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Where Taxpayers and Advisers Meet

Living in Lisbon as a remote worker

Posts: 1
Joined: Wed Jun 19, 2019 10:59 am

Living in Lisbon as a remote worker

Postby LAMD » Wed Jun 19, 2019 11:03 am

My partner and I are looking to move from the UK to Lisbon later this year. We both work for a entirely remote agency, which promotes us working from anywhere we like. Before we broach the subject of living in Lisbon, we want to understand what it will mean from a tax perspective for us both and whether it'll be worth us moving, as I understand Portugal's taxes are very high.

The agency we work for is based in the UK and we'll receive UK benefits (such as the same bank holidays off etc...) but we'll be residing in Lisbon and have an apartment. We'll have to pay Lisbon tax as we'll be there for over 183 days - how high are the taxes?

Any help would be much appreciated.


Posts: 332
Joined: Wed Aug 02, 2017 9:09 pm

Re: Living in Lisbon as a remote worker

Postby darthblingbling » Wed Jun 19, 2019 12:12 pm

You'd need specific Portuguese advice, this is a UK forum.

If you're tax resident there then I'd assume you'd be liable to tax on your worldwide income there.

Posts: 32
Joined: Wed Jun 19, 2019 5:04 pm
Location: Manchester

Re: Living in Lisbon as a remote worker

Postby hendersontax » Wed Jun 19, 2019 9:15 pm

And from a UK perspective you'll need to consider your UK tax residence status under the Statutory Residence Test (you can't assume that if you are tax resident in Portugal under Portuguese law then you won't also be resident in the UK - though if you are dual resident then the double tax treaty will offer some protection from double taxation) and whether you will carry out any duties in the UK while based overseas - either of these may trigger a UK tax liability even if you are living in Lisbon and paying Portuguese taxes.

You should really seek professional advice from both a UK and Portuguese tax perspective to ensure you are reporting your income correctly, paying tax in right location and claiming relief where possible. If you are employed (it's not clear from your query) there will also be payroll and possibly insurance issues as a result of working outside the UK for a non-UK employer, which will also need exploring to ensure the employer is compliant - I assume they are aware of the proposed move?
Tom Henderson ATT(Fellow) CTA

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