Are you under 35 and want to buy your first home?
The Youth Housing Program in Portugal, an initiative that aims to support young people in purchasing their first home, has generated positive expectations with the implementation of the “You have a future in Portugal” subprogram. This program is aimed at young people between 18 and 35 years old who want to buy their first home.
Find out here if this is your case and how you should proceed during the sales process.
YOUTH HOUSING:
Public Guarantee and IMT Exemption
Lounge Real Estate
april 2024
Source: UCI and Dourtor Finanças
Be between 18 and 35 years old;
Be tax resident in Portugal;
Have an annual income of up to the eighth IRS bracket (which, in 2025, corresponds to 83,697 euros per year);
Not own an urban building or an autonomous fraction of an urban residential building;
Have never benefited from this guarantee.
People under 35 years of age who purchase their first permanent home are exempt from the Municipal Property Transfer Tax (IMT) and, in this case, are also exempt from Stamp Duty (IS).
Public Guarantee
When is there a preemptive right?
Public Guarantee
The measure will have a maximum transaction value of 450 thousand euros.
WHO IS ENTITLED?
MAXIMUM TRANSACTION VALUE
IMT and Stamp Duty Exemption
When is there a preemptive right?
IMT and Stamp Duty Exemption
Emoluments
When is there a preemptive right?
Emoluments
There is also an exemption from the fees due for registering the acquisition of a property with a tax value of up to 316,772 euros (which includes an exemption from the fees due for registering a loan and a mortgage).
When only one of the purchasers meets all the requirements for exemption, the fees are reduced proportionally.
You can save up to 225 euros in registration fees if you buy with a mortgage. If bank financing and a mortgage are required, the savings can amount to 450 euros (225 euros of the purchase registration fees and 225 of the mortgage registration fees).
The public guarantee aims to facilitate young people's access to mortgage loans. With this guarantee, the State guarantees part of the financing to buy their first permanent home, up to a maximum of 15% of the value of the transaction.
The government acts as guarantor and so, in the event of default, up to a maximum of 15%, it assumes financial responsibility for that part, allowing young people up to the age of 35 to buy their first home without the need for an initial down payment and with financing of up to 100% of the value of the property.
HOW DOES IT WORK?
REQUIREMENTS
- The total exemption from IMT and IS applies to the purchase of a property up to 316,772 euros;
- If the purchase is between 316,772 and 633,453 euros, the exemption only applies up to the value of 316,772 euros, and tax must be paid on the remaining value;
- For purchases over 633,453 euros, it is not possible to claim exemption from IMT and IS;
- Fill in the IMT Model 1 on the AT portal;
EXPIRY OF THE EXEMPTION
- The property is put to a different use from that on which the exemption was based, such as renting or tourist activities, during the six years following the purchase, except:
- In the event of a sale;
- Change of place of work to a distance of more than 100 kilometers from the property, provided that it remains exclusively for residential purposes;
- Change in the composition of the household (due to marriage or de facto union, dissolution of marriage or de facto union or increase in the number of dependents), also in this case, provided that the property remains exclusively for residential purposes.
- If the property is not used as a permanent home within six months of the date of purchase.
- In cases where two people buy a house together, if one of the people already owns a house or if one of the people is over 35, the exemption becomes 50%;
- Not being considered a dependent for IRS purposes in the year of purchase, even if you live with your parents;
- Not being the owner or usufructuary of any other property at the time of purchase or at any time in the three years prior to the purchase of the first home.
1st Quarter 2025: Statistics Data
When is there a preemptive right?
1st Quarter 2025: Statistics Data
- Home purchases with a public guarantee accounted for 44% of loans to young people.
- In the first quarter, credit with a guarantee accounted for 9% of the number of contracts and 13% of the total amount of new home loans, the Bank of Portugal (BdP) revealed on Wednesday.
- Around 89% of housing loan contracts with a public guarantee for young people up to the age of 35 were 100% financed in the first quarter.
