# How to Pay Zero Income Tax With Non-Habitual Residence in Portugal - Author: [[nomadcapitalist.com]] - Full Title: How to Pay Zero Income Tax With Non-Habitual Residence in Portugal - Tags:: [[Taxation in Portugal]] - URL: https://nomadcapitalist.com/2016/06/10/zero-income-tax-non-habitual-residence-portugal/ - ### Highlights first synced by [[Readwise]] [[2020-09-17]] - The tax residency is good for 10 years and does not come with the typical obligation that you visit or live in Portugal part of the year to maintain your tax resident status there. > The biggest draw of the program is the opportunity to reduce your income tax to zero. > This is possible, in part, due to Portugal’s 71 double taxation treaties. According to the regime, as long as the source country of your income has the power to tax your income (regardless of whether or not they actually apply the tax), Portugal will not tax your foreign-sourced income. > > The list of income sources that will not be taxed under this set-up includes foreign-source self-employment, royalties, eligible occupations, dividends, capital gains, and investment or rental income. ^5689c4 - if you happen to have Portugal-sourced income, it will be taxed at a flat rate of 20%. - To qualify for the non-habitual residence program, you must either be a citizen or a resident of Portugal. - you cannot have been a tax resident in Portugal at least five years prior to your application - Once you obtain Portuguese residence, you have until March 31st of the following year to apply for your NHR status. To apply, all you have to do is fill out a request and supply an official document stating that you were not a tax resident of Portugal in the five years previous to your arrival.