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preetiupal

If we have an employee who is employed at our entity in netherlands but moves to portugal, are we able to allow them to work remotely for around 7-weeks until their contract ends? They have refugee status so are able to move freely but need to clarify tax position for the company and for the employee. Any advice welcome- thank you!

JohnnyPT

A refugee in NL can travel within the Schengen Area, but he has to carry identity documents and he can only stay for a short period of time in another country, such as PT. This short stay is usually for a period no longer than 90 days during a single visit.   


A refugee in NL does not have the automatic right to work in PT, even remotely.


If he wants to stay more than this period or work, he will need to apply for a residence permit in PT.


This is for Slovenia, for NL is the same.

https://www.unhcr.org/si/wp-content/upl … Me_SLO.pdf

preetiupal

@JohnnyPT thank you so much for your response Johnny!


So the employee does hold a residence permit in Portugal and will be moving there but we would like her to finish the last 2 months of her employment working remotely for our company based in Netherlands.


Do you have any advice on this, as an employer, please?

JohnnyPT

As it's only a few weeks (less than 3 months), I don't think there's any problem.

This is because non-tax residents in Portugal (this is the case) will only be taxed on income from Portuguese sources, while tax residents will be taxed on all their income, including that obtained outside Portugal.


In this case, as non-tax resident in PT, the income earned during those weeks of remote work will be taxed as usual in NL.


But don't forget to regularize the situation, since he can stay in PT a maximum of 90 days.

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