Decree-Law No. 48-A/2024 of 25 July amended the Municipal Property Transfer Tax Code (CIMT) and the Stamp Duty Code (CIS), adding an exemption from IMT and Stamp Duty (item 1.1 of the Stamp Duty General Table) for the first purchase of an urban property or autonomous unit intended exclusively for use as a primary and permanent residence by young people aged 35 or under.
Continuation of the questions and answers.
10. What if I already have a second home?
Anyone who has a second home, or a share in a property (for example in co-ownership), will not be entitled to this benefit.
It may, however, apply to people who have previously been owners, provided that was more than 3 years ago.
11. If the home stops being my primary and permanent residence, may I have to pay tax?
Yes. If someone buys a property and benefits from the exemption, and then stops using it as their primary and permanent residence within six years of the purchase, they will have to pay the corresponding IMT and Stamp Duty.
But there are exceptions. People who decide to sell the property before six years have passed since the purchase are protected. In addition to sales, the following cases are also covered:
- “A change in the composition of the household”, whether through marriage or civil partnership, divorce or an increase in the household;
- “A change of workplace to a distance of more than 100 km from the property, provided the property remains used exclusively for housing.”
12. Does this IMT and Stamp Duty exemption cover building a house?
No. The legislation states that the exemption covers “purchases of an urban property or an autonomous unit of an urban property intended exclusively for use as a primary and permanent residence”. In other words, it excludes the purchase of land for construction.
13. I am an immigrant. Can I also benefit from the measure?
All citizens who meet the requirements benefit from the exemption, regardless of nationality. You only need to have your tax address in Portugal.
14. How much does the deed cost?
The Government has also decided to exempt the payment of registry fees (emolumentos). These are precisely the documents issued and paid for when the deed is signed.
In the case of notaries, the fees they charge are not covered by the exemption.
15. How will the State guarantee work?
The State guarantee will be “available” to young people aged 18 to 35 buying their first primary and permanent residence.
However, unlike the IMT and Stamp Duty exemption, there are income limits to benefit from the State guarantee. Eligible young people may only have income that does not exceed the 8th IRS bracket. In 2024, this means €81,199 per year.
To be eligible, these young people also cannot own any property (or unit) and cannot have benefited from a State guarantee before.
In addition, the State guarantee will be limited to properties with a transaction value not exceeding €450,000, and the State guarantee can only be used for up to 15% of the property’s value.
16. Can I combine the IMT exemption with the State guarantee?
Yes. You can use the State guarantee and at the same time benefit from the IMT and Stamp Duty exemption.
Contact us to find out more.
