Young person receiving 1,100 euros saves almost 10,000 euros in IRS in 10 years.
Simulations conclude that a young worker starting a job in 2025, with a salary of 1,100 euros, will pay 9,924 euros less in IRS over 10 years compared to a taxpayer who does not have access to the new young IRS regime.
New young IRS regime will allow savings of thousands of euros.
A young person who starts working in 2025 and earns a salary of 1,100 euros can save almost 10 thousand euros in IRS over 10 years with the new young IRS regime, according to simulations by Deloitte, on News at the Minute. This regime, now proposed in the State Budget for 2025 (OE2025), will extend the tax benefit for up to 10 years for young people up to 35 years old.
In the first four years, a worker with a salary of 1,100 euros will be exempt from IRS, starting to pay taxes from the 5th year. Between the 5th and 7th year, they will pay 203 euros of IRS, and in the last three years they will pay 739 euros annually, totaling 2,824 euros in taxes over the 10-year period. In comparison, a worker with the same salary who does not qualify for the Young IRS regime would pay 12,748 euros in the same period, resulting in a difference of almost 10 thousand euros.
For higher salaries, the savings are even greater. A young person with a salary of 1,500 euros would pay 6,962 euros in income tax over 10 years, while a worker without access to the system would pay 24,403 euros. With a salary of 3,000 euros, the young person would pay 38,238 euros, compared to 89,966 euros for those not benefiting from the system.
It should be noted that the simulations in question consider a single worker, with no dependents and general family expenses of 250 euros.
The new regime provides for a progressive exemption: 100% in the first year, 75% in years 2 to 4, 50% in years 5 to 7, and 25% in the last three years. In addition, throughout this period, the income limit that can access the exemption remains at 55 IAS (around 28 thousand euros of annual taxable income).
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