Since 1 August 2024, the Portuguese government has implemented a number of significant measures to support young people in buying their first home. This package, called "Tens Futuro Em Portugal" (You Have a Future in Portugal), is aimed at young people up to the age of 35 and includes various tax exemptions and guarantees to facilitate access to home ownership.

Main Measures Approved

1. Exemption from IMT and Stamp Duty: Young people up to the age of 35 are exempt from paying Municipal Property Transfer Tax (IMT) and Stamp Duty (IS) when buying their first home. This exemption applies to properties whose value does not exceed 316,772 euros. For properties worth between 316,772 and 633,453 euros, the exemption is partial.
2. Public guarantee of up to 15%: A public guarantee covers up to 15% of the transaction value for properties up to 450,000 euros, facilitating the granting of credit and ensuring that credit institutions can finance the entire price of the property.
3. Exemption from Emoluments: Young people are exempt from paying fees related to registering the acquisition of the property and for the mortgage, for properties with an asset value of up to 316,772 euros. This measure will be reassessed after three years.

Other complementary measures

Emergency Plan for Student Accommodation: This includes reinforcing the supply of beds through protocols with Movijovem and INATEL and a line of funding for Higher Education Institutions (HEIs) to increase their accommodation capacity.

 Extension of the Porta 65 Youth Programme: The Porta 65 Programme has been adjusted to increase its budget allocation, eliminate the maximum rent as an exclusion factor and allow applications before the lease contract is signed. These changes aim to make the programme more accessible and efficient.

These measures represent a significant effort by the government to facilitate young people's access to housing, with an estimated annual budget impact of 100 million euros. The changes to the Porta 65 programme and the student housing plan come into force on September 1st and in the 2024/25 academic year respectively.

The implementation of the measures to support the purchase of first homes for young people up to the age of 35 represents an important step towards facilitating access to home ownership in Portugal. With tax exemptions, public guarantees and exemptions from emoluments, the government is demonstrating a strong commitment to the new generation, promoting stability and growth in the property market. For young people, these measures provide a unique opportunity to realise the dream of home ownership, contributing to a more secure and promising future in the country.