IMT exemption for young people up to 35: 

If you still don't know what this measure is about, which exempts young people up to 35 years old from paying IMT (Municipal Tax on Transfers) and IS (Stamp Duty) for the acquisition of the first Own and Permanent Housing, please read this article first to better understand what it is about:

IMT Exemption for Youth up to 35 years old: Guide 2024

Although the final diploma has not yet been published, many of its basic guidelines are defined and we have tried to be as specific as possible and to put together several practical cases to be able to understand the practical application of this new measure.

Below is the Table of Contents of all questions answered:

1. Which young people are covered by the IMT and stamp duty exemption?

2. Which children are considered dependents in the IRS?

3. Which children are not considered dependents in the IRS?

4. Which houses are covered by the IMT and stamp duty exemption?

5. If the house is purchased for a value greater than 395,965.00 euros, do young people lose the right to IMT and stamp duty exemption?

6. If the house is bought by a couple in which only one of the elements is up to 35 years old, is the right to IMT and Stamp Duty exemption lost?

7. If the house is bought by a couple and only for one of them it is their first permanent home, is the right to IMT and stamp duty exemption lost?

8. Are houses purchased before August 1 by young people up to the age of 35 and for their first own and permanent home exempt from IMT and Stamp Duty?

9. Can young people who are still listed as dependents in the household IRS benefit from IMT and Stamp Duty exemption on the purchase of their first own and permanent home?

10. Are there limits on young people's annual income to access IMT and Stamp Duty exemption?

11. Does the IMT and Stamp Duty exemption also apply to houses under construction?

12. Are there other exemptions for young people up to 35 years old when buying a house?

Which young people are covered by the IMT and stamp duty exemption?

The exemption from IMT and Stamp Duty applies to young people up to and including 35 years old on the date of the deed of purchase of the house and who, in the year of acquisition, are not considered dependents in their household.

Which children are considered dependents in the IRS?

The answer is also in article 13 of the CIRS. Thus, the following are considered dependents:

• Children, adopted children and minor stepchildren who are not emancipated or under guardianship;
• Children, adopted children and adult stepchildren, as long as they are not over 25 years of age and do not receive more than 14 minimum wages annually (10,640 euros, in the 2023 IRS, to be delivered in 2024);
• Children, adoptees and adult stepchildren unfit for work and to raise means of subsistence;
• Civil godchildren.

Which children are not considered dependents in the IRS?

The following are not considered dependents for IRS purposes:

• Emancipated minors;
• Children, adopted children and stepchildren who turn 26 years of age;
• Children, adoptees and stepchildren who, reaching the age of majority – that is, 18 years old – receive more than 14 minimum wages per year.

Which houses are covered by the IMT and stamp duty exemption?

The total exemption from IMT and Stamp Duty is only granted to properties up to 395,965.00 euros in the Autonomous Region of Madeira.

Only houses acquired for the first and permanent home of young people up to 35 years old can be covered by the IMT and Stamp Duty exemption. If the young person has already had other own and permanent dwellings in his name, he is excluded from this support. The same happens if the purchased house is not, after all, used as your own and permanent home.

If the house is purchased for a value greater than 395,965.00 euros, do young people lose the right to IMT and stamp duty exemption?

No. As long as the house is purchased for an amount equal to or less than 791,816.00 euros, the right to exemption is maintained, but only in the part that does not exceed 395,965.00 euros.

For example, a house purchased for 500 thousand euros in the Autonomous Region of Madeira corresponds, until August 1st, to an amount of 27,512.33 euros to be paid, as IMT and Stamp Duty. Assuming that the purchase is made by a couple in equal parts, each of them would have 13,756.17 euros to pay. However, the youngest member of the couple, aged up to 35 years, and as long as they meet the requirements for access to support, benefits from the exemption of 9,178.63 euros, the maximum they would be entitled to if the house cost 395,965.00 euros. That is, this young man is still responsible for paying the remaining 4,557.55 euros of his share of taxes.

In this example, the couple will end up paying 18,333.72 euros in IMT and Stamp Duty, instead of the 27,512.33 euros they pay until August 1st.

For houses purchased for a value greater than 791,816.00 euros, there is no exemption from IMT and Stamp Duty.

If the house is bought by a couple in which only one of the elements is up to 35 years old, is the right to IMT and Stamp Duty exemption lost?

No. The exemption remains, but only applies to half of the amount that would have to be paid.

For example, a house purchased for 250 thousand euros would have 6,971.97 euros to pay in IMT and Stamp Duty. As the youngest member of the couple benefits from the support, he is exempt from paying half of this amount (3,485.99 euros). The other member of the couple has to pay the remaining 3,485.99 euros.

Take note: the calculation of IMT and Stamp Duty continues to be made by the total value of the house. The exemption is applied to the amount of taxes that would have to be paid.

If the house is bought by a couple and only for one of them it is their first permanent home, is the right to IMT and stamp duty exemption lost?

No. As long as the member of the couple for whom the house now purchased is their first own and permanent home is up to 35 years old at the date of the deed, they enjoy exemption on their half of the taxes payable. The other element of the couple, for whom the house now bought is no longer their first and permanent home, does not benefit from any tax exemption.

Are houses purchased before August 1 by young people up to the age of 35 and for their first own and permanent home exempt from IMT and Stamp Duty?

No. The exemption only applies to houses deeded from August 1, 2024.

Can young people who are still listed as dependents in the household IRS benefit from IMT and Stamp Duty exemption on the purchase of their first own and permanent home?

No. The exemption only applies to young people who are already IRS taxpayers in the year of acquisition of the house, that is, who in that year are no longer classified as dependents.

Are there limits on young people's annual income to access IMT and Stamp Duty exemption?

No. If the young person meets all the requirements to access the IMT and Stamp Duty exemption, they can do so, regardless of their income.

Does the IMT and Stamp Duty exemption also apply to houses under construction?

No. In principle, the exemption only applies to the purchase of houses that have already been built.

Are there other exemptions for young people up to 35 years old when buying a house?

In principle, there is also an exemption from fees, which include expenses associated with the acquisition of real estate and loan and mortgage registrations. But it is necessary to wait for the publication of the diploma to confirm whether these predictions come true.