By Hugo Ribeiro, Certified Accountant · Member of the Order of Certified Accountants · HVR Business Consulting
Youth IRS: Complete Guide for Beneficiaries Youth IRS: Complete Guide for Beneficiaries The Youth IRS regime, introduced and progressively refined within the Portuguese legal framework, represents a strategic fiscal measure designed to encourage the retention and return of qualified young people to the national labour market. By offering a set of progressive tax exemptions on earned income, the legislator aims to mitigate the impact of the initial tax burden for those taking their first steps in their professional lives, making Portugal a more attractive destination for career development. Thi…
Key Takeaways
Leverage progressive tax exemptions with Portugal's Young IRS.
Qualify: Under 35, with higher education completed.
Benefit from 50% exemption in your first working year.
Apply automatically as employed; declare as self-employed.
FAQ
What is the Young IRS regime in Portugal?
The Young IRS is a Portuguese tax regime offering progressive exemptions for young people entering the job market, supporting their professional integration.
Who is eligible for the Young IRS?
Young people up to 35 years old, with level 4 or higher education completed, and with income from dependent or independent work, are eligible for this regime.
What are the Young IRS exemptions per year?
Exemptions are 50% in the 1st year, 40% from the 2nd to 5th year, and 30% from the 6th to 10th year, applicable to a portion of income.
How do I apply for the Young IRS?
For employed workers, it's automatic; for self-employed, it requires a specific declaration to the Tax and Customs Authority. Seek expert advice for guidance.