Exemption from IMT and Imposto do Selo on property purchases for people under 35 now in effect

02.08.2024

From August 2024, people under 35 buying their first permanent home will be exempt from Imposto Municipal sobre as Transmissões Onerosas de Imóveis (IMT) and Imposto do Selo (IS).

The measure was announced in May 2024 and is included in the "Construir Portugal: Nova Estratégia para a Habitação" plan. In order to qualify for this exemption, homebuyers must:

  • be 35 years old or younger
  • deed the house on or after 1st August 2024
  • not own another house or part of another property used as a home

The total exemption from IMT and IS applies to the purchase of a property up to 316,772 euros. If the purchase is between 316,772 and 633,453 euros, the exemption only applies up to the value of 316,772, and you have to pay tax on the extra amount. 

For couples where one of the people already owns a home or where one of the people is over 35, the exemption becomes 50%.

To request exemption from IMT and IS, you must fill in the IMT model 1 declaration on the Portal das Finanças, or send the completed declaration via the e-balcão on the Finance Portal. You can also submit the declaration on paper to a Autoridade Tributária e Aduaneira (Finances) office.

Find out more about how to request exemption from Imposto Municipal sobre as Transmissões Onerosas de Imóveis (IMT).

Source: Portal do Governo