In this episode, Tytle’s tax expert explains the key tax and compliance rules for individuals living in Portugal and working for a foreign employer. Topics include tax residency criteria, the obligation to report worldwide income, and how double taxation treaties can help offset taxes withheld abroad.
The discussion also covers social security contributions, detailing when employees must contribute to the Portuguese system and how, under EU regulations, obtaining an A1 certificate can allow them to remain under their country of origin's social security scheme. Additionally, it examines potential challenges for employers, such as the risk of creating a permanent establishment in Portugal.
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