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.
1. Who can benefit from the IMT and Stamp Duty exemption?
The IMT and Stamp Duty exemption applies to young people aged up to and including 35 on the date of the purchase deed who, in the year of purchase, are not considered dependants for IRS purposes, even if they still live with their parents until they buy the home. To benefit, they must be buying their first home and may not own or co-own another property (even a second home), or have owned a property or unit in the three years prior to the deed.
2. What happens when the purchase is made by two people, but one is over 35?
In that case, the person over 35 will pay IMT and Stamp Duty and will not benefit from any exemption.
3. From when does the exemption apply?
From 1 August 2024. Anyone signing the deed from that date onwards can benefit from the exemption.
4. What do I need to do to benefit?
In principle, you do not need to do anything. The exemption is automatic.
5. I signed the deed before the measure was published. Can I still benefit from the IMT and Stamp Duty exemption?
No. The measure does not have retroactive effect, which means that those who have already bought a home cannot benefit from the exemption.
6. I am buying a home with someone who already owns a home. Can I benefit from the exemption?
Yes, but only the person who has never owned a home will benefit; the exemption does not apply to the person who already owned a home.
7. I am still a dependant. Can I benefit from the measure?
No. Taxpayers who, in the year of purchase, are considered dependants for IRS purposes cannot benefit from the measure, regardless of whether or not they live with their parents.
8. Is there an income limit to benefit from the IMT and Stamp Duty exemption?
No. This measure does not set any limit in that respect.
9. What are the limits on the value of the home to be purchased?
The full exemption only covers properties with a purchase price of up to €316,772 (transaction value of the property).
Above that amount, IMT and Stamp Duty are payable.
However, if the transaction value is between €316,772 and €633,453, IMT and Stamp Duty will only be charged on the difference, i.e. the amount exceeding €316,772 up to €633,453.
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