Tax exemption on home purchase for young people goes into effect on August 1.

Decree-law exempting IMT and Stamp Duty for young people was published, taking effect on August 1st.

The decree-law of the measure that will exempt young people from the taxes associated with buying a house, Municipal Tax on Onerous Property Transfers (IMT) and Stamp Duty (IS), has now been published in the Official Gazette. Check it out here.

The exemption that will apply to the purchase of the first home for young people up to 35 years old will take effect from August 1.

"The present decree-law will take effect on August 1, 2024", as stated in the diploma that came into force on July 27.  

The decree-law in question, promulgated last week by the President of the Republic, Marcelo Rebelo de Sousa, contemplates an exemption from IMT and IS for young people up to 35 years old who buy properties up to the 4th IMT bracket (316,772 euros). Between this value and 633,453 euros, IMT must be paid at the rate corresponding to the bracket in question (8%).  

In addition, in order to access this benefit, young people cannot own any property at the time, nor be considered dependents for IRS. 

The decree-law also establishes that young people will no longer benefit from the exemption/reduction of IMT fees if the property changes its purpose from the one established for the initial benefit within six years from the acquisition, except in the case of sale.

Are you young and looking to buy a house, taking advantage of the new Government support measures? The process can be complex, but with the right help, it can be much simpler! Contact a credit intermediary, such as Poupança no Minuto, which collects all the bank offers and helps you choose the best one on the market for you, at no cost. Simulate your new home loan now and start the process, saving money!