The Portuguese government has formalized a bill to be presented to the Portuguese Parliament that will exempt young people up to the age of 35 from paying IMT (municipal tax on onerous property transfers) and stamp duty when buying their first home.
The measure will apply to the purchase of first homes by young people and is intended to be linked to the value of the purchase and sale and not to the income of the buyers. Therefore, and without prejudice to the changes that the proposal may undergo in parliamentary discussion, the government wants the exemption from both taxes on the purchase and sale of real estate to apply to all deals involving transactions up to €316,772, regardless of income level.
IMT is the most expensive tax when buying real estate and its maximum rate is 8%. The exemption provided under these terms allows young people to save up to €14,686.
If the property is priced between €316,772 and €633,453, young buyers will also benefit from the €14,686 saving, with only the remaining amount being taxed.
It is the Portuguese government’s intention that after discussion and a parliamentary vote the changes to the law will come into force next August.
