In previous episodes, we explored mortgage conditions for residents and non-residents. Today we move to a topic that has become increasingly important for young buyers in Portugal: the tax benefits available to those under 35, purchasing their first home.
Guiding us through the details is Elena Bykovets, CEO and Founder of RelyOn Relocation®️ — a relocation and property expert with years of experience supporting international families and investors in Portugal.
Question: What is the main purpose of the “under 35” benefit?
Elena: The government wants to support young buyers entering the housing market. The benefit applies only to first homes intended for personal residence, and it exempts buyers from two major taxes.
Question: Which taxes are eliminated?
Elena: The first is IMT, the property transfer tax, which normally ranges between is 7%.
The second is the mortgage stamp duty (Imposto do Selo) of 0.6%.
Buyers under 35 can be fully exempt from both.
For example, for a property priced at €250,000, the IMT alone would be around €17,500. With the stamp duty added, the total savings can reach €18,000–20,000.
Question: Are there limits on the property price?
Elena: Yes. The benefit applies within specific price thresholds for first homes, which should always be checked for updates. But the principle is straightforward: if the buyer is under 35 and the property meets the criteria, the exemption applies.
Question: How does residency status interact with this benefit?
Elena: Residency makes the mortgage itself easier — up to 90% financing, terms up to 40 years, and softer documentation requirements. The under-35 benefit reduces tax burden. Together, they significantly decrease the initial budget needed to buy a home.
Question: What does the buying process look like for a young applicant?
Elena: It includes, preparing documents required, choosing a property and a bank, calculating taxes, and buying your first home.
The full process usually takes 2–3 months. Many young clients say they feel much calmer once they receive a clear, step-by-step checklist. Structure reduces stress.
The under-35 program makes entering the Portuguese property market more attainable — lowering upfront costs and enabling earlier purchase of a first home.
In the next article we’ll explore commercial mortgages — why the conditions differ and who they are best suited for.
Book a consultation — we’ll calculate your potential savings and prepare a tailored purchase plan using all available benefits.
