Entering the job market is a crucial milestone in a young person’s life. To support this transition, the Portuguese State offers the IRS Jovem tax regime, which provides a reduction in the Personal Income Tax (IRS), helping to promote financial Independence and the development of a strong foundation at the start of a professional career.

Starting from income earned in 2025, this regime has been revised and expanded, covering a broader group of young individuals and extending the duration of eligibility.

Important Note: The information below refers to the IRS declaration to be submitted in 2026, concerning income earned during the year 2025.

Who Can Benefit from IRS Jovem?

This tax regime is available to young people who meet all the following criteria:

• Be under the age of 35 as of December 31, 2025;
• Earn income from employment (Category A) or from self-employment(Category B);
• Be financially independent, i.e., not considered a dependent for IRS purposes;
• Have their tax situation regularized with the Portuguese Tax and Customs Authority.a.

These new conditions make the IRS Jovem regime more inclusive, allowing more Young professionals to benefit from meaningful support during the early years of their careers.

How Long Can One Benefit from IRS Jovem?

Under the new rules, eligible taxpayers can benefit from the IRS Jovem regime for up to 10 years, whether consecutive or non-consecutive. It is important to note:

• The 10-year period begins from the first year in which the taxpayer earns income that qualifies for this regime;
• Even if the benefit is not used in that first year, it still counts toward the 10-year limit.

How to Apply forIRS Jovem?

There are two ways to access the benefit, allowing each young person to choose the method that best fits their situation:

Monthly Application (Withholding at Source)
The individual can request that their employer apply the benefit, resulting in a lower amount withheld monthly for IRS.

Annual Application (IRS Declaration)
Alternatively, the benefit can be requested when submitting the annual IRS tax return,by completing Model 3, which must be submitted to the Portuguese Tax and Customs Authority in 2026.

Why Is This Regime Important?

IRS Jovem is a significant measure for promoting youth employability and encouraging financial independence. With the new rules applicable to 2025 income, the regime becomes more inclusive, long-lasting, and better adapted to today’s professional realities, offering more extended and accessible tax relief.
If you meet the requirements, be sure to apply for this benefit. It can represent significant savings during the early years of your career.

Intelac Is Here to Support You

For more information or assistance, the Intelac team is available to support you.

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