New Measures for Young Taxpayers Announced by Portuguese Government

27 May 2024

This year, Portugal underwent general elections. We are diligently monitoring the implications of this political transition, particularly concerning tax and immigration matters.


On the 23rd of May 2024, the government formally announced a comprehensive set of measures targeting young taxpayers. These measures were structured around five key areas: tax reduction, housing, health, student accommodation, and student worker grants.


Regarding tax reduction, young taxpayers up to the age of 35 will be eligible for a Personal Income Tax reduction of up to 15%, dependent on their income level. This legislative proposal is set to take effect next year.


In the housing sector, the government intends to exempt young taxpayers under 35 from the Property Transfer Tax (Imposto Municipal sobre as Transmissões Onerosas de Imóveis - IMT) and the Stamp Tax on the purchase of their first permanent home. This exemption applies up to the fourth level of IMT, corresponding to property values up to €316,000.00. For properties valued between €316,000.00 and €633,000.00, a partial exemption will be applicable.


Concerning health, the government has extended the "Take Care" program to individuals up to the age of 30. This program addresses mental health issues among young people. The government will hire 100 psychologists, nutritionists, and nurses to make this extension. Additionally, 100,000 psychology appointments and 50,000 nutrition appointments will be made available for higher education students starting in September. Furthermore, menstrual products will be distributed free of charge in schools and health centres beginning in September.


Regarding student accommodation, initial measures have been announced, with further details to follow. The government will add 709 beds, strategically distributed to meet the needs of higher education students.


Student workers will be entitled to scholarships if their household's annual income does not exceed 14 times the minimum wage, amounting to an income threshold of €14,259.28 per year.


The Portuguese government is committed to implementing these measures to incentivise young taxpayers to remain in Portugal, enhancing its appeal as a place to live and work, and thereby reducing the need for economic emigration.



At LVP Advogados, we closely monitor government developments in our areas of expertise to ensure that we can offer our clients and readers the most up-to-date and knowledgeable information. 


Please do not hesitate to contact us if you require assistance with tax matters or any related issues. We are here to provide you with the support and assistance you need.

by Joana Loureiro Veríssimo 28 July 2025
Joana Loureiro Veríssimo | Lawyer
24 July 2025
A new National Unit for Foreigners and Borders (UNEF) has been created within the Public Security Police (PSP), taking over key responsibilities from the former SEF. UNEF will handle airport border control, visa issuance, foreign nationals oversight, and related operations.
by Danielle Avidago 18 July 2025
Danielle Avidago | Immigration Consultant
Short-term leases are lawful in Portugal if legal and factual rules are observed.
by Tomás Melo Ribeiro 17 July 2025
Due to stricter AL rules in urban Portugal, many owners now turn to short-term residential leases to earn legal rental income outside tourist accommodation laws.
On 16 July 2025, the Portuguese Parliament approved major changes to immigration law
16 July 2025
On 16 July 2025, the Portuguese Parliament approved major changes to the legal framework governing immigration (Law no. 23/2007). The reform ends the manifestação de interesse mechanism, tightens rules for job-seeker visas and family reunification, and sets a final deadline for transitional applications.
11 July 2025
The Portuguese Parliament has decided to postpone the vote on the proposed amendments to the Nationality Law until September 2025. The decision was taken in a meeting of the Committee on Constitutional Affairs, Rights, Freedoms and Guarantees, following pressure from several political parties who requested more time to assess the implications of the proposed reform. The delay allows for additional hearings with legal experts, immigrant associations and civil society representatives before a final vote is held in plenary session. The proposed reform introduces significant changes to the current legal framework for acquiring Portuguese nationality. Among the most impactful measures is the extension of the minimum legal residence period required before applying for naturalisation. Under the new proposal, this period would increase from the current five years to seven years for nationals of CPLP countries (Community of Portuguese Language Countries), and to ten years for applicants from all other countries. Another major change concerns the introduction of mechanisms to revoke Portuguese nationality . According to the proposal, naturalised citizens who are convicted of serious crimes — defined as those resulting in prison sentences of five years or more , within ten years of acquiring nationality — could see their Portuguese citizenship revoked by a court decision, based on a proposal from the Public Prosecutor’s Office. In addition, the reform would tighten the requirements for acquiring original Portuguese nationality through birth in Portugal. For children born in Portuguese territory to foreign parents, it would become mandatory that at least one parent has been residing legally in Portugal for a minimum of three years , instead of the current two years. Although the government initially intended to approve these changes before the summer recess, political consensus has not yet been reached. Left-wing parties have raised concerns regarding the constitutionality of retroactive revocation of nationality and the potential impact on the rights of long-term residents and immigrant communities in Portugal. In response, the parliamentary committee agreed to postpone the process and schedule a new round of expert hearings in early September. A final vote on the reform is now expected to take place later that month. Until then, the current version of the Nationality Law remains in force , including the five-year legal residence requirement for naturalisation. Applicants who meet this requirement and wish to apply under the current rules may still do so in the coming weeks.
Get a residence permit in Portugal via the EU Blue Card for skilled professionals.
by Sara Sbai Oliveira 11 July 2025
Law No. 53/2023 transposes the EU Blue Card Directive into Portuguese law, improving conditions for highly skilled non-EU nationals to live and work in the EU.
Portuguese law offers remedies, but claiming them requires legal and procedural know-how.
by Margarida Tempera 8 July 2025
Hiring a contractor in Portugal should be simple, but unmet terms can lead to financial loss and legal issues, especially for clients unfamiliar with local rules.
When an individual considers securing European citizenship, one country often stands out: Portugal.
by Danielle Avidago 7 July 2025
Portuguese nationality law requires more than just having a Portuguese spouse or grandparent—it also demands proof of a meaningful connection to Portuguese society.
More posts