Lately a lot of Portuguese IT workers have been getting offers to work remotely from Portugal to companies in the UK, France and other countries.

Sometimes there is a previous contract with the employer, and the worker request to start working remotely from Portugal. Let´s face it: why shouldn´t he? Portugal is famous for nice weather, great food, friendly people and a great remote work environment. 

When this happens, some companies do not know if this change will impact issues like taxation or Social Security.

If the worker is staying in Portugal more than 183 days a year he/she will be a resident in Portugal. For tax purposes, this means there will be no retention of taxes abroad as long as there is a double treaty convention allowing it and as long as the worker gets a certificate of residency (which nowadays is quite simple).

Another issue to consider is if the company will be getting a permanent establishment here. This should be addressed in the work contract and both parties must make sure, for instance, no office is rented in Portugal.

Regarding Social Security, in most situations we have to apply Regulation (EC) no 883/2004 of the European Parliament and of the Council. Portugal will probably be entitled to exclusively charge the contributions from the worker and the company. This will implicate getting a Portuguese tax number (NIF) for the company and sending an online declaration every month – once again, not such a big deal.

All this considered: what are you waiting for to work remotely from Portugal?                                                                                            

Suzana Costa

sfc@brochadocoelhoadvogados.pt