EXEMPTION FOR YOUNG PEOPLE UP TO 35 YEARS OF AGE FROM IMT AND IS ON THEIR FIRST PURCHASE FOR HPP

Law No. 30-A/2024, of June 20

This new law exempts young people up to 35 years of age from IMT and IS on their first acquisition of HPP, with a set limit, and who are not considered dependents for the purposes of article 13 of the CIRS.

Authorizes the Government to exempt from municipal tax on onerous property transfers and stamp duty the purchase of permanent housing by young people up to the age of 35, through the amendment of the Municipal Tax Code on Onerous Property Transfers and the Stamp Duty Code.

Article 2

a) Establish an exemption from municipal tax on onerous transfers of real estate (IMT) on the acquisition of an urban building or an autonomous fraction of an urban building intended exclusively for permanent housing, the value of which would serve as the basis for settlement does not exceed the maximum value of the 4th bracket of the table applicable to acquisitions of an urban building or an autonomous fraction of an urban building intended exclusively for permanent housing, by young people aged 35 or under and who, in the year of the transfer, are not considered dependents for the purposes of article 13 of the Personal Income Tax Code;

b) Provide that the exemption referred to in the previous paragraph is applicable only to the first acquisition for permanent housing;

Decree-Law No. 44/2024, of July 10

It establishes the conditions under which the State may provide a personal guarantee to credit institutions with a view to enabling the granting of credit to HPP.

Article 2

Cumulative requirements:

a) The borrower(s) of the contract are between 18 and 35 years of age and have tax residence in Portugal;

b) The borrower(s) of the contract enjoy(s) income that does not exceed the 8th bracket of personal income tax;

c) The borrower(s) of the contract is/are not the owner(s) of an urban building or of an independent fraction of an urban residential building;

d) The borrower(s) of the contract have never benefited from the State's personal guarantee under this decree-law;

e) The value of the transaction does not exceed €450,000.00;

f) The personal guarantee of the State does not exceed 15% of the transaction value of the urban building or of an independent fraction of an urban building; and

g) The State's personal guarantee is intended to enable the credit institution to finance the entire transaction price of the urban building or independent fraction of an urban building.

Prepared by Luis Neto

Summer internship at JLAdvogadosLawyers.RL

07/08/2024