Comments by "Jeremy Barlow" (@jeremybarlow2291) on "Four Problems Paying Zero Tax with Portugal’s NHR Program" video.

Portugal's tax regime is troubling for entrepreneurs because of the management and control rules for corporations, their permanent establishment rules, the fact that the US tax treaty has no bright line test of tax residency for a company, I mean Hungary and Malta use place of incorporation as the final determinate. Portugal also has an exit tax for corporations if management and control or a permanent establishment changes it's seat. If you want Portuguese citizenship, marrying a citizen and living outside the country for 4 or 5 years with your spouse is the only way to become Portuguese and not get sucked into the tax net as an entrepreneur. There are other ways, but only if the board of your company is in another country and you are not working in Portugal at all.
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@CivisCaeliBr do you manage and control the company because under Portugal's rules the place where it is effectively managed is where it is tax resident. If you do any work for the company while in Portugal under Portugal's tax law you have created a permanent establishment and the company is subject to tax.
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My other sources would be having read the residency and permanent establishment clauses of the US double tax treaties. I paid particularly close attention because Portugal was high on my list of places to go to get EU citizenship, but the NHR would be of virtually no use to me because of the rules under the double tax treaty and the fact that me doing work in Portugal as an employee of my company would subject me to their tax regime including their exit tax even if I added a couple of board positions and paid a few friends and family members to enjoy a vacation/board meeting as directors every year in Florida. By the way, I'm a tax lawyer
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@CivisCaeliBr Portugal is still high on my list, but only if I were using a Golden Visa and able to not be tax resident while gaining permanent residency & citizenship. Like Italy Portugal allows the third country national married to one of their citizens to claim citizenship while residing outside the country as well. Before this investigation, the D7 visa was high on my list. It still could have a place on my list, but only if my business was a sole proprietorship, so no exit taxes applied the EU free movement regime has fairly well precluded exit taxes on citizens, but not corporations, but then the NHR would probably be of very little benefit, unless by chance I managed to start selling the screenplays I've written over the years. TV and Film Artists are amongst the favored professions.😏
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@CivisCaeliBr my sources on that would be the annual Corporate Tax Highlights from Deloitte and PWC's tax residence website regarding Portugal.
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@zeastburg with management and control rules in Portugal and CFC rules, it could be tricky, and may mean there is no real tax benefit, in fact it may mean you are in a worse tax position.
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