Portugal Parliament passes law to combine tuition rebate with Youth Tax Credit

The Portuguese Assembly approved a bill sponsored by the Socialist Party (PS) with backing from Chega, allowing the state‑funded tuition rebate (prize salary) to be accumulated with the Youth Tax Credit (IRS Jovem). The vote saw the PSD, CDS‑PP and IL oppose, while the PCP abstained.

The legislation codifies a scheme introduced by the António Costa government in 2023 that lets young workers up to age 35 claim an annual cash payment for each year of higher‑education studies—€697 for a licence and €1,500 for a master’s—provided they remain employed in Portugal. The new law mandates that the rebate be payable each year for the length of the academic cycle and that the tax authority release the required electronic form by March 1 for at least three months. The PS estimates the program will cost €500 million annually by 2027. The bill also clarifies that the rebate is cumulative with the IRS Jovem regime, addressing previous administrative delays that left thousands of applicants unable to claim the benefit for 2025‑2026.