies within the EU (that are also in the VIES) without charging VAT.
- You would issue an invoice to the Cypriot company for €2,000 (paying 20% in personal income tax flat fee and 21.4% on 70% of the €2,000 for social security in portugal because you don't live by air), while invoicing your clients for an additional 5,000 €, 10,000 €, or whatever amount, which would be paid to your Cypriot company.
- Then, you can issue an invoice from︀ your LLC to your Cypriot company to reduce the corporate tax on that amount (bringing︁ it down by 12.5%). The remaining profits can be distributed as dividends.
In this example,︂ if your net profit after closing the books is 100,000 €, you would pay 12.5%︃ corporate tax, leaving 87,500 €available for dividends. These dividends would be tax-free under the NHR︄ regime and can be transferred to your CAIXA GERAL account.
Another option is to use︅ the LLC, transferring 50,000 € to your LLC via invoices and spending from there or︆ moving funds to the crypto world through a corporate account (such as Kraken, for example).︇ The other 50,000 € would be subject to Cypriot corporate tax, meaning instead of paying︈ 12,500 in tax, you would pay only 6,250.
It will be tax evasion.
Tax planning will be reached if following will be reached:
1. Portugal Tax Haven Blacklist.
2. Foreign Companies from where dividend comes have effective tax on dividends.
3. Central management and control will not be in Portugal.
After considering all this, tax can be planned.
Tax planning will be reached if following will be reached:
1. Portugal Tax Haven Blacklist.
2. Foreign Companies from where dividend comes have effective tax on dividends.
3. Central management and control will not be in Portugal.
After considering all this, tax can be planned.
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