Portugal: Constructing your tax obligations

If such a taxable presence is created, business profits of the permanent establishment will be subject to Portuguese corporation tax. This typically occurs when construction projects continue for more than 12 months.

Under EC regulations, social security contributions (for example National Insurance contributions in the UK) are only payable in a single member state at any time. It may be possible to make an application to claim ‘detachment’ so that the employee continues to be covered by the home country, the UK, for a period of up to two years. This essentially allows a continuation of UK NI contributions for the period of detachment instead of paying Portuguese social security taxes.

The social security position post-Brexit remains to be confirmed.