The recently published Decree-Law No. 48-A/2024 brings long-awaited news for young Portuguese citizens: an exemption from the Property Transfer Tax (IMT) for those up to 35 years old. This measure comes at a time when access to housing has become increasingly difficult, with rising prices and more stringent credit conditions making homeownership a significant challenge for the younger generations.
The IMT exemption represents substantial savings, as this tax is one of the most significant expenses associated with purchasing a property. IMT is applied to the purchase price or the taxable value of the property, whichever is higher, and can account for a considerable percentage of the total transaction cost. With this new measure, young buyers can redirect the saved amount towards other expenses, such as the down payment, home improvements, or even creating a financial safety net for the future.
This benefit is available to young people between the ages of 18 and 35 who are purchasing their first permanent residence. Additionally, the property must fall within a government-set price range, ensuring that the exemption is targeted at affordable homes. It’s important to note that this measure also applies to purchase agreements made in 2024, allowing young people already in the buying process to take advantage of the exemption.
The implementation of this IMT exemption for young people is seen as a way to support their independence, making homeownership more accessible and encouraging younger generations to settle in Portugal. By easing the tax burden associated with buying a home, the government aims not only to improve young people’s living conditions but also to stimulate the real estate market.
To benefit from this exemption, young buyers should pay close attention to the requirements and conditions outlined in the decree-law. Additionally, it’s crucial to ensure that all necessary documentation is in order so the process can proceed smoothly. Consulting a specialized professional is also recommended to clarify any doubts and ensure that all steps are followed according to the current legislation.
This measure comes at a time when housing issues have been widely discussed in Portugal, with the need for solutions that allow young people to access the real estate market more fairly and sustainably. The IMT exemption is undoubtedly a significant step in that direction, offering a unique opportunity for young people to realize the dream of homeownership.
