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Marketplace taxes

Hello guys

I’am new here :slight_smile:

I’m building environments for the marketplace.
I wonder if anyone knows how payments and taxes work in Portugal.

Thanks :slight_smile:

Will you do this as an individual, or will you start up a company? (The second option is usually best).

I wonder why the second option is usually the best?

Why is the second option better? Example here in Finland you can earn 8000 euros per year without making a tax return to government.

Well if you want to get into the asset supply business you would will need a business license, in Canada anyways, and would charge all of your expenses as well as tax requirements to the business. There are benefits but the big one is if your business goes bankrupted or decided later to shut down you will in most cases not be held personally for any losses inquired by the business.

Well he’s from Portugal which is part of EU like Finland is so I would suggest to him that as long as asset making is just a hobby where you can earn some money like below 10,000 euros a year, then just stick individual. At least here in EU. You can’t really go bankrupt making assets to Marketplace.

Well if one makes stuff for the Marketplace there is realllyyy no such thing as a hobby if money is involved. In general one would want to do a tax return to get back the 30% or so tax withholdings on every asset package sold as well as some of the tax credits available. Last year we got back more on the credits than we paid in taxes on our ad revenue.

Best advice to be given is to not take advice from someone you don’t know on a forum as to individual decision making and the question of should you become a company or stick as a freelancer could be something to ask a financial advisor at your own back. In most cases it does not cost you a red cent as it’s a service they generally offer free of charges or fees.