IRS Jovem
Youth Income Tax Relief
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A Portuguese tax benefit for workers under 35 that reduces IRS on employment and self-employment income for up to 10 years after the first year of income. Progressive exemption that starts high and decreases over time.
IRS Jovem is a tax relief scheme for workers under 35 in Portugal. If you started earning income from work (employment or self-employment) in Portugal relatively recently, and you're under 35, a portion of that income may be exempt from IRS for years.
The exemption is generous upfront and tapers down over time.
How the exemption works
The relief applies to the first €26,665 of qualifying income per year (as of 2026). The percentage exempt depends on which year of the scheme you're in:
| Year of benefit | Exemption |
|---|---|
| Year 1 | 100% |
| Year 2 | 75% |
| Year 3 | 50% |
| Years 4–10 | 25% |
So in your first year of eligible income, you pay no IRS on up to €26,665. In your second year, 75% of up to that threshold is exempt. From year four onward, it stabilizes at 25% for the remaining years of the 10-year window.
Who qualifies
Three conditions:
- You were 35 or younger during the tax year in question
- It's your first time earning income in that category, first Category A job or first Category B self-employment activity
- You weren't earning income in Portugal in the three years before you started
The third condition is important for people who moved to Portugal. If you registered as a freelancer in 2023, then 2023 is your first year and the clock starts there. If you had income in Portugal before registering your activity, the qualification may be affected.
IRS Jovem and freelancers on Recibos Verdes
Freelancers with Category B income can use IRS Jovem. Your gross income still goes into Anexo B as normal, the exemption isn't applied at the invoice or declaration level, but at the tax calculation level.
In practical terms: you fill in your income in Anexo B, then in the main Modelo 3 cover form (Rosto), there's a section for tax benefits. The AT system applies the IRS Jovem exemption if it's registered. If it's not showing up correctly in the simulation, check that your IRS Jovem status is on file with AT.
IRS Jovem vs NHR vs IFICI
These three regimes can't be stacked. If you have NHR status or applied for IFICI, you can't also claim IRS Jovem for the same income. In most cases NHR/IFICI will be more favorable if your income is high enough, but IRS Jovem is simpler to access and doesn't require the application process.
If you're under 35, newly self-employed in Portugal, and don't have NHR/IFICI, IRS Jovem is worth understanding before you file.
Frequently asked questions
What is IRS Jovem?
IRS Jovem is a Portuguese tax benefit for young workers (age 35 or under) that exempts a portion of their employment or self-employment income from IRS for up to 10 years. The exemption starts at 100% in the first year, then steps down progressively over the following years.
Who qualifies for IRS Jovem?
Workers aged 35 or under in their first year of income in the category (first time earning Category A employment income or Category B self-employment income). The benefit applies for up to 10 years. You cannot combine IRS Jovem with NHR/IFICI for the same income.
How does IRS Jovem affect the 2026 IRS filing (2025 income)?
For 2026 IRS Jovem, the exemption rates are: Year 1: 100%, Year 2: 75%, Year 3: 50%, Years 4-10: 25%. If 2025 was your first year of self-employment income (Category B), you may be eligible for a significant exemption. You declare this in Quadro 6 of your Modelo 3, Anexo Rosto. The income is still declared in full in Anexo B, the exemption is applied at the calculation level.
Can IRS Jovem apply to freelance income on Recibos Verdes?
Yes. IRS Jovem applies to Category B income (self-employment), including freelancers issuing Recibos Verdes. If you started your freelance activity in Portugal in 2025, you may qualify for a substantial exemption when you file your 2026 IRS declaration.
Related terms
Portugal's personal income tax: the annual tax that solo entrepreneurs pay on their individual income, declared each spring for the previous year's earnings.
Personal Income TaxIRSThe English name for IRS (Imposto sobre o Rendimento das Pessoas Singulares): the annual tax on individual income in Portugal, including freelance and self-employment earnings.
Regime SimplificadoRegime Simplificado de Tributação · Simplified Tax RegimePortugal's simplified tax regime for solo entrepreneurs and small businesses, where taxable income is calculated using fixed coefficients applied to gross revenue.
Trabalhador IndependenteSelf-Employed WorkerThe Portuguese term for an independent worker or sole entrepreneur, the equivalent of a freelancer or sole trader in other countries.