Hi everyone,
I’m a Portuguese freelancer working remotely for a European company, and I’m planning to go to Japan on a Working Holiday Visa. I do realise this Visa has the intent of exploring Japan, but I'm not at a point in my life where I can just give up this job and go unemployed. So, ideally, I’d keep working for the same company while I’m there, to be able to afford my trips and small holidays throughout Japan. However, my company is a bit skeptical about the move, mainly because they’re unsure how taxation would work if I’m not based in Portugal during that period.
I currently pay all my taxes in Portugal as a freelancer, and from what I understand, being on a Working Holiday Visa in Japan doesn’t automatically make me a tax resident there. I also read that Portugal and Japan have a tax treaty to avoid double taxation, so I don’t expect anything would change drastically, but I want to be sure. I would assume that everything would remain the same. I would continue to pay Portuguese taxes during the entire year I would be in Japan.
My company is asking for some kind of professional clarification, ideally a short explanation or document from a qualified accountant, confirming how tax residency and obligations would work in this case. I’d also like to feel confident I’m handling things correctly.
If anyone has been in a similar situation working remotely on a WHV in Japan, I’d really appreciate hearing how you handled taxes. And if you know of an accountant (either in Japan or Portugal) who understands international tax issues, especially for freelancers or remote workers, please let me know. English- or Portuguese-speaking would be ideal.
I saw a previous Reddit post about this, but it's a bit old, so I'm not sure the information is still reliable.
Thanks a lot!!
by varza1234