Flash News NA 2025/01/17

Young PIT in Portugal from 2025.

Since January 1, 2025, the Young PIT in Portugal has undergone some significant changes introduced by the recently approved State Budget.

The new Young PIT regime is a tax benefit aimed at young workers and aims to reduce the tax on work income (PIT).

Main Changes:

1. Age Limit: The maximum age to benefit from the Young PIT has increased from 30 to 35 years.

2. Benefit Duration: The maximum duration of the benefit has doubled, from 5 to 10 years.

3. Access Criteria: Access to the regime no longer depends on the level of education.

4. Exemption Limit: The exemption limit has increased from 40 IAS (Social Support Index) to 55 IAS, approximately 28,700 euros.

Exemption Tiers:

• 100% in the 1st year of income.

• 75% from the 2nd to the 4th year.

• 50% from the 5th to the 7th year.

• 25% from the 8th to the 10th year.

To benefit from the Young PIT, eligible taxpayers must indicate this option in their annual income statement (Model - 3) and can request the monthly application of the benefit through the reduction of withholding tax with their employer.

For more complete information on this topic, you can also consult the following page of the Portuguese Government:

IRS Jovem: o que é e como funciona? - XXIV Governo Constitucional

If you still have any questions about how to benefit from this measure, do not hesitate to contact the human resources department of Nominaurea.