en 
The Government is expected to approve the reduction of the IRS Jovem, which provides for a reduction of two-thirds of the rates currently applied, at the Council of Ministers on Thursday.
The information was provided by the newspaper ECO, which indicated that the package should establish a maximum tax of 15% for taxpayers up to the age of 35, except those who fall into the last bracket.
The measure should come into force in 2025, as part of a package dedicated to youth that will also include exemption from IMI and Stamp Tax on the purchase of the first residence by young people up to the age of 35, on properties worth up to 316 thousand euros, and the public guarantee to help finance up to 10% of the acquisition.
Last week, the Minister of Finance, Miranda Sarmento, argued that the IRS reduction promised by the Government is "more ambitious" than the measure that has been in force since the beginning of 2024, but clarified that it will be around 200 million euros.
In an interview with RTP, Miranda Sarmento clarified that the 1,500 million euros of IRS relief mentioned by the Prime Minister this Thursday, at the beginning of the debate on the Government's program, will not be added to the approximately 1,300 million euros of IRS reduction included in the State Budget for 2024 (OE2024) and already in force.
"Our proposal is for young people up to the age of 35, with the exception of the last income bracket", he said, specifying that it covers all young people up to the age of 35, regardless of educational qualifications.
These young people "will pay a third of the IRS of what they pay today", adding that the regime applies whether they start working at 18 or 20 years of age.
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The tax reduction should be across the board. Is a struggling 40 year-old with kids less deserving of a tax cut than her single childless younger brother still living with the parents?
The biggest problem with the housing crisis is lack of supply. Foreign corporations, non-resident buyers and all who have unoccupied second/vacation homes (or those occupied fewer than 6 months per year) should have their IMI 10x what is charged to residents.
As for the youth home buying subsidied, we don’t need additional incentive for mom and dad to buy houses and apartments under the name of their kids in order to get subsidies and tax reductions. Housing should be LIVED IN and not acquired and left unoccupied.
Also, create a judicial process outside the current backlogged dysfunctional court system, to quickly resolve landlord-tenant disputes. This will give confidence to people who want to rent their homes out but are afraid of deadbeats, squatters, non-payers, fraudsters.
And while we’re at it, let’s reform the property inheritance laws, where 17 grandchildren and 23 great grandchildren own a property that’s been left vacant for 50 years and has become a ruin/eyesore because a few of them won’t agree to the sale. Unoccupied homes with no current utility connections and back taxes owed will be acquired by the state and auctioned after X years. Funds will be escheated and held in abeyance for 20 years awaiting legitimate claims. And great grand-nephew João can make a claim against the state 15 years later, but not a claim against the new owners.
By Shrin from Lisbon on 22 May 2024, 22:37
I'm not in favour of age-restricted benefits, especially of such a huge amount. Income tax should be cut for everyone, by a smaller amount so as not to jeopardise the budget.
By Billy Bissett from Porto on 23 May 2024, 11:25
I totally agree with SHRIN.
Well said and I hope somebody in Govt reads it !!
By L from Other on 23 May 2024, 16:10
Yet another bandaid for a gaping wound. Is there no one on either side of the Portuguese political swamp who can plan, strategise, implement and monitor effectively?? Every decision taken by a politician in Portugal is made one hour after the horse has run from the stable. Insanity....over and over.
By Bruce from Lisbon on 24 May 2024, 07:59
Excellent points by Shrin.
Inheritance tax really does need reform. But you could partly solve that problem too through very high IMI rates on empty properties. Enforcement would need some thought but simply having such laws in place would be a good start
By Tom from Lisbon on 25 May 2024, 10:37