Daniel Cardoso is an accountant and works at FA Accounting. With all the recent changes, it is important to explain some of them and detail their impact on the lives of taxpayers, as seen in this interview.

The IRS Jovem scheme was implemented to offer tax benefits to young workers in Portugal, partially exempting their income from dependent or independent work in the first years of activity. However, recent clarifications indicate that self-employed workers, known as “recibos verdes”, cannot benefit from this exemption through reduced withholding tax.

The Portuguese Tax Authority (AT) has recently issued detailed guidelines on the application of withholding tax under the IRS Jovem (Youth IRS) scheme. These guidelines aim to clarify the correct procedures for employers and young workers to benefit from the available tax exemptions.

HOW TO START INVESTING: A BEGINNER’S GUIDE

Recently, many young workers in Portugal have faced the decision between opting for the immediate reduction of IRS withholding at source or waiting for the annual refund, under the IRS Jovem regime. This program aims to alleviate the tax burden on the income of young people at the start of their careers, providing them with a financial incentive in the initial years of their professional activity.

With the new fiscal year on the horizon, Portuguese taxpayers can expect significant changes in their monthly income. The IRS (Personal Income Tax) withholding tables for 2025 promise to bring some relief to the wallets of workers and pensioners. To help us better understand the practical impact of these changes, we spoke with Daniel Rocha Cardoso, Partner at FA Accounting & Management, who shares his analysis of what these changes represent for taxpayers and companies, as well as the challenges that still persist in the Portuguese tax system.