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Svenska"You Have a Future in Portugal" programme for young people
What is it?
In May 2024, the Portuguese government announced a plan of measures to support young people under the age of 35 buying their first permanent home.
These measures include exemption from Municipal Property Transfer Tax (IMT), Stamp Duty and emoluments, as well as government funding of up to 15 per cent (helping to obtain 100 per cent funding for housing, including government and bank supplements). To do this, you have to comply with a series of rules.
The full story can be read HERE
In short, young people can fully benefit from this programme if they:
- You are under 35 years old;
- Have an income up to the 8th IRS bracket, i.e. 81,199 euros of annual taxable income;
- Have a tax residence in Portugal;
- Do not own property;
- Must not have already benefited from public guarantees;
- The property has a tax value of up to 316,772 euros
For properties above these values, it is also possible to partially benefit from the Programme’s exemptions.
For couples in which one of the people already owns a home or one of the people is over 35, the exemption becomes 50 per cent.
How can I benefit from this programme?
To benefit from this programme, the deed for your new home must be scheduled for 1 August 2024. Then, to request exemption from IMT and IS, you must fill in the IMT model 1 declaration on the Finance Portal, or send the completed declaration via the e-balcão on the Finance Portal. You can also submit the declaration on paper to a Tax and Customs Authority (Finanças) office.
Find out more HERE
Some properties that could be covered by the programme:
Points to consider about the implementation of the Programme
The Programme has only just been implemented and it is too early to draw any conclusions, however there are some points to consider:
Positive points:
- Housing affordability: The plan aims to facilitate access to housing for young people, a demographic group that is facing increasing difficulties in this market.
- Stimulating the economy: Buying property boosts the economy, creating jobs and moving different sectors forward.
- Encouraging settlement: By making it easier to buy a first home, the plan could encourage young people to stay in Portugal, helping to settle the population.
- Cost savings: The tax exemption and public guarantee for mortgage loans represent significant savings for young buyers.
Points to Consider:
- Long-term effectiveness: It is necessary to assess whether the plan will be effective in the long term in solving the housing crisis, especially in areas with high demand and limited supply.
- Impact on the property market: Increased demand could put pressure on property prices, making housing even more unaffordable for some.
- Eligibility criteria: It is important to analyse the eligibility criteria to ensure that the plan reaches the young people who need the most support.
- Financial sustainability: Implementing the plan could have a significant impact on public accounts. It is essential to guarantee its long-term financial sustainability.
Other issues to consider:
- Alternatives to incentivising purchase: In addition to incentivising purchase, it would be important to explore other solutions, such as increasing the supply of public housing and regulating the rental market.
- Environmental impact: It is essential to consider the environmental impact of new constructions and encourage the refurbishment of existing buildings.
- Specific needs of each region: Housing needs vary from region to region. The plan must be adapted to respond to the specificities of each location.
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