Finance: Irs jovem news in Portugal

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.

The Tax and Customs Authority has introduced changes to the personal income tax (Imposto sobre o Rendimento de Pessoas Singulares or IRS) return forms for young workers. Starting April 1, those eligible for the Youth IRS (IRS Jovem) must use a new field in Annex A (Anexo A) to opt into the updated tax regime. Young tax-paying residents should ensure they use the correct codes to benefit from the significant tax exemptions available under the new rules.

The Tax and Customs Authority (Autoridade Tributária e Aduaneira) clarified that Non-Habitual Residents (Residentes Não Habituais or NHR) can cancel their status to benefit from the Youth IRS (IRS Jovem) regime instead. This option is available to those who have never utilized the NHR tax benefits and meet the age requirements for the youth scheme. Taxpayers should consult a professional to determine which regime offers greater savings before the April filing deadline.