{"id":451,"date":"2025-05-26T00:00:00","date_gmt":"2025-05-26T00:00:00","guid":{"rendered":"https:\/\/exs.suba-agency.com\/isencao-de-imt-e-imposto-de-selo-poupanca-para-jovens-ate-35-anos\/"},"modified":"2026-06-26T14:32:40","modified_gmt":"2026-06-26T14:32:40","slug":"exemption-from-property-transfer-tax-imt-and-stamp-tax-on-savings-accounts-for-young-people-up-to-age-35","status":"publish","type":"post","link":"https:\/\/exs.pt\/en\/blog\/exemption-from-property-transfer-tax-imt-and-stamp-tax-on-savings-accounts-for-young-people-up-to-age-35\/","title":{"rendered":"Exemption from IMT and Stamp Tax: Savings Accounts for Young People Up to Age 35"},"content":{"rendered":"

Are you 35 or younger and looking to buy a home? Then we have some good news for you!<\/p>\n

Given the great difficulty young people face in purchasing a home in Portugal, the government approved, at a meeting of the Council of Ministers, amendments to real estate legislation that, among other things, include a\u00a0a government guarantee for mortgage loans and an exemption from the IMT (Municipal Tax on the Transfer of Real Estate for Consideration) and the Stamp Tax<\/strong>.
\nLet's start by looking at what this government guarantee entails.<\/p>\n

\"A<\/p>\n

What is the Public Guarantee for home loans for young people up to age 35?<\/h2>\n

In practice, this government guarantee makes it possible to\u00a0young people up to age 35<\/strong>\u00a0consider the government as a kind of \u201cguarantor\u201d when applying for a mortgage to purchase a property worth up to a\u00a0maximum amount of 450,000 euros<\/strong>, which will make it easier to get the loan approved by the bank.<\/p>\n

In addition to the buyer being limited to 35 years of age or younger, the rules for this assistance\u2014which can cover up to 15% of the property\u2019s market value (67,5 mil euros)\u2014require that the home in question be used as a permanent residence and that the borrower(s) under the contract\u00a0do not fall into a tax bracket higher than the 8th IRS bracket<\/strong>.<\/p>\n

This government guarantee of up to 15% of the loan amount is ultimately extremely important because, according to the rules of the Bank of Portugal, real estate financing offered by banks and credit institutions\u00a0has a maximum of 90%, which required borrowers to contribute the remaining 10%<\/strong>.<\/p>\n

Now, with this guarantee, if, for example, you want to purchase a property with a sale price and an appraised value of 240,000 euros, the bank will finance up to a maximum of 216,000 euros, with the remaining 24,000 euros covered by the government.<\/strong><\/p>\n

As we have emphasized, this public guarantee is accompanied by an exemption from property transfer tax (IMT) and an exemption from stamp duty\u2014measures and their practical implications that we will now explore.<\/p>\n

IMT Exemption<\/h2>\n

What is IMT?<\/h4>\n

O\u00a0IMT<\/strong>\u00a0or\u00a0Municipal Tax on the Transfer of Real Estate for Consideration<\/strong>, is a tax paid to the government on real estate purchases, the amount of which varies depending on the property\u2019s taxable value (VPT), its location, its intended use, and the applicable rate (ranging from 1% to 8%).
\nGiven these factors, the IMT is generally the most expensive of all the taxes you will have to pay when purchasing your first permanent home, which makes this exemption measure, proposed by the government, essential in terms of access to credit and housing.<\/p>\n

Who is eligible for the IMT exemption?<\/h4>\n

Under this measure, which took effect on\u00a0August 1<\/strong>, young people up to age 35 who purchase a home for their own permanent residence\u00a0up to the 4th IMT bracket (316,722 euros)<\/strong>\u00a0will be able to take advantage of the exemption from paying this tax.
\nIf the value exceeds 316,722 euros, the full exemption no longer applies. When purchasing a property valued at up to 633,453 euros, young people up to age 35 will only have to pay the IMT corresponding to the amount above 316,722 euros.<\/p>\n

Stamp Tax Exemption<\/h2>\n

What is the Stamp Tax, and how much is it?<\/h4>\n

Stamp Tax is a consumption tax on transactions or contracts to which VAT does not apply.<\/p>\n

In practice, this tax is levied on\u00a0all acts, contracts, documents, papers, securities, or other legal situations listed in the General Stamp Tax Schedule<\/strong>, including loans, lease agreements, games of chance, and other financial transactions.<\/p>\n

In terms of amounts, the stamp tax varies depending on the type of contract, the legal act in question, and the timeframes involved, among other factors.<\/p>\n

In the case of a real estate purchase agreement\u2014specifically a mortgage agreement\u2014you will be required to pay stamp tax on two occasions: the first at the time the deed is executed, and the second when the funds are deposited into your account.<\/p>\n

For this type of loan, the fee applicable to the deed is\u00a00,8%<\/strong>\u00a0whereas when the loan proceeds are received, the rate may be either\u00a00,5%<\/strong>\u00a0if the term is between 1 and 5 years, such as 0.6% if it is longer than 5 years.<\/p>\n

In addition to these payments, you will also have to pay stamp tax on bank fees, at a rate that is typically 4%.<\/p>\n

All in all, stamp duty costs are a heavy burden for most young people who want to buy their own home. Or at least they were\u2026 until now.<\/p>\n

Who is eligible for a stamp tax exemption?<\/h4>\n

As with the IMT exemption, as of August 1, people up to age 35 are now exempt from paying stamp duty and fixed fees related to the purchase of a home.<\/p>\n

The rules governing the granting of this exemption are similar to those applied to the IMT exemption, that is,\u00a0If the value of the property is less than 316,722 euros, you will be entitled to a full exemption<\/strong>, whereas if the property is valued at up to 633,453 euros, the discount will correspond to the amount exceeding 316,722 euros.<\/p>\n

It should be noted that, prior to the government\u2019s announcement of these exemptions, anyone who purchased a permanent residence in mainland Portugal with a VPT or deed value of up to 101,917 euros was already eligible for an exemption.<\/p>\n

If the property is located in the Autonomous Region of Madeira or the Azores, the exemption would apply to a VPT or deed value of up to 127,396.25 euros.<\/p>\n

\"A<\/p>\n

How do I apply for an exemption from IMT and Stamp Tax?<\/h2>\n

If you meet the requirements for an exemption from IMT and Stamp Tax, you must submit your request by filling out the\u00a0IMT Model 1<\/a>\u00a0which you can obtain from your personal page on the Finance Portal or, alternatively, submit that document at a Finance Office.<\/p>\n

To that end, you will need to indicate the following on Form 1:<\/p>\n