- The effort rate rose and the average value of the loans was 190,000 euros in the first quarter.
Are you under 35 and want to buy your first home?
The Youth Housing Program in Portugal, an initiative that aims to support young people in purchasing their first home, has generated positive expectations with the implementation of the “You have a future in Portugal” subprogram. This program is aimed at young people between 18 and 35 years old who want to buy their first home.
Find out here if this is your case and how you should proceed during the sales process.
Are you under 35 and want to buy your first home?
The Youth Housing Program in Portugal, an initiative that aims to support young people in purchasing their first home, has generated positive expectations with the implementation of the “You have a future in Portugal” subprogram. This program is aimed at young people between 18 and 35 years old who want to buy their first home.
Find out here if this is your case and how you should proceed during the sales process.
YOUTH HOUSING:
YOUTH HOUSING:
Public Guarantee and IMT Exemption
Lounge Real Estate
april 2024
Lounge Real Estate
april 2024
Source: UCI and Dourtor Finanças
Source: UCI and Dourtor Finanças
Be between 18 and 35 years old;
Be tax resident in Portugal;
Have an annual income of up to the eighth IRS bracket (which, in 2025, corresponds to 83,697 euros per year);
Not own an urban building or an autonomous fraction of an urban residential building;
Have never benefited from this guarantee.
Be between 18 and 35 years old;
Be tax resident in Portugal;
Have an annual income of up to the eighth IRS bracket (which, in 2025, corresponds to 83,697 euros per year);
Not own an urban building or an autonomous fraction of an urban residential building;
Have never benefited from this guarantee.
People under 35 years of age who purchase their first permanent home are exempt from the Municipal Property Transfer Tax (IMT) and, in this case, are also exempt from Stamp Duty (IS).
People under 35 years of age who purchase their first permanent home are exempt from the Municipal Property Transfer Tax (IMT) and, in this case, are also exempt from Stamp Duty (IS).
Public Guarantee
When is there a preemptive right?
Public Guarantee
The measure will have a maximum transaction value of 450 thousand euros.
The measure will have a maximum transaction value of 450 thousand euros.
WHO IS ENTITLED?
WHO IS ENTITLED?
MAXIMUM TRANSACTION VALUE
MAXIMUM TRANSACTION VALUE
IMT and Stamp Duty Exemption
When is there a preemptive right?
IMT and Stamp Duty Exemption
Emoluments
When is there a preemptive right?
Emoluments
There is also an exemption from the fees due for registering the acquisition of a property with a tax value of up to 316,772 euros (which includes an exemption from the fees due for registering a loan and a mortgage).
When only one of the purchasers meets all the requirements for exemption, the fees are reduced proportionally.
You can save up to 225 euros in registration fees if you buy with a mortgage. If bank financing and a mortgage are required, the savings can amount to 450 euros (225 euros of the purchase registration fees and 225 of the mortgage registration fees).
There is also an exemption from the fees due for registering the acquisition of a property with a tax value of up to 316,772 euros (which includes an exemption from the fees due for registering a loan and a mortgage).
When only one of the purchasers meets all the requirements for exemption, the fees are reduced proportionally.
You can save up to 225 euros in registration fees if you buy with a mortgage. If bank financing and a mortgage are required, the savings can amount to 450 euros (225 euros of the purchase registration fees and 225 of the mortgage registration fees).
The public guarantee aims to facilitate young people's access to mortgage loans. With this guarantee, the State guarantees part of the financing to buy their first permanent home, up to a maximum of 15% of the value of the transaction.
The public guarantee aims to facilitate young people's access to mortgage loans. With this guarantee, the State guarantees part of the financing to buy their first permanent home, up to a maximum of 15% of the value of the transaction.
The government acts as guarantor and so, in the event of default, up to a maximum of 15%, it assumes financial responsibility for that part, allowing young people up to the age of 35 to buy their first home without the need for an initial down payment and with financing of up to 100% of the value of the property.
