Can you use Portugal's IRS Jovem exemption for people up to 35 after moving there?

Checked on 2026-10-25

Portugal's income tax code partly exempts employment and self-employed income of taxpayers up to 35 who are not dependants, for their first 10 years of earning, if they opt for it in the tax return. The exemption falls from 100% to 25% over the years. Anyone who has used NHR or IFICI cannot use it.

Key facts

What	The law says	Source
Who	Taxpayers up to 35 years old who are not dependants	Código do IRS, art. 12-B.1
Which income	Employment income (category A) and business and professional income (category B)	Código do IRS, arts. 1 and 12-B.1
How	By opting for it in the annual income tax return	Código do IRS, art. 12-B.1
How long	The first 10 years of earning income	Código do IRS, art. 12-B.1 and 12-B.3
How much	100% in year 1; 75% in years 2–4; 50% in years 5–7; 25% in years 8–10	Código do IRS, art. 12-B.5
Cap	55 times the IAS	Código do IRS, art. 12-B.5
Who is excluded	Current or former NHR or IFICI beneficiaries; anyone who opted for the ex-resident regime (art. 12-A); anyone whose tax situation is not regularised	Código do IRS, art. 12-B.9

How the years count

The exemption applies from the first year you opt for it and in the next nine years in which you earn income and opt for it, without going past the age limit (art. 12-B.3(a)). A year with no category A or B income doesn’t count: the exemption picks up again for the remaining years, until you reach 10 years in total, still within the age limit (art. 12-B.3(b)).

For people who had already earned income before the current wording took effect, a transitional rule in Lei n.º 45-A/2024 (art. 116.2), reproduced by the tax authority, places them on the scale at the year that follows the number of years of category A or B income they already had, not counting years in which they were a dependant.

Who cannot use it

The law excludes anyone who:

benefits or has benefited from the non-habitual resident (NHR) regime;
benefits or has benefited from IFICI (EBF, art. 58-A);
opted for the ex-resident regime in art. 12-A;
does not have their tax situation regularised (art. 12-B.9).

So a person who moves to Portugal and registers for IFICI cannot also use IRS Jovem.

The tax authority must tell taxpayers they may qualify, in the automatic tax return or by pre-filling the return (art. 12-B.8).
The exempt income is still aggregated for the purposes of article 22.4 of the code (art. 12-B.4).

Sources

Change history

2026-10-25: Page created

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