Portugal wants to become a tax haven for young people. The intention of the new Portuguese government is to exempt all or almost all taxes paid on the salaries of people aged 25 to 35. Which means that young Spaniards will see their benefits cut in half compared to their Portuguese neighbors.
A practical example. On the one hand there is Anthonya young Spaniard who earns the average salary, i.e. 2,500 euros gross per month. A figure which reduces to 1,900 after deduction of deductions, which constitute their real income. On the other hand, Daisya Portuguese woman of the same age as Antonio and who also earns the average Portuguese salary, around 1,700 euros. If this measure comes to fruition, you will only pay social security contributions, without taxes. Your benefits would then be 1,500 euros. In this way, the income difference between the Spanish and the Portuguese is reduced by half.
The initiative, presented Thursday before the Assembly of the Republic, is part of the state budgets for next year prepared by the current conservative government of Luis Montenegro. A proposal which, on the other hand, We don’t know if he can move forward. given the parliamentary fragility that the Portuguese territory is currently experiencing.
What is clear is that this ‘IRS Joven’ -IRS is the equivalent of the Spanish IRPF- will benefit all young people. during his first decade on the job market. However, while this seems like good news, there is a but. And this benefits those who earn the most much more, since they are the ones who benefit the most from tax forgiveness.
To this proposal, inherited from the time when he was Prime Minister of the socialist António Costa, are added other initiatives that will also benefit young Portuguese people. Among them are the restructuring of the accessible housing program for this sector of the population, tax exemptions and public guarantee on mortgage loans for the purchase of housing up to 35 years old, as well as a free transport subscription up to 23 years old and a subscription of 20 euros per person. months to use most of the country’s rail services.
