In 2024, the Portuguese government implemented a series of measures aimed at facilitating access to housing for young people up to the age of 35. These initiatives aim to support the purchase of a first home by offering more favourable conditions and tax incentives.
Public State Guarantee for Housing Loans
One of the main measures is the introduction of a personal State guarantee, which allows young people to obtain financing of up to 100 per cent of the value of their first permanent home. This guarantee acts as a surety provided by the State, covering up to 15 per cent of the initially contracted capital, should the borrower be unable to meet the agreed payments.
Eligibility conditions
To benefit from this guarantee, applicants must fulfil the following requirements:
- Age: Between 18 and 35 years old (inclusive)
- Residence: Tax residence in Portugal.
- Tax and Contributory Status: To be in good standing with the Tax Authorities and Social Security.
- Income: Earn income up to the 8th IRS bracket (currently, annual income up to €80,000).
- Property: Do not own any residential property.
- Benefit History: Not to have previously benefited from the State's personal guarantee under Decree-Law 44/2024.
In addition, young people up to the age of 35 can benefit from significant tax exemptions when purchasing their first home:
- Municipal Property Transfer Tax (IMT): Total exemption for properties up to €316,772.
- Stamp Duty: Exemption on the purchase and associated housing loan.
- Notary and Registry Fees: Exemption or reduction in the costs associated with registering the purchase and mortgage.
Example:
House Purchase Simulation for Young People up to 35 Years Old
Property value: 200.000€
Without tax benefits:
- IMT: 4.910,81€
- Stamp Duty: 2.680€
- Total: 7.590,81€
- Total exemption from IMT and Stamp Duty
- Total: 0€