I already have NHR and I opened an LLC after, am I in danger?

Hi there,

I moved to Madeira a year ago, and got my residency, self-employment and my NHR around October last year. This year I decided to open my LLC in America to make sure I can achieve a better tax-rate through dividends.

Am I in danger by doing this because I got my NHR before I opened the LLC?

Would love to know this because tax advisors on Madeira all say different things and it’s bugging my mind like hell.

Many thanks for your insight,
Kevin.

Dont know about Madeira but how are you going to take money from your LLC? It varies from state to state but in general you will be liable for US federal and state income tax and social services. And your LLC may be subject to corporation tax on top! Why not set up your company in a jurisdiction which doesnt tax dividends and has no corporation tax? There are several…

Foreign owned LLC is not liable for US federal or state income tax. And I would pay myself a small salary (which will be taxed in portugal) and the rest in dividends which would be 0% tax on with NHR.

Looking forward to the answers to come. :slight_smile:

Kind regards

An LLC is certainly taxable in Florida!!! And I suggest you take good advice because if any US entity pays out a salary or dividend it is subject to tax, be in income tax or witholding tax. Otherwise there was nothing to stop Bill Gates relinquishing his US citizenship, getting citizenship in some dodgy West Indies island and then Microsoft not paying any tax…Also be aware that many European countries require companies totally owned by their nationals to report to their tax authorities. I also understand capital gains tax is still a liability with NHR.

This is all above my pay grade, but do please take advice from an accountant with expertise in BOTH jurisdictions. I have learned over the years that simply having an accountant in europe and a CPA in the US can lead to mistakes

Good luck

Well, seems you know more than the four tax advisors I’ve talked to. :stuck_out_tongue: Thanks for your input spam.