IRS Jovem

IRS Jovem is a tax incentive available to young workers under 35 years old who are in their first years of independent income (Cat. A or Cat. B). It provides a partial exemption from IRS on the first €28,737 of employment or self-employment income, tapering over up to 10 years of eligibility. In the first year of eligibility, 100% of income up to the cap is exempt; this exemption rate decreases each year. IRS Jovem cannot be combined with IFICI or NHR Legacy. It is administered automatically by AT once the taxpayer files Modelo 3 and indicates the applicable year of eligibility. The regime is designed to retain young Portuguese graduates and encourage early-career financial independence.