# Portuguese Non-Habitual Residency Program (NHR) ## What It Is The NHR program is a scheme put into place to encourage people of means, particularly digital nomads, to live in Portugal and stimulate the Portuguese economy. In return, the government grants NHR program members some significant tax benefits. It lasts for 10 years. ## Requirements for NHR - Must be a citizen or resident of Portugal - Must not have been a tax resident of Portugal in the five years prior - Must apply for NHR before March 31st of the year after you first become a resident. ## Tax rates - If income is Portuguese in origin and your profession falls within a certain list of jobs: flat rate of 20% - If income is overseas in origin _and_ you are one of a certain list of occupations (including software consulting) _and_ the country the income was generated in has a tax agreement with Portugal: 0%-10% - Most double taxation agreements state that a 10% *may* be applied, but in practice this is not applied. [^afm] - Overseas pensions: 10% tax (this is a new development, as it was previously 0%) - Other income that is not Portuguese-sourced, such as investments: 0% - Cryptocurrency: 0% (though this could change) ![[How to Pay Zero Income Tax With Non-Habitual Residence in Portugal#^5689c4]] ## Applying for the NHR Here are the steps for registering for an NHR: [^ptresident] 1. Get a residence permit (but EU, EEA, or Swiss nationals can skip this). 2. Go to Repartiçāo de Finaças and get a [[NIF]] as a non-resident. 3. Buy or rent a house in Portugal. 4. Go back to Finanças to change your address to your Portuguese one and register yourself as a tax resident. 5. Register online at the Portal das Finanças site. Wait for the password to come in the mail, and then sign up. 6. Apply for NHR online. ## References - [[How to Pay Zero Income Tax With Non-Habitual Residence in Portugal]] ## See also - [[Portugal]] [^ptresident]: Serra Jorge, E. (2020). _Non-habitual residents - the step-by-step process to get NHR._ Retrieved from https://www.portugalresident.com/non-habitual-residents-the-step-by-step-process-to-get-nhr/ [^afm]: Chambers, C. (2021). Personal communication.