Portugal IMT Exemption 2025: Zero Taxes for Young Buyers

Note: This content is specific to the Portuguese property market.

Buying a home in Portugal usually involves hefty taxes: the IMT (Property Transfer Tax) and Imposto de Selo (Stamp Duty). Together, they can add 6-8% to the purchase price.

However, starting August 2024 (and continuing into 2025), the Portuguese government has introduced a massive incentive for young people: a total exemption from these taxes.

Who Qualifies?

To benefit from this tax holiday, you must meet the following criteria:

1. Age: You must be 35 years old or younger on the date of the deed.
2. Purpose: The property must be your Permanent Own Housing (HPP). No holiday homes or buy-to-let.
3. First-Time Buyer: You cannot have owned a home in the last 3 years.
4. Income: You must not be a dependent for tax purposes.

The Savings

The exemption applies to properties up to €316,772.

• Property Price: €300,000
• Standard IMT: ~€13,000
• Stamp Duty (0.8%): €2,400
• Total Savings: €15,400

If the property costs between €316,772 and €633,453, you only pay taxes on the portion exceeding the lower limit.

Impact for Expats

This measure applies to tax residents. If you are a young expat living and working in Lisbon or Porto, this is the perfect opportunity to stop renting. Combined with the new public guarantee for 100% financing, buying a home has never been more accessible for young professionals in Portugal.

👉 Portugal Mortgage Calculator: Check your IMT