IMT and Stamp Duty exemptions for Young People: everything you need to know
From 1 August 2024, young people up to the age of 35 who buy their first permanent home can benefit from exemption from IMT and Stamp Duty. The measure applies to properties up to 316,772 euros, and is partial for higher values up to 633,453 euros. This incentive aims to facilitate access to housing by reducing the tax costs of buying property.
In this article, we clear up the main doubts about this exemption, who can benefit, what the limits are and how the process works. If you’re considering buying your first home, here are the essential questions for taking advantage of this support.
When does the IMT exemption come into effect?
The exemption came into force on 1 August 2024. Any deed carried out after that date can benefit from the exemption, as long as the criteria are met.
Who can benefit from the IMT exemption?
From 1 August 2024, young people aged 35 or under who purchase their first permanent home can benefit from exemption from IMT and Stamp Duty. The exemption applies to properties whose value does not exceed €316,772 . For properties with a value between 316,772 and €633,453, the exemption is partial.
What is the maximum value of the property to obtain total exemption from IMT?
The total exemption applies to properties up to €316,772 . For properties with a value between €316,772 and €633,453, the exemption only applies up to the value of €316,772, and tax is levied on the excess. Above €633,453, there is no exemption.
If the value of the property exceeds €316,772, how much IMT will I pay?
If the property costs between €316,772 and €633,453 , you will only pay tax on the amount that exceeds €316,772. For example, if the property costs €350,000, you’ll pay tax on the excess €33,228.
Is there an income limit to qualify for IMT exemption?
There is no income limit for exemption from IMT and Stamp Duty. Any young person who fulfils the other requirements can benefit, regardless of their income.
What is the procedure for taking advantage of the IMT exemption?
The IMT and Stamp Duty exemption is applied automatically when the forms are issued on the Finance Portal, if the requirements are met. Check that all the documents are in order at the time of purchase.
If the deed was done before the measure was published, can I still benefit from the exemption?
No, the exemption has no retroactive effect. If the deed was done before 1 August 2024, you cannot benefit from the exemption.
If I buy a property with another person, and one of them already owns a house, what does the exemption look like?
If two people buy a property together and one of them already owns a house, the exemption only applies to the part of the buyer that fulfils the criteria. So 50% of the transaction will be exempt, and the other half will be subject to tax.
I’m 22 years old and still dependent. Can I get exemption from IMT?
No, young people who are still considered dependents for IRS purposes in the year of purchase will not be able to benefit from the exemption.
I already own a second home. Can I benefit from the IMT exemption?
No, the exemption does not apply to those who already own another home. The exemption is exclusive to the purchase of your first home.
Is it possible to be exempt from IMT and then have to pay the tax later?
Yes, if the property ceases to be your own permanent home within six years, you may have to repay the tax benefits received.
Does the IMT exemption also apply to properties under construction?
No, the exemption only applies to properties that have already been built.
I’m a foreigner. Can I benefit from the IMT exemption in Portugal?
Yes, as long as you fulfil the age requirements and are purchasing your first home in Portugal.
How much does the deed cost?
The cost of the deed varies, but the exemption from IMT and Stamp Duty significantly reduces the total cost of the purchase. The remaining costs are the usual ones for the deed and other possible administrative charges.
Can I combine the IMT exemption with other support measures, such as the public guarantee?
Yes, the IMT exemption can be combined with other support measures, such as the public guarantee for the purchase of a home. The public guarantee acts as insurance offered by the state to cover part of the mortgage.
How does the public guarantee for house purchase work?
The public guarantee is a mechanism that allows the state to assume part of the risk of the housing loan, facilitating access to finance for young people who fulfil the established criteria.
We hope this set of answers clarifies the main doubts about the exemption from IMT and Stamp Duty for young people buying their first home.
If you need help understanding how to benefit from this measure and make the property purchase process easier, leave us your details so that one of our experts can contact you.