IRS Jovem 2026: Portugal's youth tax break — who qualifies and how much you save
Portugal's IRS Jovem gives a 100% income tax exemption in year one and runs 10 years for workers up to 35, capped at 29,542 euros. Rules and how to claim.
If you are up to 35 and working in Portugal, IRS Jovem can mean paying no income tax on your salary at all in year one — and less tax for a decade. The regime covers income up to 29,542.15 euros a year and no longer requires any diploma: age and the start of your working life are enough.
Who qualifies for IRS Jovem in 2026?
Anyone up to 35 with employment income (salary) or self-employment income (recibos verdes), regardless of education — the degree requirement was dropped in 2025. The benefit runs for up to 10 years of income, consecutive or not, and is not tied to one employer: it follows the person, not the contract.
How much do you save with IRS Jovem?
The exemption tapers over the 10 years: 100% in the first year, 75% from the second to the fourth, 50% from the fifth to the seventh and 25% from the eighth to the tenth. The cap is 55 times the IAS — in 2026, 29,542.15 euros a year (the IAS sits at 537.13 euros). Anything above that is taxed at normal rates; everything below enjoys the current year’s percentage. In practice, a recent graduate on an average salary can save well over a thousand euros in year one alone.
How do you claim IRS Jovem?
Two moments matter. Month to month, you can tell your employer to apply the regime to withholding — you feel the relief in every payslip. Then, in the annual tax return, you must tick the IRS Jovem option in the relevant annex; that is what locks in the benefit. Simulations and details are on the tax authority portal and the regime is presented on gov.pt.
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Frequently asked questions
I changed jobs: do I lose the benefit?
No — the years count with you, not the company; you resume where you left off in the new contract.
I work freelance: does it count?
Yes, the regime covers category A and B income under the same conditions.
What if I earn above the cap?
Only the part above 29,542.15 euros is taxed normally; the rest keeps the exemption for your current year.
Illustrative · Photo: Ivan S / Pexels