Remote working in Portugal for an Irish registered company

zabaleta5

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Hi.

Im planning to move to Portugal in the new year for the foreseeable future.

I'm currently working for the irish entity of multinational company.

Although I am prepared to quit this job and find another in Portugal, my preference would be to stay in my current job and work remotely - at least for the first year or two.

Everyone is working from home at the moment and my boss is supportive of this long term, so i dont think that part of it would be an issue.

The issue that arises is how i would be treated tax wise as a PAYE earner for an irish registered company but working remotely in Portugal (Portugal has a double tax agreement with ireland).

I have searched a lot but cannot find any advice for how to handle this or how it worked for people in similar circumstances.

Any guidance here would be greatly appreciated.
 
Has your boss checked whether your company has any rules on this itself? Does the multinational have an entity in Portugal? They may not want you working abroad long term (more than 6 months) under the Irish entity.
 
There is no doubt that the new "normal" will see many more people working from home, and for some people that may mean their actual home country as well.

If you are going to work in Portugal "full time" then your employer may obtain a PAYE Exclusion Order authorising him not to deduct PAYE or USC from your payments. You would obviously be liable to Portuguese taxation.

I know some employers are wary of employees working from home in certain countries, (such as France) because they are concerned that they might get caught for a much higher level of Employer's PRSI if the appropriate structure is not established.

As Purple suggests, you should seek advice from an accountant. (Your employer should also seek advice.)

Jim Stafford
 
Thanks for all the replies - some very helpful advice here

The company does have a Portuguese entity - so i presume that will make it easier as they have experience of the Portuguese tax system ?
 
Bear in mind the salaries in Portugal are a lot less than here. After calculating how things work out, you may determine it is better to stick with your current employer if they are maintaining your current level of pay
 
Thanks for all the replies - some very helpful advice here

The company does have a Portuguese entity - so i presume that will make it easier as they have experience of the Portuguese tax system ?

Hi @zabaleta5, did your multinational company pay you thru their Portuguese entity? I am about to start a similar experience and am wondering do you have any further advice having gone through it
 
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