What was the personal situation or challenge?
Alice, a UX UI digital expert working remotely on a small to medium-sized business (SME) basis for several prominent international corporations, wanted a more flexible lifestyle in a sunny climate and the ability to explore her passion for painting with the backdrop of Lisbon and its nearby coastline.
Desiring a change from the UK, she relocated to Lisbon, Portugal, after the COVID lockdown period. Since moving, she's been revitalised and excited about her decision and the future, but she didn't fully understand how she might fully leverage her relocation to maximise her financial and tax situation based on her passive income, such as dividends from her UK company.
Upon interacting with other Digital Nomad expats residing in Portugal, she discovered that her taxes were significantly higher than those of many in her peer group. Alice became interested in exploring options within Portugal's tax regimes and visas to ensure that her taxes were optimised under the visa and tax system for people like her, building a new future in Portugal.
In addition, Alice's ageing mother, who constantly needed support and attention, expressed a desire to follow her daughter to Lisbon. The considerable distance presented obstacles, and we helped both of them work through these challenges so that they could arrive at the best solution for their family situation and lifestyle.
How did Portugal Pathways help?
Grasping Alice's unique situation, our team of experts identified that combining the Digital Nomad visa and the Non-Habitual Residency (NHR) tax regime would be most advantageous for her. Our specialists guided her throughout the application procedure, achieving successful completion in two months. This secured Alice's residency in Portugal and allowed her visa-free travel throughout the 26 EU Schengen member nations, which was ideal based on where her international clients were located.
Alice now benefits from a 0% tax rate on her foreign income from her expert work outside of Portugal. However, our assistance to Alice extended beyond securing her visa and fine-tuning her tax scenario. Recognizing the vital role of family, we assisted Alice in facilitating her mother's visits from the UK, minimizing both inconvenience and risk.
We took charge of all travel logistics, from arranging airport transportation to ensuring easy access to pharmacies and medical facilities. Alice's visa status also makes her mother eligible for residency, and she is considering moving to Portugal to be closer to her daughter.
Other benefits have also resulted from this, including inheritance tax benefits between her and her mother. Her mother also has a UK pension, and she is able to reduce her tax liability by joining the NHR tax regime alongside the D7 Visa programme, which means that her pension will go much further than if she had stayed in the UK.
