As of August 1, 2024, residents in Portugal aged 35 and under purchasing their first permanent home benefit from a full exemption on the Municipal Property Transfer Tax (IMT) and Stamp Duty (IS).
This initiative, titled "IMT Jovem" (Youth IMT), is tailored for young adults not classified as dependents for IRS purposes in the year of the home purchase. This applies even if they reside with their parents at the acquisition time.
Eligibility is restricted to the purchase of pre-existing residential properties, such as houses or apartments. Additionally, eligible homebuyers must not currently own, nor have owned any property in Portugal during the three years before the purchase.
This exemption is universally applicable to all qualifying young individuals, regardless of nationality or annual income.
Exemption Limits:
The total exemption from IMT Tax and Stamp Duty applies only to properties intended for permanent residency with a purchase price up to €316,772.
For properties priced up to €633,453, the full exemption on the IMT Tax and Stamp Duty applies exclusively to the portion up to €316,772.
Special Conditions for Couples:
If only one member of a purchasing couple is under 35, the exemption applies to half the tax amount that would otherwise be due. Each individual’s eligibility is assessed separately, with each member being considered individually for half of the exemption.
This measure supports young adults in establishing their first home, making homeownership more accessible for the younger generation in Portugal.
Comments