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IRS Jovem 2025

IRS Jovem provides a significant tax advantage for young professionals starting their careers, promoting financial independence and encouraging higher education and professional training.

IRS Jovem is a special IRS tax regime aimed at young workers in Portugal. This scheme provides an exemption from paying a portion of the IRS tax on their income.

Key Features

  1. Target Group

    • Young workers up to 35 years old (extended from 18–26 years).
    • No additional age requirement for those with higher qualifications (e.g., doctorates).

    Eligible Income

    • Income from employment (Category A).
    • Income from self-employment (Category B).

    Duration of Exemption

    • The exemption applies during the first 10 years of income (extended from 5 years).
    • These years can be consecutive or interpolated, provided the individual remains within the age limit.

    Eligibility Criteria

    Age Requirement

    • Up to 35 years old (previously 26 years).
    • The separate age limit for doctoral qualifications is no longer applicable.

    Educational Qualification

    • No specific qualification is required to access the program.
    • Prior conditions based on the completion of specific educational cycles have been removed.

    Tax Filing Requirements

    • Must not be part of their parents' household.
    • Must file an individual personal tax return.

    Restrictions

    • The applicant cannot benefit from IRS Jovem if they:
      • Are under the non-habitual residents' regime.
      • Have benefited from the Return Programme ("Programa Regressar").
      • Have benefited from the Scientific Research and Innovation Incentive.
      • Do not have their tax situation regularized.

 

HOW TO BENEFIT FROM IRS JOVEM

To benefit from this IRS regime (IRS JOVEM), the young individual must indicate their intention to apply Article 12-B of the IRS Code in their annual income tax return (Modelo 3 declaration), which is submitted through the Finance Portal between April and June of the following year.

However, the young individual can request that the Young IRS Benefit be applied starting in January, impacting their monthly salary through reduced withholding tax. To do so, they must request their employer to apply the benefit under Article 99-F of the IRS Code and indicate the year they started working (i.e., earning income) as an independent taxpayer.