# Social security liability on UK company dividends



## djohnmarlowm (May 18, 2014)

Hi all
I wonder if anyone knows anything about whether dividends paid to company directors from UK companies would be subject to social security in Portugal, for residents under the NHR scheme?
I understand that dividends would be tax free under NHR, but what about social security?
thanks in advance
John


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## canoeman (Mar 3, 2011)

The short answer is no
"This regime also allows that a tax exemption apply to the foreign-source income received by the individual, if certain conditions are met (namely, if the referred income is subject to tax on its country source)" so if it's not earned income in Portugal it's not subject to Social Security payments.

You really need to take professional advice from a good accountant in Portugal preferably one that is also conversant with UK Tax Law as under this scheme HMRC will consider you a UK "tax resident" which might have further implications, afraid both countries need looking at carefully


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## robc (Jul 17, 2008)

As canoe points out you will need specialist advice on this issue, for example..............
Dividends are declared and not earnt and so potentially are exempted from the NHR scheme. 

I would recommend advice in the UK and also Portugal

Rob


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## djohnmarlowm (May 18, 2014)

thank, both


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