IRS Automático Now Includes IRS Jovem Starting This Year—What Young Workers Need to Know

Portugal's IRS Automático system—the automatic tax filing feature that pre-fills returns for most taxpayers—has been expanded to include the IRS Jovem benefit starting with the 2026 tax season, which opens April 1. The change means young workers under 35 who qualify for the tax relief will no longer need to manually claim the benefit, streamlining the process for an estimated 300,000 taxpayers.

The announcement was made by Finance Minister Joaquim Miranda Sarmento in a SIC interview last week, though the change received little fanfare. It's a significant administrative improvement, however—particularly for younger expats and immigrants who may be less familiar with Portugal's tax system.

What Is IRS Jovem?

IRS Jovem is a tax benefit introduced in 2020 to help young workers ease into the tax system. It provides partial exemptions on employment income for workers under 35 who have completed secondary or higher education. The benefit phases in over several years, with the largest relief in the first year (50% exemption) and gradually declining over five to ten years depending on education level.

Previously, taxpayers had to manually indicate their eligibility when filing, and many missed out simply because they didn't know the benefit existed or how to claim it. By integrating IRS Jovem into the IRS Automático system, the tax authority (Autoridade Tributária e Aduaneira) is making the process opt-out rather than opt-in—a significant shift.

How It Works in Practice

When the IRS Automático portal opens on April 1, eligible taxpayers will see the IRS Jovem benefit already applied to their pre-filled return. Taxpayers simply need to review the calculation, confirm their details, and submit. No forms, no annexes, no extra steps.

That said, there are conditions:

• You must be under 35 years old in the tax year being filed (in this case, 2025).
• You must have completed at least secondary education (12th grade or equivalent) or higher.
• The benefit only applies to employment income (Category A), not self-employment, rental income, or investment gains.
• If you had gaps in employment or studied abroad, you may need to verify your education credentials with the tax authority.

For expats who moved to Portugal recently and meet the age and education criteria, this can be a welcome simplification. However, non-residents cannot benefit from IRS Jovem—you must be a Portuguese tax resident to qualify.

Why This Matters for Expats

Portugal's tax system can be intimidating for newcomers, and administrative complexity is a common complaint among foreign residents. The IRS Automático system has already made filing easier for most taxpayers, but young workers—many of whom are expats on tech visas, digital nomad permits, or early-career contracts—often fell through the cracks with IRS Jovem.

Now, the system does the work for you. It's not revolutionary, but it's progress.

That said, there are still pitfalls. If the tax authority has incomplete or incorrect data—common for people who recently moved to Portugal or worked remotely for non-Portuguese employers—the automatic calculation may be wrong. Always review your IRS Automático carefully, especially if your situation is complex.

Tax Season 2026: What Else to Know

The 2026 tax season (covering income earned in 2025) begins April 1 and runs through June 30. Late filers face penalties, and those who miss the deadline entirely can be fined up to €225.

Other recent changes to Portugal's tax system that may affect you:

• Non-residents and capital gains: The tax authority recently confirmed that non-residents cannot claim the capital gains reinvestment exemption when selling property.
• Crypto tax reporting: Platforms must now report transactions to the tax authority, and fines up to €22,500 apply for non-compliance.
• Housing tax relief: Portugal introduced a new housing tax package, though EU rules limit some measures.
• Scam alert: Fake tax authority emails and SMS messages are targeting taxpayers during IRS season—never click links in unsolicited messages.

For a complete overview of Portugal's tax rules for 2026, including residency, NHR successor regimes, and expat-specific considerations, see our Portugal Taxes 2026 guide.

The Bottom Line

IRS Automático now covers IRS Jovem. If you're under 35, a Portuguese tax resident, and have employment income, the benefit should appear automatically in your pre-filled return starting April 1. Check it, confirm it, submit it.

And if the system gets it wrong—or if your situation is complicated—don't hesitate to consult a tax professional. Portugal's tax rules are nuanced, and small mistakes can have costly consequences.

Related: Portugal Taxes 2026: Complete Guide for Expats and Residents | Tax Scam Alert: Fake Emails Target Portuguese Taxpayers During IRS Season | Portugal's New Crypto Tax Rules