IRS

IRS Jovem for self-employed workers

By Simples IRS teamPublished 11 November 2026Updated 11 November 20264 min read

How much is exempt

Year of income	Exemption
1st	100%
2nd to 4th	75%
5th to 7th	50%
8th to 10th	25%

Annual exemption limit: 55 × IAS = €29,542.15 in 2026 (CIRS, article 12-B(5)). The percentage applies to all your work income, both employed and self-employed.

Conditions

Be 35 or younger on 31 December of the income year.
Not be a dependant of your parents (or of anyone else) on the IRS return.
Have your tax affairs in order (no unpaid tax debts) and never have used the special regimes for “residente não habitual” (non-habitual resident, NHR) or “ex-residentes” (former residents).
Not have, and never have had, the tax incentive for scientific research and innovation (IFICI, article 58-A of the Tax Benefits Statute, Estatuto dos Benefícios Fiscais). It is a lower-tax regime for people who move to Portugal and work in research or innovation. Anyone who has or has had this incentive cannot use IRS Jovem (CIRS, article 12-B(9)).
Be within your first 10 years of work income, counted from the 1st year you had it, even if that was before 2025.

How the 10 years are counted

What counts is the “ano de obtenção de rendimentos” (year in which you earned the income), not the year you opened activity or the year you first claimed IRS Jovem. According to the AT’s IRS Jovem leaflet (in Portuguese):

Years as a dependant do not count. If you filed your IRS together with your parents, that year is left out.
Years without work income do not count. A year without a salary or recibos verdes does not use up one of the 10 years (CIRS, article 12-B(3)).
Years in which you did not have to file an IRS return do not count.
Your age is checked every year. In the year you are 36 on 31 December, you are no longer entitled, even if you still have years left.

One of the cases in the leaflet: someone who had their first salary in 2022, aged 23, and always filed as the taxpayer (titular) is in their 5th year in 2026, with a 50% exemption. The years 2022 to 2024 count, even though the law was different at the time.

On recibos verdes

According to the Finanças, the exemption applies to the gross income of category B, that is, the total of your receipts, and not to the amount after the coefficient (binding ruling no. 28155, in Portuguese). Even when it is exempt, that income counts when working out the rate you pay on the rest (CIRS, article 12-B(4)).

Examples with 2026 figures

The exempt amounts were calculated with the same function as the calculator. We do not show the final tax, because it depends on each person’s deductions, household and other income.

1. First year: €18,000

100% exemption: €18,000 × 100% = €18,000 exempt. This is below the €29,542.15 limit, so none of this work income is taxed.

2. Third year: €24,000

75% exemption: €24,000 × 75% = €18,000 exempt. The remaining €6,000 is taxed as usual.

3. First year with high invoicing: €40,000

A 100% exemption would give €40,000, but the limit is €29,542.15. So €29,542.15 is exempt and €10,457.85 is taxed.

4. Sixth year: €30,000

50% exemption: €30,000 × 50% = €15,000 exempt and €15,000 taxed.

How to claim it: step by step on the Portal das Finanças

Between 1 April and 30 June, open the IRS return (Modelo 3) on the Portal das Finanças. See how to file IRS on recibos verdes.
In Annex B (Anexo B), in table 3E.1 (“anos de 2025 e seguintes”, years 2025 onwards), answer Sim (Yes) to the question about the IRS Jovem regime (Annex B instructions).
In table 4, declare the total of your receipts, without removing the exempt part. The AT applies the exemption itself in the calculation.
Run the simulation, check the result and submit.

You choose it every year, on the return (CIRS, article 12-B(1)). You can opt in any year in which you meet the conditions, and the percentage is always the one for the income year you are in, even if you did not opt in before. The AT lets you know in the pre-filled return or in automatic IRS (IRS automático) when you may be entitled to it (CIRS, article 12-B(8)).

Common mistakes

Declaring only the part that is not exempt: you declare the gross total, and the AT does the rest.
Counting the 10 years from 2025: earlier years of income also count.
Forgetting table 3E.1: without the answer “Sim”, there is no exemption.
Thinking it lowers Social Security: your contributions stay the same.
Forgetting the limit: the exempt part never goes above €29,542.15 a year, even in the 1st year.

Calculate with IRS Jovem

Frequently asked questions

Does IRS Jovem apply to recibos verdes?

Yes. It applies to income in categories A (employment) and B (self-employment).

Does IRS Jovem reduce Social Security?

No. It is an IRS exemption; Social Security contributions stay the same.

Is the exemption on the total of the receipts or after the coefficient?

On the gross total of your category B receipts, according to binding ruling no. 28155 from the Finanças.

Do I have to claim IRS Jovem every year?

Yes. You opt in on each IRS return, in table 3E.1 of Annex B, by answering “Sim” (Yes).

Do the years when I was a dependant count towards the 10 years?

No. Only the years in which you declared work income as the taxpayer count. Years without work income do not count either.

What is the exemption limit in 2026?

€29,542.15, which is 55 times the 2026 IAS (€537.13).

Official sources

Every figure on this page comes from these sources (official documents, in Portuguese). Updated on 11 November 2026