General Tax Rates
The income tax brackets (IRS) for 2025 have been updated, with a 4.6% increase in the limits of each bracket, surpassing the predicted inflation rate. The brackets and deductions are:
IRS Jovem
The IRS Jovem program has expanded significantly:
- Eligibility now extends to individuals up to 35 years old, including those in independent work.
- Beneficiaries no longer need to have completed a degree or educational program.
- The benefit duration increases to 10 years, starting the first year of income declaration.
- Exemptions are structured as follows:
- 100% in the 1st year
- 75% in the 2nd to 4th years
- 50% in the 5th to 7th years
- 25% in the 8th to 10th years
The income exemption is capped at 55 times the IAS value, equivalent to 28.009,30 EUR for 2025. Specific transitional rules ensure continuity for those already earning income, while exclusions apply to individuals benefiting from other tax regimes (e.g., NHR, ex-residents).
Employers can apply this benefit directly in withholding taxes upon notification by the employee.
For more personalized advice or assistance regarding your IRS obligations, feel free to contact us!