Tax Exemptions for Young People Buying Their First Home

Young people aged 35 or younger can benefit from exemption from Property Transfer Tax (IMT) and Stamp Duty (IS) when purchasing their first home.

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The exemptions apply to:

• Taxpayers aged 35 or younger, inclusive, on the date of the deed of purchase.
• Taxpayers who are not considered dependents within their household.
• Taxpayers who do not own property rights, or any partial interest in such rights, over a residential urban property at the time of purchase or at any point in the three years prior.

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Details of the Exemptions:

• Full exemption from IMT and Stamp Duty is granted for properties up to €316,772.
• For properties priced between €316,772 and less than €633,453, the exemption applies only to the portion up to €316,772.
• No exemption applies for properties priced at €633,453 or more.

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Verification of the Exemptions:

• The requirements are checked individually.
• Therefore, if a property is purchased by a couple, where only one member is 35 years old or younger, the exemption applies to half of the amount that would need to be paid by that individual.
• If only one member of a couple is purchasing a first home, that individual is entitled to the exemption on their share of the taxes to be paid.
• Qualification under this regime is based solely on meeting the specified criteria, regardless of the taxpayer's annual income level.

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Conditions to Maintain the Exemptions:

• The beneficiaries must maintain the property as their primary and permanent residence for six years from the date of acquisition.
• However, there are exceptions, such as the sale of the property, divorce, or a job relocation to a distance greater than 100 km.

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No Nationality Restrictions:

The benefit applies to taxpayers who meet the requirements, regardless of their nationality.

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At Over the Sea (OTS), we have a dedicated team of specialists in national and international taxation and tax benefits, ready to assist you in understanding the tax implications of a potential move to Portugal, taking into account your individual circumstances, and to help develop a tailored solution that meets your needs.