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 Post subject: Tax in PT or UK?
PostPosted: Wed Aug 16, 2017 2:40 pm 
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Joined: Fri Mar 03, 2017 1:22 pm
Posts: 18
I am moving to Portugal in October and will continue to be employed by my company in the UK. Should I pay tax in the UK or should I pay tax in Portugal? I seem to be getting mixed answers everywhere I look. Help appreciated.


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 Post subject: Re: Tax in PT or UK?
PostPosted: Thu Aug 17, 2017 6:55 am 
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Joined: Fri Apr 16, 2010 9:57 pm
Posts: 2076
Location: Minho
According to the European Commission's website
Quote:
If you live in one EU country and work there for a company based in another EU country you will normally, under most tax treaties, be subject to tax only in your country of residence.
although it goes on to say
Quote:
This is only a summary of what usually happens. To find out what the rules are in your case:
◾ask a local tax office
◾check the double tax agreement between your host country and the country where you are tax-resident

Full text here : http://europa.eu/youreurope/citizens/wo ... dex_en.htm

Here is the relevant section of the double taxation agreement between Portugal and the UK:

Quote:
Article 15 Employments
(1) Subject to the provisions of Article 17, salaries, wages and other similar remuneration (other than remuneration to which Article 18 applies) derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.
(2) Notwithstanding the provisions of paragraph (1), remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:
(a) The recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the fiscal year concerned, and
(b) The remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and
(c) The remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
(3) Notwithstanding the preceding provisions of this Article, remuneration in respect of an employment exercised aboard a ship or aircraft in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.


The full text is available on the UK government website, link here : https://www.gov.uk/government/uploads/s ... _force.pdf

If it isn't clear to you from that, I think your best bet would be to enquire of the tax authorities in both countries in the hope of getting a consistent response from both.


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