This sounds complicated. It sounds as if you will be working mainly in the UK and visiting Portugal.
You need to carefully check Portugal residency requirements. If you are mainly working in the UK and only sometimes working remotely from Portugal then it should be fine to work through your Ltd and tax your earnings in the UK.
If you set up home in Portugal then you will probably end up tax resident in Portugal in which case you would declare your UK income in Portugal as well. They would credit you UK tax.
Generally you are liable for tax for any earnings you have in any country regardless of whether you're resident or not (see tax for non-residents).
For example you work a 3 month contract in the UK but you are resident in Portugal. You will be liable for tax in the UK for UK earnings although you're not resident and you have a tax liability in Portugal for the same earnings. The Portugese authorities will take into account UK tax paid and may possibly not charge you anything but you are obliged to declare.
In summary you are liable for tax in any country you work in however short your stay. You will only be taxable on worldwide income in one country. That is the country deemed to be your residence.
Your residence is generally where your home is, length of stay is only one criteria.
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Previously on "Working Abroad but also having contracting work from the UK"
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Yes it is perfectly possible to have multiple tax residences. I have three. Read the UK Portugal tax treaty. They are fairly simple to understand. Then you can work it out from an informed position and sort out any issues arising as they happen.
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Working Abroad but also having contracting work from the UK
Hi all
Newbie here.
I am looking to move to Portugal in a couple of months to set up a new business in a completely different field to what I currently work in.
from scratch
I have also just secured some part time contracting work in my old field, which is remote, so I could do it in another country.
This would help at least cover my rent whilst the business is being set up.
Now, I believe that if I was just visiting Portugal (Pt) (less than 3 mths at a time) then I could do the remote working for the UK, in Pt but still be paid in the UK and deal with the UK tax etc.
BUT ------ if I also want to set up a business in Pt, then I have to register with the Portuguese tax system. My understanding, is that I am unable to be part of 2 countries tax systems at anyone time.
Am I able to contract for the UK business under the Portuguese Tax system (or a n other country's tax system)??
OR
Can I keep running the 2 tax systems?
Thanks in advance
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