IRS Jovem 2026: every tax benefit for young people under 35.

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 — 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

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)

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 in the prior three years — any residential property.
• 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 state guarantee changes this — 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:

1. 01IRS Jovem — reduced income tax for up to 10 years.
2. 02IMT + stamp duty exemption — no property-transfer taxes up to €330,539.
3. 03Registration-fee exemption — no fees on the property or mortgage registration.
4. 04State 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