The IRS Jovem program is currently available to young foreign taxpayers looking to relocate to Portugal. This personal income tax benefit can apply to both returning Portuguese nationals and foreign individuals who choose to make Portugal their residence.
The program is already in effect, but the new government aims to introduce revised regulations to make it more inclusive. These changes will be voted on October 31, with the final vote scheduled for the end of November.
The goal of this program is to attract young foreign talent and investment to Portugal while retaining local talent. However, the specific conditions for foreigners to prove their eligibility remain unclear.
Currently, the tax benefit lasts for 5 years and includes a decreasing tax break. To qualify, taxpayers must meet the following criteria: they must have completed secondary education or higher between the ages of 18 and 26, or hold a PhD (eligibility extends up to age 30), and file separate tax returns from their parents.
Taxpayers can benefit from this program until the age of 35.
The new government plans to introduce three significant changes to the regime:
1. Extend the benefit period to 10 years.
2. Widen the eligibility age to 35 years, regardless of educational qualifications.
3. Increase the income threshold.
We will wait until the end of November to learn more about the changes to this tax regime.
