07.11.2025
Discover how public guarantees and tax exemptions in Portugal are making it easier for young buyers under 35 to get a home loan.
In 2024, the Portuguese government introduced new measures to make it easier for young people under 35 to buy their first home. With government-backed mortgage guarantees and significant tax exemptions, the cost of getting started has dropped — and the door to home ownership is now more open than ever.
If you're thinking about buying your first home with a mortgage, this could be the right time to move forward.
What changes with the State Guarantee for young homebuyers?
The key change is the possibility of getting up to 100% financing on your first primary residence, thanks to a State personal guarantee. This guarantee works like a public guarantor, covering up to 15% of the loan amount if the borrower is unable to meet the repayment obligations.
In 2024, the Portuguese government introduced new measures to make it easier for young people under 35 to buy their first home. With government-backed mortgage guarantees and significant tax exemptions, the cost of getting started has dropped — and the door to home ownership is now more open than ever.
If you're thinking about buying your first home with a mortgage, this could be the right time to move forward.
What changes with the State Guarantee for young homebuyers?
The key change is the possibility of getting up to 100% financing on your first primary residence, thanks to a State personal guarantee. This guarantee works like a public guarantor, covering up to 15% of the loan amount if the borrower is unable to meet the repayment obligations.
This measure is already in force under Decree-Law no. 44/2024.
Who is eligible for the guarantee?
To benefit from the State-backed guarantee, applicants must meet the following criteria:
- Be aged between 18 and 35 (inclusive);
- Have fiscal residence in Portugal;
- Have their tax and social security status regularised;
- Earn up to the 8th IRS income bracket (currently up to €80,000/year);
- Own no residential property;
- Not have previously benefited from this guarantee.
- Be intended for permanent residence;
- Have a transaction value of €450,000 or less.
The new legislation also includes financial relief for eligible buyers:
- IMT (Property Transfer Tax): full exemption up to €316,772;
- Stamp Duty: exemption on both purchase and mortgage contract;
- Notarial and registration fees: exemption or reduction.
Practical example: how much can you save?
Let’s say you’re buying a home for €200,000:
Without tax benefits:
- IMT: €4,910.81
- Stamp Duty: €2,680
- Total cost: €7,590.81
- IMT: €0
- Stamp Duty: €0
- Total cost: €0
How to move forward with confidence?
These government measures are a valuable boost — but buying a home and applying for a mortgage still require careful planning. To ensure access to the best mortgage solutions — with competitive spreads, flexible terms, and lower fees — it’s wise to work with an authorised credit intermediary.
At Credit Place we support young buyers with personalised guidance, free loan simulations, and access to offers from multiple banks — all in one place, and with complete transparency.
Still looking for your ideal home? Visit our trusted real estate partner, ENTREPORTAS, specialists in Northern Portugal.