IMT EXEMPTION : HOW DOES THE BENEFIT WORK FOR YOUNG PEOPLE UP TO 35 YEARS OLD?

Young people up to 35 years old can be exempt from IMT and Stamp Duty when buying their first and permanent home.

Which young people are covered by the IMT and Stamp Duty exemption?

The exemption from IMT and Stamp Duty applies to young people up to and including 35 years old on the date of the deed of purchase of the house and who, in the year of acquisition, are not considered dependents for IRS purposes, even if until the purchase of the house they still live with their parents. They also cannot be owners, nor have been owners of any dwelling, at the time of purchase of the house or at any time in the previous three years.

This measure applies to all young people who meet the requirements, regardless of their nationality.

Which houses are covered by the IMT and Stamp Duty exemption?

The total exemption from IMT and Stamp Duty is only granted to properties up to 316,772 euros. Only houses acquired for the first and permanent home of young people up to 35 years old can be covered by the IMT and Stamp Duty exemption.

Even if the young person has already been, at some point in his life, the owner of a property, he will only be entitled to this benefit if he has already ceased to be the owner for more than three years.

Also excluded from the support are purchased houses that are not, after all, used as their own and permanent home.

If the house is purchased for a value greater than 316,772 euros, do young people lose the right to IMT and Stamp Duty exemption?

No. As long as the house is purchased for an amount equal to or less than 633,453 euros, the right to full exemption is maintained, but only in the part that does not exceed 316,772 euros.

The exemption is partial between 316 772 and 633 453 euros.

For example, a house purchased for 400 thousand euros corresponds, until August 1st, to an amount of 22,009.86 euros to be paid, as IMT and Stamp Duty.

Assuming that the purchase is made by a couple in equal parts, each of them would have 11,004.93 euros to pay. However, the youngest member of the couple, aged up to 35 years, and as long as they meet the requirements for access to support, benefits from the exemption of 7342.90 euros, the maximum they would be entitled to if the house cost 316 722 euros.

That is, this young man is still responsible for paying the remaining 3662.03 euros of his share of taxes.

In this example, the couple will end up paying 14,666.96 euros in IMT and Stamp Duty, instead of the 22,009.86 euros they would pay by August 1, before the measure came into force.

For houses purchased for a value greater than 633,453 euros, there is no exemption from IMT and Stamp Duty.

Source: https://www.theportugalnews.com/news/2024-06-26/imt-exemption-approved-for-young-people/90195