Young IRS - How to Pay Less?

What is IRS Joven and how can you pay less? This is an essential question for many young people entering the labour market in 2024. You should know that the Portuguese government has launched a highly beneficial initiative for young people, IRS Jovem, which offers total exemption from IRS in the first year of employment for both employees and self-employed workers. So if you're looking to stay fully informed, visit the Finance Portal here. 

Who is Eligible for IRS Jovem?

In fact, this tax benefit is aimed at young people between the ages of 18 and 26 who have completed at least secondary education. In addition, young people up to the age of 30 who have completed a doctorate are also eligible. Clearly, IRS Jovem supports young people at the start of their careers, when incomes are typically lower, helping them to make their first savings.

How does the Young IRS Exemption work?

But how exactly can a young person benefit from IRS Jovem and thus pay less tax? Firstly, it's important to know that joining this scheme is not automatic. Legally, it is necessary for those interested to express their interest when submitting their IRS Form 3 - don't forget!

In the years following the first, the exemption system is gradually adjusted:

Second Year: Exemption of 75% from tax payable.

Third and Fourth Years: 50% exemption.

Fifth Year: Exemption of 25%.

In effect, this gradient of exemptions motivates young people to continue their professional careers with significant tax support in the early years.

Additional advantages of the IRS Joven

In addition to tax exemptions, the IRS Jovem offers flexibility. So if a young person works for a year and becomes unemployed the following year, they can still enjoy the tax benefits in the following years, as long as they meet the established age limit. This flexibility is crucial for adapting to career fluctuations for many young people.

Why Join the Young IRS?

In conclusion, if your question is - IRS Jovem - how can you pay less? You should definitely join this initiative. Young people can not only reduce their tax burden but also strengthen their future financial stability. In fact, if you are starting out in your career and want to maximise the return on your work, IRS Joven offers an excellent opportunity to grow financially in your first few years of employment. Obviously, we recommend that you don't let this opportunity to benefit from these advantages pass you by, ensuring that you express your interest in good time in your tax return.

Here at Serro & Andrade we can help.... Visit our website and get to know us better.