IRS Jovem is a Portuguese tax benefit designed to reduce the tax burden on young workers during the early years of their career. This article explains who qualifies, how long it lasts, and what happens when it expires.
Who is eligible?
To qualify for IRS Jovem (Art. 12.º-B CIRS), you must meet the following conditions:
Age: You must be between 18 and 35 years old
Education: You must have completed at least a secondary education qualification (ensino secundário) or equivalent
Not a dependent: You cannot be claimed as a dependent on someone else's tax return
Income type: The benefit applies to Category A (employment) and Category B (self-employment) income
How the benefit works
IRS Jovem provides a partial tax exemption on eligible income. The exemption percentage and duration have changed over the years. Under the current rules (as updated by the 2025 State Budget):
Year 1: 100% exemption (up to 55x IAS)
Years 2-4: 75% exemption (up to 55x IAS)
Years 5-7: 50% exemption (up to 55x IAS)
Years 8-10: 25% exemption (up to 55x IAS)
The IAS (Indexante dos Apoios Sociais) is a reference value updated annually. The exemption cap is calculated as 55 times the IAS value for that year.
Note: These percentages and durations may differ depending on when you first became eligible. Earlier versions of the law had different structures (e.g., 5-year benefit with different percentages). The rules that applied when you first claimed the benefit generally continue to apply to you.
Duration: 10 years total
The IRS Jovem benefit runs for a maximum of 10 years from the year you first earn eligible income after completing your qualification. The years do not need to be consecutive — you can opt in or out each year. Once you've used up all 10 years, the benefit is exhausted and your income is taxed at standard progressive rates.
What "expired" means in FIZ
If FIZ shows the warning "IRS Jovem benefit period (10 years) has expired," it means:
Based on the information you provided (birth date, qualification completion date, first year of income), you have already used all 10 eligible years
The IRS Jovem exemption cannot be applied to your current year's income
Your income will be taxed at the standard progressive rates
This is not an error — it simply means the benefit period has ended.
Common questions
Can I extend the benefit beyond 10 years? No. The 10-year period is the legal maximum and cannot be extended.
What if I didn't claim IRS Jovem in some years — do those years still count? No. Years in which you did not opt in do not count toward the 10-year total. Only years in which you actually claim the benefit are counted.
I changed jobs / became self-employed — does the benefit reset? No. The benefit is tied to you as a taxpayer, not to a specific employer or activity.
Legal references: - Art. 12.º-B CIRS (IRS Jovem) - Lei do Orçamento do Estado (State Budget Law) — check the applicable year for specific percentages