Recently, the government approved a new law that exempts young people up to 35 years old from paying IMT (Municipal Tax on Property Transfers) and Stamp Duty on the purchase of their first own and permanent home. This measure, part of the "Tens Futuro em Portugal" plan, aims to facilitate access to housing for young people and should come into force from August 1, 2024.
Main Aspects of the Law:
Total IMT Exemption
- The exemption is applied to properties with a value of up to 316 thousand euros (corresponding to the fourth IMT bracket).
- For properties between 316 thousand euros and 633 thousand euros, there is a partial exemption from IMT, and only the amount above 316 thousand euros is due.
- Properties with a value greater than 633 thousand euros are not eligible for the exemption.
Stamp Duty Exemption
- In addition to the IMT exemption, young people also benefit from the exemption from Stamp Duty, applicable under the same conditions as the IMT.
Exemption from Fees
- The measure also includes the exemption from fees due for the registration of acquisition and for the transfer of the property, for properties up to 316,722 euros.
Public Guarantee
- A public guarantee of up to 15% of the value of the property was created, aimed at facilitating the granting of housing loans to young people with incomes up to the eighth IRS bracket (81,199 euros of annual taxable income). This guarantee is applicable to properties with a value of up to 450 thousand euros.
Porta 65 Youth Program
- Changes were introduced to the Porta 65 Jovem program, eliminating the maximum rent as an exclusion factor and allowing the application before the conclusion of the lease agreement. The program will now also have a monthly cycle application system.
Frequently Asked Questions
Who can benefit from this exemption?
Young people aged 35 or under on the date of the deed of the house can take advantage of this exemption. To be eligible, they must not be considered dependents in the household and cannot have owned any property in the previous three years.
Are there any restrictions on the type of property to apply the exemption?
Yes. The total exemption from IMT and IS applies to properties up to the value of the fourth IMT bracket, that is, up to 316,772 euros. For properties up to 633,453 euros, the exemption is partial, with the corresponding rate of 8% applying. For houses above this value, there is no exemption.
What is the procedure for requesting this exemption?
Young people or their representatives must request the guides at the Tax Office, which will be delivered at the time of the deed. If the exemption is applicable, the IMT guides will already have the value zeroed.
If only one member of a couple is 35 or younger, is the exemption still valid?
Yes, the exemption still applies, but only half of the tax amount will be exempt, since only one of the members of the couple meets the requirements.
How is the exemption calculated if one of the members of the couple already owns a property?
The exemption applies only to the member of the couple who does not yet have property in their name.
What happens if the young person already has an inherited house?
In this case, the young person loses the right to exemption. To be eligible, you cannot have owned another dwelling in the previous three years, even if it was by inheritance or gift.
Are deeds made before August 1, 2024 covered by the exemption?
No. The exemption only applies to houses deeded from August 1, 2024.
Are there any income restrictions to access the IMT and IS exemption?
No. As long as the young person meets all the requirements, he can benefit from the exemption regardless of income. However, for those who want the public guarantee in the housing loan, the income cannot exceed the 8th IRS bracket (€81,199.00).
Does the exemption apply to houses under construction?
No. The exemption is only for the purchase of houses that have already been built.
Under what circumstances can the exemption be lost?
The exemption may be forfeited if the house ceases to be the primary residence within six years of the date of purchase. There are exceptions, such as the sale of the house, changes in the household (marriage, divorce, de facto union, birth of children) as long as it continues to be used as housing, or change of workplace to more than 100 km from the house, remaining as housing.
These measures represent a significant effort by the Government to improve the conditions of access to housing for the young population, promoting stability and encouraging the purchase of the first home. For more details, interested parties can consult the official website of the Government of Portugal