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Do you have an example? Because last time I looked into NHR it didn't seem very attractive. If I remember correctly you paid around 30% in social security and 2
by olie 9y ago
Do you have an example? Because last time I looked into NHR it didn't seem very attractive. If I remember correctly you paid around 30% in social security and 25% income tax, but the income tax is flat. So the overall tax savings didn't seem that great since you had to make quite a lot to reach a similar effective tax and even more to save any significant amount. Could still be decent if the cost of rent and living is low of course.
But I might be mistaken, so any comment would be appreciated.
- corford 9y agoNHR has many facets to it (one of which is, as you mentioned, the 20% flat income tax for qualifying professionals). The most interesting bit of NHR (from a tech expat working remotely PoV) is the tax free foreign income. Providing your clients are not in Portugal (so you don't brush up against CFC rules) there's nothing wrong with incorporating your consultancy in the UK or Malta and then paying yourself in dividends.