Recent amendments to Article 12.º-B of the IRS Code introduce significant updates to the IRS Jovem scheme, broadening access and making it more inclusive. From 2025 onwards, income earned under categories A and B (employment and self-employment) may benefit from a partial IRS exemption for a maximum period of 10 years, provided the taxpayer is under 35 years old.
Key Changes:
Universal eligibility – the scheme now applies to all young people up to 35 years old, regardless of their academic qualifications.
Removal of the differentiated age limit – the previous extension to 30 years for those holding a Level 8 qualification under the National Qualifications Framework has been revoked.
Elimination of the one-time usage restriction – taxpayers can benefit from the exemption whenever they meet the requirements, within the 10-year limit.
Simplified process – the Tax Authority will automatically provide information on eligibility in the pre-filled Model 3 tax return.
Ineligibility – Who Cannot Benefit from IRS Jovem:
Taxpayers who have previously benefited from the Non-Habitual Resident (NHR) regime.
Those who have received the tax incentive for scientific research and innovation.
Individuals who have opted for the tax regime for returning residents.
Taxpayers whose tax situation is not regularised.
Implications and Benefits
These changes aim to make the scheme more accessible, ensuring that a greater number of young professionals can take advantage of this tax benefit. The removal of previous restrictions enhances the attractiveness of IRS Jovem as an incentive for talent retention within the country.
For further details, please consult your accountant.
