The service, now open for early access, is the first of its kind and is meant to solve many confusions and inaccurate tax reporting in the expat community.
Everyone living in Portugal with foreign income needs to file a tax return at the end of each tax year in Portugal.
Due to the complexity of the NHR scheme, filing a correct tax return in Portugal can be very difficult. The form for annual tax returns in Portugal allows people to input types of income common in Portugal such as employment, self-employment and capital income, but expats with income from various foreign sources such as U.S. LLCs and S-Corps, UK Ltds, different types of savings accounts etc often remain unclear on how to report this income. Nearly every NHR return raises complex questions of international taxation of the type normally dealt with by international tax lawyers, but it is the local high street accountants who are expected to offer reliable support. In practice, expats who consult 3-4 professionals or even the tax authorities realise that there could equally be 3-4 interpretations.
The experts at Fresh Portugal explain that the NHR system exempts certain types of income in Portugal, mostly foreign sourced income that is exposed to potential taxation in the country where it comes from. However, even the concept of "foreign sourced" income alone is extremely confusing. Does "foreign source" mean that the client is foreign or that the work was done overseas? Dividends from overseas companies are normally exempt from taxation from Portugal but what is an overseas company? Is a company registered in a different country automatically an overseas company even if it is managed from Portugal?
After helping hundreds of expats, normally those with high income, Fresh Portugal has already Joana the tax bot, an automated chatbot that provides basic advice to expat on taxation in Portugal. With the launch of FreshReturns, a service at an affordable price point, Fresh Portugal is completing its offering to all expats in Portugal and aims to bring NHR confusion to an end.
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By Russell Taylor from Other on 21 Oct 2022, 17:59