Question on contracting / Portuguese tax rates

[zippy72]

Hi,

I've been working from home for the current client for a while now, and having moved to Portugal I've been working from home here. I've got a cross-border accountant who has finally started looking at paying tax in Portugal, but has specified now that I am at the resident rates. As a result my take home has gone down by about half, meaning that about 66% is being swallowed in fees and taxes (when in the UK it was about half that). I'm not sure this is right, as my accountants have so far been quite sparse with their information to me.

Does anyone know anybody I can talk to about this? Anyone been in the same situation, even?

Thanks

[Alan @ BroomeAffinity]

Blevins Franks or TM Partners are accountants in the algarve I've used in the past but for property income not earned income. They both seemed very well versed though.

[lecyclist]

Hi Zippy,

Hopefully someone will come along shortly to give you appropriate advice.

You really shouldn't be paying 66%, as that means on a 5 day work week, you are working almost until thursday for "the man" and the rest of the time for yourself. I assume you are working as an employee of a management company, when you mention taxes and fees. Have you considered a different work setup? Have you tried to educate yourself on tax law? There are lots of resources freely available on this site and elsewhere.

Lecyclist

[ASB]

Portuguese rates are high.

on employment incomer employers ni is 24. Employees 11. No allowances that I recall.

With income tax again no allowances I recall and starts at about 15% rising rapidly to about 50%.

obviously it all depends how you are operating. But to get money in your hand you get a lot of deductions.