Government approves "You Have a Future in Portugal" plan for young people

The Council of Ministers has approved several measures aimed at young people. The measures approved range from health to buying a house and are part of the "You Have a Future in Portugal" plan. 

Young people up to the age of 35 will benefit from a number of advantages ranging from taxation to the conditions of access to support, housing costs and house purchase.

Student housing

The emergency plan for student accommodation has three lines of action:

Axis 1: increasing the number of beds
Axis 2: line of funding for Higher Education Institutions to sign protocols to increase the number of beds with public, private and social sector entities in student residences
Axis 3: Allocation of 50% of the value of the housing supplement for displaced students in households between 23 Social Support Index (IAS) and 28 IAS. In 2024, the IAS will be 509.26 euros. (The IAS is a reference value used by Social Security to calculate and determine social support).

These measures come into force next September.

Extension of scholarships for working students

Amendment to the Regulations for awarding scholarships to higher education students, extending the income that working students can receive without losing their right to the scholarship.

The aims of this measure are 

• Expand the number of working students who receive scholarships
• Resolve a social injustice in which a young person from a low-income household, who tries to help their household support their studies by working part-time or full-time, can lose the social support to which they are entitled.
• Strengthening access to higher education for students on lower incomes. 

Health and well-being 

In the area of health and well-being, 4 measures were presented:

Reinforcement of 100 psychologists, nutritionists and nurses in the IPDJ's Cuida-te + program, by increasing funding and extending the age of young people covered by the program from 25 to 30.

Introduction of psychologist vouchers to be distributed by Higher Education Institutions to provide more than 100,000 consultations. The Higher Education Psychologist Voucher measure provides access to mental health care for students at Higher Education Institutions (HEIs). 

Introduction of nutritionist vouchers to be distributed by Higher Education Institutions, for more than 50,000 consultations. The measure provides access to nutrition care for students at Portuguese HEIs, in a model similar to the Psychologist Voucher. 

Free distribution of menstrual hygiene products in primary and secondary schools and health centers, covering up to 120,000 girls and women.

The health and well-being measures come into force next September, when the new school year begins.

Housing

The government presented a set of measures to support the purchase of a first home for young people up to the age of 35 by exempting them from Municipal Property Transfer Tax (IMT), Stamp Duty and emoluments when buying their first home. 

IMT 

The purchase of an urban building or autonomous fraction of an urban building intended exclusively for own and permanent habitation is exempt from IMT. As long as it is the first purchase of a property for this purpose, by taxable persons up to 35 years of age, up to 316,272 euros. 

For properties above 316,272 euros and up to 633,453 euros, the maximum exemption of the previous bracket is maintained, and there is no exemption for properties of a higher value. 

As IMT is a municipal tax, the government will create a compensation mechanism for municipalities whose revenue is reduced by the application of this exemption. 

The measure comes into force on August 1st.

Stamp Duty 

In the same cases as the exemption from IMT, there is also an exemption from stamp duty on the acquisition of property by young people up to the maximum amount of stamp duty that would be due on property up to 316,272 euros. 

In the same cases as the IMT exemption, young people will also be exempt from stamp duty on property purchases up to 316,272 euros.

For properties with a higher value, the remaining tax is due. 

The measure comes into force on August 1st. 

Saving on IMT and stamp duty 

Buying a house requires extra financial resources, since in addition to the down payment - which is not covered by housing loans - you also have to pay the corresponding taxes on the entire transaction. 

The government proposes exempting young people up to the age of 35 from one of these two expenses, with savings that vary according to the value of the property.

Emoluments 

In addition, there will also be an exemption from the fees due for registering the acquisition, by transfer for consideration between living persons, of a property with a tax value of up to 316,772 euros (which includes an exemption from the fees due for registering loans and mortgages). 

The measure will be reviewed after three years.

Public guarantee for first home purchases 

"The decree-law creating a public guarantee of up to 15% of the value of the transaction, on properties up to 450,000 euros, was approved, with a view to making it possible to grant credit for the first permanent home for young people up to the age of 35".

The guarantee is aimed at young people between the ages of 18 and 35, with incomes up to the 8th IRS bracket, i.e. 81,199 euros of annual taxable income. To benefit from the measure, young people must not own property and must not have already benefited from public guarantees.

The measure will have a maximum transaction value of 450,000 euros and the guarantee will be limited to 15%.

The measure comes into force on August 1st.

Extension of the Porta 65 Youth Program 

Changes to the Porta 65 Jovem program to: 

Elimination of the maximum income allowed as a factor for excluding applicants
Reducing the number of months of pay slips to be submitted as an alternative to the IRS declaration from six to three months
Reversal of the application process, in which the young person applies for support and after receiving an answer looks for housing on the market, in accordance with the support they will receive, subsequently handing in the rental contract or promissory contract. 
Monthly cycle application system, with applicants sorted on the basis of income and household, guaranteeing priority support for those who need it most. 

It comes into force on September 1st.

Young IRS

The measure applies from January 1, 2025 and benefits young people aged up to 35 on December 31 of each year.

Find out more about the measures in the document "Tens Futuro em Portugal - Medidas para a Juventude" available on the Government website.

Source: Government portal