Young Brazilians will soon have the opportunity to benefit from a significant reduction in income tax in Portugal, as outlined in the recently proposed state budget for 2025. This initiative aims to retain young Portuguese citizens and attract young foreigners, including Brazilians, to live and work in the country.
The Portuguese government submitted a proposal to the Assembly of the Republic on October 10, 2024, which includes a modification to the income tax structure for individuals aged 35 and under. This change is designed to encourage young people to remain in Portugal and to attract those who have emigrated back to the country.
Under the new proposal, young residents, including Brazilians who meet the residency requirements, will enjoy generous tax benefits including, no income tax (IRS) due in the first year, increasing only to 25% for the fourth year, eventually rising to 75% of standard rates, in the eighth to tenth year.
To qualify for this tax reduction, the tax payer must meet specific criteria, including being under 35 years old and having a taxable income of less than c. €28,000.Currently, there is a tax reduction for young individuals, but it only lasts for four years.