THE BENEFITS OF BUYING A FIRST HOME FOR YOUNG PEOPLE AGED 35 AND UNDER

Portugal has introduced a number of measures to support young people aged 35 and under in purchasing their first home. 

These include exemptions from IMT and Stamp Duty, reductions in property registration fees, and a State guarantee for mortgage financing.

A) EXEMPTION FROM IMT AND STAMP DUTY
Young people aged 35 or under may qualify for an exemption from Municipal Property Transfer Tax (IMT) and Stamp Duty when purchasing their first permanent home.

The main requirements are:
- the purchaser must be 35 or under at the time of completion;
- the property must be acquired as the purchaser's permanent home;
- the purchaser must not have previously owned a residential property;
- the purchaser must not have been regarded as a dependant for IRS purposes in the year of purchase.
The exemption applies regardless of the purchaser's nationality or income, provided that all statutory requirements are met.

Property value
The exemption applies in full to properties purchased for up to €316,772.

For properties priced between €316,772 and €633,453, the exemption applies to the first €316,772, with IMT and Stamp Duty payable on the excess.

Properties purchased for more than €633,453 do not qualify.

The property must be used as the purchaser's permanent home within six months of acquisition and must generally remain so for six years.
Where only one member of a couple meets the eligibility requirements, the exemption applies proportionately to that purchaser's share.
Certain exceptions may apply where the property ceases to be the purchaser's permanent home, including in cases involving marriage, divorce, changes in household circumstances or a change of workplace more than 100 kilometres from the property.


B) EXEMPTION FROM PROPERTY REGISTRATION FEES
Those who qualify for the IMT and Stamp Duty exemption may also benefit from an exemption from property registration fees, including mortgage registration fees.

When using the Casa Pronta service, discounts of €225 or €450 may apply, depending on whether only the purchase or both the purchase and mortgage are registered.


C) STATE PUBLIC GUARANTEE FOR MORTGAGES
Young people may also benefit from a Portuguese State guarantee designed to facilitate mortgage financing of up to 100% of the purchase price.

The main eligibility requirements include:
- being aged 18 to 35;
- having tax residence in Portugal;
- annual income of less than €80,000;
- purchasing a first permanent home;
- a purchase price of up to €450,000;
- not owning another residential property;
- having no outstanding tax or social security debts.

The State guarantee may cover up to 15% of the loan amount, allowing participating banks to potentially finance up to 100% of the purchase price, subject to their usual lending and affordability requirements.

The guarantee applies to eligible mortgage agreements entered into by 31 December 2026 and is valid for 10 years from the date of the credit agreement.

The State guarantee can be combined with the IMT and Stamp Duty exemptions.

Legal framework: 
- Law No. 30-A/2024;
- Decree-Law No. 48-A/2024;
- Circular No. 40123/2024;
- Article 13 of the CIRS;
- Portaria No. 236-A/2024/1