Young taxpayers now eligible for automatic tax returns
The Ministry of Finance (Ministério das Finanças) confirmed that young people benefiting from the youth tax regime (IRS Jovem) will now be covered by the automatic tax return (IRS Automático). This change, effective this year, removes the requirement for manual filing for eligible taxpayers under the “Modelo 3” form. The measure aims to simplify the tax settlement process for younger residents.
IRS Jovem is a tax benefit that provides a partial exemption on employment income for young workers aged 18 to 26 during their first five years of work. It helps young professionals retain more of their earnings by reducing their income tax (Imposto sobre o Rendimento de Pessoas Singulares) liability. As of 2024, these taxpayers are eligible for the automatic tax return system, simplifying the annual filing process.
The automatic tax return (IRS Automático) is a system where the Portuguese tax authority pre-fills your annual income tax declaration using data provided by employers and banks. Taxpayers only need to verify the details and submit the form, which saves time and reduces the risk of manual errors. The service is available to residents with simple tax situations, including those now enrolled in the IRS Jovem program.
