The State Budget Law for 2020 created a partial IRS exemption regime, called "IRS Jovem".
This exemption (Article 2 B of the IRS Code) is intended for young people who obtain income from dependent work, for the first time, after completing a
This exemption (article 2 B of the IRS Code) is aimed at young people who obtain income from dependent work for the first time after completing a certain cycle of studies, and is valid for a period of 3 years.
Tax Benefit
Young people with a category A taxable income, including exempt income, of €25,0753 or less, have a partial IRS exemption, of:
- 30 % in the first year with a limit of 3 291,08 euros (7,5xIAS4)
- 20 % in the second year with a limit of EUR 2 194,05 (5xIAS);
- 10 % in the third year with a limit of EUR 1 097.03 (2.5xIAS).
This benefit is not cumulative with the regime of Non Habitual Residents (NHR), nor with the tax regime related to the Regressar Program (article 12 - A
of the IRS Code).
Note: The exemption can only be used once by the same taxable person.
Learn about the conditions of access in the information leaflet of the Finance Portal.
Source: Autoridade Tributária e Aduaneira
