Can I benefit from the Youth IRS (IRS Jovem)?

What is the Youth IRS?

The Youth IRS is a tax benefit created to help those starting their professional life. Basically, it allows you to pay less personal income tax (IRS) on your earnings for 10 years (which can be consecutive or non-consecutive).

You can take advantage of this discount if you are up to 35 years old (or 37 for doctors) and work as an employee (Category A) or are self-employed (Category B).

What are the main differences from "standard" IRS?

The big difference is in your pocket: you'll have a partial exemption on what you earn. The submission deadlines are the same as for a standard tax return (from April to June), but the tax calculation is much friendlier:

• 100% exemption in the 1st year;
• 75% exemption between the 2nd and 4th year;
• 50% exemption between the 5th and 7th year;
• 25% exemption between the 8th and 10th year.

Note: This exemption has maximum annual limits (caps) based on the Social Support Index (IAS). In other words, if you earn well above average, the exemption only applies up to a certain amount.

Are there exceptions?

Yes, not everyone can qualify for the Youth IRS. You are excluded if:

• Your tax situation is not in order (you have debts to the Tax Authority or Social Security);
• You already benefit from the Non-Habitual Resident (NHR) regime;
• You have opted for the "Programme Regressar" (Programa Regressar).

How to make sure you don't miss anything?

Moloni ON helps you keep your business management up to date, but for specific questions regarding filling out your tax return, we always recommend checking the gov.pt portal or speaking with a certified accountant.

Extra tip: In Moloni ON, you can track your income month by month, which makes it much easier to predict how much you will declare the following year.

Note: This article is for informational purposes and does not replace the need to consult current legislation or seek support from specialised consultancy.