The Portuguese Government has made it easier for young buyers to get on the property ladder and purchase their first home in Portugal. This is through tax exemptions that translate to significant savings for first-time buyers.
An Introduction to the New Law
The new law eliminates Property Purchase Tax, known as IMT (Imposto Municipal Sobre as Transmissões Onerosas de Imóveis), and Stamp Duty, two taxes that need to be paid when buying property in Portugal.
The law aims to open up the market for young property buyers to get a foothold in the Portuguese property market, where increasing property prices have made it more difficult to buy property, particularly in Lisbon and other major cities.
Under the Programa de Apoio à Compra da Primeira Casa pelos Jovens (Support Program for Buying a First Home by Young People), the aim was to help young people with securing accessible housing, with exemptions for IMT and Stamp Duty, and the downpayment on the house for housing credit from banks.
Alongside this, the Portuguese Government aims to make financing more accessible, with a guarantee that enables bank financing for young people.
Taxes Eliminated: IMT and Stamp Duty
The following property taxes in Portugal have been eliminated for young first-term home buyers under the age of 35.
IMT
IMT is a property transfer tax that is applied to property purchases in Portugal and needs to be paid at the time of purchase. IMT generally ranges from 0 to 8 percent and depends on factors such as property type, value, location, and whether the property will be the primary or secondary residence.
Stamp Duty
Property transactions in Portugal require Stamp Duty to be paid at a rate of 0.8 percent. Under the new legislation, young first-time buyers are exempt.
What does this mean for young property buyers?Â
Young people under the age of 35 do not need to pay the IMT or Stamp Duty when buying their first home in Portugal, offering significant savings.
Elsewhere, the Portuguese Government is also looking to expand the housing supply to cope with increased demand for properties, and strengthening the function of the rental market. These steps look to make it easier for young buyers to purchase property in Portugal.
Casa do Largo, Modern Living in a Unique Neighborhood
If you are a young buyer seeking a prime property in Lisbon, then Casa do Largo may be the perfect choice.
A residential building located in the heart of the Portuguese capital, in the multicultural and vibrant Intendente, renowned as being one of the trendiest neighborhoods in the world, Casa do Largo blends the charm of historical apartments with modern finishes in a stand out location.
From Casa do Largo, it’s incredibly easy to get around the city, with excellent restaurants, bars, shops, and public transport connections.
Designed to suit a practical and comfortable lifestyle, this property and location are ideal for young buyers seeking to make a beautiful part of the city their home.
You can find out more about this property here.
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