Under 35 and Buying in Portugal? The Tax Break Foreign Buyers Should Know About

Buying your first home in Portugal could come with a substantial tax saving if you are aged 35 or under, and you do not need to be Portuguese to benefit.

Portugal’s IMT Jovem scheme provides qualifying younger buyers with an exemption from Property Transfer Tax (IMT) and Stamp Duty when purchasing their first property to use as their own permanent home.

For international buyers planning to move to Portugal, it's important to understand that eligibility is not based on nationality.

Instead, the rules focus primarily on your age, your previous property ownership and whether the property will become your permanent home in Portugal.

IMT, or Imposto Municipal sobre as Transmissões Onerosas de Imóveis, is a tax normally charged when property changes hands in Portugal.

Since August 2024, qualifying buyers aged 35 or under have been able to benefit from an exemption when buying their first property for their own permanent residence.

The measure also includes an exemption from the 0.8% Stamp Duty normally charged on the acquisition of a property.

For 2026, buyers purchasing on mainland Portugal can receive a full IMT exemption on qualifying purchases up to €330,539.

For properties above this level, the benefit does not disappear immediately. Instead, IMT is charged on the portion of the purchase value above the exemption threshold, up to the applicable limits.

In Madeira and the Azores, the full-exemption threshold is higher, at €413,174.

Yes. There is no Portuguese nationality requirement for the IMT Jovem exemption.

That means a British, American, Canadian or other foreign national can potentially qualify on the same basis as a Portuguese citizen, provided they meet the relevant conditions.

This is particularly important for younger buyers considering relocating to Portugal, rather than purchasing a holiday home or investment property.

Portugal’s Tax Authority explicitly confirms that somebody currently living abroad can qualify for the exemption if the property is allocated to their own permanent residence within the required timeframe.

Changes introduced in 2026 also mean that non-residents purchasing residential property are generally subject to a different IMT regime, but an exception is available where the buyer is already Portuguese tax-resident or becomes tax-resident in Portugal within two years of the acquisition.

The practical message is therefore simple: your passport is not what determines whether you can benefit. What matters is your circumstances and what you intend to do with the property.

To qualify for IMT Jovem, the buyer must generally meet several conditions.

They must be 35 years old or younger at the date the property is transferred, and they must not be considered a dependent for Portuguese IRS income-tax purposes.

The buyer must also not own, or have owned during the previous three years, a residential urban property or a partial property right covered by the legislation.

Finally, the property must be acquired for the buyer’s own permanent residence, rather than as a second home, holiday property or conventional investment.

This is why describing IMT Jovem simply as a benefit for “Portuguese first-time buyers” can be misleading. It is much more useful to think of it as a benefit for qualifying young buyers establishing their home in Portugal.

The savings can be considerable. Take a qualifying buyer purchasing a €300,000 property in mainland Portugal in 2026.

Without IMT Jovem, the buyer would pay approximately €10,542 in IMT and €2,400 in Stamp Duty, for a total of around €12,942.

Under IMT Jovem, a qualifying €300,000 purchase falls entirely within the 2026 exemption threshold, meaning the buyer can avoid both the applicable IMT and the acquisition Stamp Duty.

That makes the measure particularly relevant when calculating the amount of cash required to complete a purchase. Taxes and transaction costs are normally payable in addition to the property price and mortgage deposit, so eliminating thousands of euros of upfront tax can materially change the affordability of a purchase.

Buying above the full-exemption threshold does not necessarily mean losing the benefit altogether.

On mainland Portugal, qualifying purchases above €330,539 and up to €660,982 are subject to IMT only on the amount exceeding the exempt band, under the applicable 2026 IMT Jovem table.

Above the relevant limits, the standard single rates apply.

This means IMT Jovem can still produce a meaningful saving for buyers looking at properties somewhat above the full-exemption threshold.

Timing matters. The relevant age is your age when ownership of the property is actually transferred.

Signing a reservation agreement or CPCV (Contrato-Promessa de Compra e Venda) while you are 35 does not preserve your eligibility if the final transfer takes place after you turn 36.

Portugal’s Tax Authority specifically confirms that a buyer who signs the promissory contract while eligible but completes the purchase after exceeding the age limit cannot claim IMT Jovem.

For somebody approaching their 36th birthday, that creates a genuine deadline and makes the expected completion date an important part of the buying process.

Eligibility is assessed at buyer level, which can make joint purchases more complicated.

Where buyers acquire a property together, their respective eligibility needs to be considered when calculating the benefit.

There is also an important condition attached to the use of the property: if one co-owner intends to use it as their permanent home but another intends to use it as a secondary residence, the Tax Authority states that the IMT Jovem exemption cannot apply, because the property as a whole must be destined exclusively for permanent residence.

Couples with different ages, ownership histories or residency circumstances should therefore confirm their position before completing the transaction.

As things stand, there is no stated 31 December 2026 expiry date for the IMT Jovem tax exemption itself.

This is worth clarifying because another major support measure for younger buyers does have a deadline at the end of the year.

Portugal’s public mortgage guarantee for buyers aged 18 to 35 currently applies to eligible mortgage contracts formalised no later than 31 December 2026. The scheme can support financing of between 85% and 100% of the property transaction value, subject to its eligibility conditions, for first permanent homes valued at no more than €450,000.

The mortgage guarantee has additional requirements, including Portuguese fiscal domicile, income limits and a regularised tax and social-security position.

So while IMT Jovem itself is not currently scheduled to disappear on 31 December, 2026 remains an important window for buyers who may be able to combine the tax exemption with the public mortgage guarantee.

For an eligible buyer under 35, Portugal currently offers an unusual combination of support.

Depending on their circumstances, a buyer may be able to reduce the taxes due when purchasing their first permanent home through IMT Jovem while also using the state-backed mortgage guarantee to reduce the amount of capital required upfront.

The latter is currently time-limited.

Crucially, a buyer considering taking advantage of these measures should not treat 31 December as the date to begin the process.

Finding a suitable property, obtaining mortgage approval, completing legal due diligence and progressing from an offer to a final deed can all take time. Buyers hoping to use the public guarantee before its current deadline therefore need to allow enough time for the mortgage contract to be formally completed before 31 December 2026.

The first step is to establish whether your circumstances meet the eligibility requirements before calculating your purchasing budget.

For an international buyer, that means considering not only your age and previous property ownership, but also when you intend to establish Portugal as your permanent home and tax residence.

From there, you can assess the property price range in which the exemption provides the greatest benefit, understand your financing options and begin searching for a home that fits both your plans and the requirements of the scheme.

Portugal Homes can help you identify suitable properties and navigate the Portuguese buying process, while working alongside the relevant financial and legal professionals to ensure the structure of your purchase is right for your circumstances.

If you are under 35 and considering making Portugal your home, the combination of tax relief currently available makes it worth establishing what you qualify for before you start your property search.

If you are 35 or under and planning to make Portugal your permanent home, the current tax incentives could significantly reduce the upfront cost of buying.

Portugal Homes can help you find suitable properties, understand the buying process and connect with the right legal and financial professionals for your circumstances.

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