Last updated: 28 September 2026 · By Haider Shah, accounting technician in Portugal
IRS Jovem is a tax benefit that exempts a large part of young people’s work income from IRS for up to 10 years. Since 2025 it no longer requires a university degree, and foreign residents qualify too, which makes it one of the most valuable and most overlooked benefits for young immigrants.
Who qualifies
- You are 35 or younger
- You are tax resident in Portugal
- You earn income from employment (Category A) or self-employment (Category B)
- You are not claimed as a dependent on someone else’s IRS
- Your tax situation is regular
- You are not using another special regime (such as the old NHR or IFICI)
How much is exempt
The years are counted from the first year you earned work income as a non-dependent. They do not have to be consecutive. The exemption applies to income up to 55 × IAS: €28,737.50 for 2025 income and €29,542.15 for 2026 income.
Example
Rahul, 27, earns €18,000 a year. It’s his 2nd year with IRS Jovem, so 75% of his income (€13,500) is exempt and only €4,500 is considered for IRS. In practice, he pays little or no IRS.
How to use it
Every month (employees)
Tell your employer in writing that you qualify for IRS Jovem and which year you are in. The employer then applies a lower withholding, so you get more net pay each month instead of waiting for a refund. See gross to net salary.
In your annual IRS return
- Employees: fill in the IRS Jovem section in Annex A
- Self-employed: fill in the IRS Jovem section in Annex B
The exemption is only granted if you claim it in your IRS return. Don’t forget.
Frequently asked questions
I’m a foreigner who just arrived. Can I use it?
Yes, if you are tax resident in Portugal and meet the other conditions. Your years start counting from your first year of work income.
I’m on recibos verdes. Does it apply?
Yes, Category B income is included.
I’m 36. Is it too late?
The benefit is for taxpayers up to 35 years of age.
Need help with this?
Under 35 and not sure whether you’ve been getting IRS Jovem? I can check your past returns and correct them where possible.
Contact meOfficial sources
- DECO PROteste – IRS Jovem: como funciona em 2026
- OCC – Guia prático IRS Jovem (Feb 2025)
- Coverflex – IRS Jovem 2026
This guide is general information, checked against official sources on 28 September 2026. Rules and portals in Portugal change often, so confirm the current rules with the official source before you act. It is not legal advice.
