Portugal introduces tax benefits for young people

24.10.2024 Portugal plans to introduce tax breaks for young people under 35, including foreign workers. The government plans to abolish the existing 15% income tax limit for people aged 18 to 35 and replace it with a progressive rate.

Anyone coming to Portugal can use IRS Jovem for all ten years, even if they have already started working in another country.

Thus, young people earning up to €28,000 per year will be completely exempt from income tax in their first year of work.
The tax burden will gradually increase over the next 10 years.

From the 2nd to the 4th year, they will be exempt from 75% tax, from the 5th to the 7th - from half, and from the 8th to the 10th - from 25%.
The proposal is being introduced in order to attract and retain talented personnel in the country.


Link to the source: https://www.jornaldenegocios.pt/economia/detalhe/jovens-vindos-do-estrangeiro-com-acesso-direto-ao-i...