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 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**:
**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