Tax
IRS Jovem 2026: every tax benefit for young people under 35
Portugal now offers one of Europe's most generous packages for young workers and first-time homebuyers. From income-tax exemptions to a state-backed mortgage guarantee and they can all be combined.
Portugal has quietly assembled one of the most generous benefit packages in Europe for people under 35. Three separate measures: an income-tax exemption, a property-transfer-tax exemption, and a state mortgage guarantee that now stack on top of one another. This guide walks through each, with an interactive calculator so you can see the income-tax saving on your own numbers.
1. Youth income tax: IRS Jovem
Exemption is capped at €29,542 (55 × IAS 2026).
Who qualifies?
Age 35 or under (inclusive) at 31 December of the relevant tax year.
Not classified as a dependent for PIT purposes.
Tax situation fully regularized.
Since 2025, no academic qualification is required.
Incompatibilities
IRS Jovem cannot be combined with the Non-Habitual Resident (NHR) regime, the IFICI tax incentive (Art. 58-A EBF), or the Former Residents regime (Art. 12-A CIRS). The 10-year count begins in the first year you earned Category A or B income as an autonomous taxpayer, even if that predates 2025. The benefit is claimed annually by opting in on the Model 3 return.
2. Property-transfer tax exemptions: your first home
When you buy a property in Portugal you normally pay three things on top of the price: a property transfer tax (IMT), stamp duty (0.8%), and registration fees. Young buyers aged 35 or under purchasing their first owner-occupied permanent home can be exempt from all three.
How much is exempt (2026 thresholds)
Registration-fee exemption also covers the mortgage registration, provided the property value falls within the threshold.
Who qualifies?
Age ≤ 35 at the date of the deed.
Not classified as a dependent for PIT purposes in the year of acquisition.
Must not own or have owned any residential property in the prior three years
The property must become the buyer's permanent residence.
3. State guarantee on housing loans
This is the measure that tackles the biggest practical barrier: the deposit. Under Bank of Portugal rules, the maximum LTV for owner-occupied housing is 90%, meaning buyers need at least 10% in savings. The government provides a personal guarantee (fiança) to the bank covering up to 15% of the property value, effectively allowing 100% financing.
Borrowers aged 18 to 35, with tax residence in Portugal.
Annual taxable income not exceeding the 8th PIT bracket (approx. €81,199).
Must not own any urban residential property.
No outstanding debts to the Tax Authority or Social Security.
Must not have previously used this guarantee.
Transaction value must not exceed €450,000.
Putting it all together
The point that makes the Portuguese package genuinely distinctive is that all three benefits can be combined simultaneously:
IRS Jovem: reduced income tax for up to 10 years.
IMT + stamp duty exemption: no property-transfer taxes up to €330,539.
Registration-fee exemption: no fees on the property or mortgage registration.
State guarantee: up to 100% financing, no deposit required.
A young person can buy a home up to roughly €330,500 with no transfer taxes, obtain 100% financing without a deposit, and pay substantially reduced income tax for up to ten years.
Key legislation