The young buyer IMT and Stamp Duty exemption was created for the first purchase of a primary permanent home by buyers aged 35 or under. It can materially reduce the cash needed at completion, but it depends on legal requirements and should be confirmed before making an offer.
What the exemption is
The Portuguese Tax Authority describes the measure as an IMT and Stamp Duty exemption for the first purchase of an urban property or autonomous unit used exclusively as a primary permanent home. In practice, this is not a commercial discount: it is a tax benefit subject to legal conditions.
What to confirm before moving forward
Confirm age on the transfer date, property purpose, first-purchase status and applicable limits. For purchases by couples, the Tax Authority states that each taxpayer must submit their own IMT Model 1 declaration so eligibility can be checked. The tax simulation should be done before the promissory contract whenever the budget depends on the exemption.
Impact on the mortgage
Tax savings may free up own funds, but they do not replace the bank creditworthiness assessment. The lender still assesses income, debt-service ratio, credit history, purchase price, valuation and guarantees. For eligible young buyers, the public guarantee can be analysed in parallel.