# Portugal High Valued Profession pays tax on foreign income?

**URL:** <https://community.nomadgate.com/t/portugal-high-valued-profession-pays-tax-on-foreign-income/33350>\
**Category:** Tax and legal\
**Tags:** portugal\
**Created:** [January 26, 2021, 11:47am UTC](https://community.nomadgate.com/t/portugal-high-valued-profession-pays-tax-on-foreign-income/33350 "2021-01-26T11:47:07Z")\
**Posts on this page:** 5\
**Page:** 1

<div class="post-metadata">

**Author:** ![Yan](https://community.nomadgate.com/letter_avatar_proxy/v4/letter/y/3e96dc/32.png) [@Yan](https://community.nomadgate.com/u/Yan)\
**Post date:** [January 26, 2021, 11:47am UTC](https://community.nomadgate.com/t/portugal-high-valued-profession-pays-tax-on-foreign-income/33350/1 "2021-01-26T11:47:07Z")

</div>

Hi guys,

I live in Portugal as NHR and still failing to understand how to manage my taxes in the best way.  
I’m a designer which is on the list of the high valued profession and i work with clients mostly outside the eu,  
Should i be taxed for that?  
Can an Estonian company or third party invoicing company help me pay less taxes?

Thanks

Yan

---

<div class="post-metadata">

**Author:** ![anon37423241](https://community.nomadgate.com/letter_avatar_proxy/v4/letter/a/c67d28/32.png) [@anon37423241](https://community.nomadgate.com/u/anon37423241)\
**Post date:** [January 27, 2021, 3:15pm UTC](https://community.nomadgate.com/t/portugal-high-valued-profession-pays-tax-on-foreign-income/33350/2 "2021-01-27T15:15:04Z")

</div>

Hi Yan,

based on what you are saying you may be eligile to fall under NHR value added taxation.  
If you work as a sole entrepreneur you should issue invoices through the “recibo verde” regime.  
It doesn’t matter where your clients are located. You’ll be taxated in Portugal if you do your activity there.

So in general you would be taxated for the professional incomes at 20% flat rate (other types of incomes have their own treatment).

If you work from Portugal and invoice your clients from [Estonia](https://nomadgate.com/estonia/) the portuguese tax authority could claim the icome as produced in Portugal and tax it. So be very careful with that.

Please also bear in mind that professional incomes originated in Portugal also pay social security. So you will have to add the social security burden to the 20%.

Hope this helps

---

<div class="post-metadata">

**Author:** ![Yan](https://community.nomadgate.com/letter_avatar_proxy/v4/letter/y/3e96dc/32.png) [@Yan](https://community.nomadgate.com/u/Yan)\
**Post date:** [January 31, 2021, 7:47pm UTC](https://community.nomadgate.com/t/portugal-high-valued-profession-pays-tax-on-foreign-income/33350/3 "2021-01-31T19:47:59Z")

</div>

> [@anon37423241](#):
>
> you

Thanks for your replay,  
Do you have any idea about a scenario that i get a salary from a company in [Estonia](https://nomadgate.com/estonia/), (No taxes paid in [Estonia](https://nomadgate.com/estonia/))?

---

<div class="post-metadata">

**Author:** ![anon37423241](https://community.nomadgate.com/letter_avatar_proxy/v4/letter/a/c67d28/32.png) [@anon37423241](https://community.nomadgate.com/u/anon37423241)\
**Post date:** [February 1, 2021, 11:19am UTC](https://community.nomadgate.com/t/portugal-high-valued-profession-pays-tax-on-foreign-income/33350/4 "2021-02-01T11:19:35Z")

</div>

You should check the double taxation treaty between Portugal and [Estonia](https://nomadgate.com/estonia/) but as a general rule, employment income is exempt in Portugal only if the income is effectively taxated in the sate of the source.  
So in this case if [Estonia](https://nomadgate.com/estonia/) does not tax, Portugal will. I think that [Estonia](https://nomadgate.com/estonia/) applies a 20% withholding tax on employment income paid to non residents so no difference in effective tax rate. The difference could be the social security but I honestly don’t know how does it work in [Estonia](https://nomadgate.com/estonia/).

---

<div class="post-metadata">

**Author:** ![kristjan.r](https://community.nomadgate.com/letter_avatar_proxy/v4/letter/k/e79b87/32.png) [@kristjan.r](https://community.nomadgate.com/u/kristjan.r)\
**Post date:** [February 22, 2021, 7:32pm UTC](https://community.nomadgate.com/t/portugal-high-valued-profession-pays-tax-on-foreign-income/33350/5 "2021-02-22T19:32:18Z")

</div>

Hey, Yan!

FYI: If all the work is done outside of [Estonia](https://nomadgate.com/estonia/) and you are not an Estonian tax resident, then your salary will not be taxed in [Estonia](https://nomadgate.com/estonia/) - this is if you work according to an employment contract and do not belong to the management. Therefore taxes will be due in Portugal.