The government acts as guarantor and so, in the event of default, up to a maximum of 15%, it assumes financial responsibility for that part, allowing young people up to the age of 35 to buy their first home without the need for an initial down payment and with financing of up to 100% of the value of the property.
HOW DOES IT WORK?
HOW DOES IT WORK?
REQUIREMENTS
REQUIREMENTS
- The total exemption from IMT and IS applies to the purchase of a property up to 316,772 euros;
- If the purchase is between 316,772 and 633,453 euros, the exemption only applies up to the value of 316,772 euros, and tax must be paid on the remaining value;
- For purchases over 633,453 euros, it is not possible to claim exemption from IMT and IS;
- Fill in the IMT Model 1 on the AT portal;
- The total exemption from IMT and IS applies to the purchase of a property up to 316,772 euros;
- If the purchase is between 316,772 and 633,453 euros, the exemption only applies up to the value of 316,772 euros, and tax must be paid on the remaining value;
- For purchases over 633,453 euros, it is not possible to claim exemption from IMT and IS;
- Fill in the IMT Model 1 on the AT portal;
EXPIRY OF THE EXEMPTION
EXPIRY OF THE EXEMPTION
- The property is put to a different use from that on which the exemption was based, such as renting or tourist activities, during the six years following the purchase, except:
- In the event of a sale;
- Change of place of work to a distance of more than 100 kilometers from the property, provided that it remains exclusively for residential purposes;
- Change in the composition of the household (due to marriage or de facto union, dissolution of marriage or de facto union or increase in the number of dependents), also in this case, provided that the property remains exclusively for residential purposes.
- If the property is not used as a permanent home within six months of the date of purchase.
- The property is put to a different use from that on which the exemption was based, such as renting or tourist activities, during the six years following the purchase, except:
- In the event of a sale;
- Change of place of work to a distance of more than 100 kilometers from the property, provided that it remains exclusively for residential purposes;
- Change in the composition of the household (due to marriage or de facto union, dissolution of marriage or de facto union or increase in the number of dependents), also in this case, provided that the property remains exclusively for residential purposes.
- If the property is not used as a permanent home within six months of the date of purchase.
- In cases where two people buy a house together, if one of the people already owns a house or if one of the people is over 35, the exemption becomes 50%;
- Not being considered a dependent for IRS purposes in the year of purchase, even if you live with your parents;
- Not being the owner or usufructuary of any other property at the time of purchase or at any time in the three years prior to the purchase of the first home.
- In cases where two people buy a house together, if one of the people already owns a house or if one of the people is over 35, the exemption becomes 50%;
- Not being considered a dependent for IRS purposes in the year of purchase, even if you live with your parents;
- Not being the owner or usufructuary of any other property at the time of purchase or at any time in the three years prior to the purchase of the first home.
1st Quarter 2025: Statistics Data
When is there a preemptive right?
1st Quarter 2025: Statistics Data
- Home purchases with a public guarantee accounted for 44% of loans to young people.
- In the first quarter, credit with a guarantee accounted for 9% of the number of contracts and 13% of the total amount of new home loans, the Bank of Portugal (BdP) revealed on Wednesday.
- Around 89% of housing loan contracts with a public guarantee for young people up to the age of 35 were 100% financed in the first quarter.
- The effort rate rose and the average value of the loans was 190,000 euros in the first quarter.
- Home purchases with a public guarantee accounted for 44% of loans to young people.
- In the first quarter, credit with a guarantee accounted for 9% of the number of contracts and 13% of the total amount of new home loans, the Bank of Portugal (BdP) revealed on Wednesday.
- Around 89% of housing loan contracts with a public guarantee for young people up to the age of 35 were 100% financed in the first quarter.
- The effort rate rose and the average value of the loans was 190,000 euros in the first quarter.
