# Uk based ltd company director wishing to move to Portugal.



## Markb1985 (2 mo ago)

Afternoon all.

I was hoping for some guidance about a move to Portugal now we are not in in the EU. I’ve been told by a Portuguese tax expert I would pay 20% on the salary I pay myself from uk salary and 0%on any dividends.

what tax would I be liable for in the uk if I have no intention to be in the uk more than 89 days.
My company would still be registered in the uk so I guess I would still need to pay corporation tax.

many help would be appreciated.
Cheers


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## Moulard (Feb 3, 2017)

The general principal is that income is primarily taxed where it is sourced.

So if your company is a UK tax resident then its global income will be UK taxable.

If you are paying yourself a dividend, then dividends are typically sourced where the company is located, so that too will be considered UK sourced and UK taxable.

If your company is paying you a wage, then your income is sourced where the work is performed, and thus will be Portugal sourced.

I don't know Portuguese tax law, nor the UK-Portugal tax treaty, but I would expect that under the tax laws of Portugal you would report your global income to its tax authorities and then be able to claim some for of tax credit, rebate or deduction for UK taxes paid.

Do note though that most tax treaties cap the benefits to the amount of tax owed, so you generally will end up owing the higher of the two tax rates for income that is subject to the double taxation minimisation clauses.

I will leave it to someone more familiar with UK-Portugal tax affairs than I to go into the details


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