The State Budget Law for 2020 has created an "IRS partial exemption regime, called "IRS Jovem" (Young PEOPLE IRS).

" Young people " that receives incomes as employees, for the first time, after finishing a given training. It will be valid for a period of 3 years.

Access conditions
They must meet, cumulatively, the following requirements:

  • Between 18 and 26 years of age;
  • Receive incomes as employees (Category A);
  • Not be considered as dependants;
  • Having concluded a training, superior or equal to level 4 in the Portuguese National Qualifications Framework.

Tax Benefit
Young people receiving a taxable income, including exempt incomes, of category A, equal or inferior to € 25.0753, benefit from a partial IRS exemption, of:

  • 30% during the first year with a limit of 3 291,08 euros;
  • 20% during the second year with a limit of 2 194,05 euros;
  • 10% on the third year, with a limit of 1 097,03 euros.

Accumulation with other benefits:
This regime"may not be cumulated" with:

  • Regime of the Non-Habitual Residents,
  • Tax regime regarding the "Regressar" Program


  1. The exemption can only be used once by the same taxable person.
  2. The access to this regime is possible by selecting said option on the IRS tax return form "Declaração Mod 3".

Useful link: Folheto informativo IRS Jovem