Buying a Home in 2027: What Changes for Young Buyers?

Buying a first home in Portugal may continue to benefit from specific tax exemptions and financing support in 2027. The proposed 2027 State Budget includes updates to the limits applicable to the Youth IMT tax relief scheme, while the future of the public mortgage guarantee remains an important point to follow.

For young people planning to purchase their first home, understanding these measures can help when assessing the costs involved and preparing for the buying process.

Youth IMT: Updated Tax Exemption Limits

The Youth IMT scheme provides tax benefits for eligible young buyers purchasing their first permanent residence. Under the proposed 2027 State Budget, the threshold for full IMT exemption would increase to €338,141, compared with €330,539 in 2026.

This represents an increase of approximately €7,600 in the property value eligible for full exemption.

For properties priced above €338,141 and up to €676,185, a marginal IMT rate of 8% would apply to the portion above the full-exemption threshold. Above €676,185, the IMT and Stamp Duty exemptions provided under this scheme would no longer apply.

Eligible buyers may also benefit from exemptions from Stamp Duty and certain property registration fees, subject to the applicable legal requirements.

Public Mortgage Guarantee: What Should Buyers Know?

The public mortgage guarantee is designed to help eligible young buyers access home financing by having the Portuguese State guarantee part of the loan.

Under the scheme's conditions, this mechanism may allow financing of up to 100% of the eligible property value. However, this does not mean that every applicant will automatically receive full financing. Banks must still assess each applicant's financial situation, income, existing commitments and ability to repay the loan.

At the time the 2027 State Budget proposal was presented, the continuation of the public mortgage guarantee had not yet been formally confirmed. Its status should therefore be followed as the budgetary process progresses.

Who Can Benefit from These Measures?

The Youth IMT tax benefits and public mortgage guarantee are aimed at eligible young buyers, generally up to 35 years old, purchasing their first permanent residence.

Eligibility depends on the specific requirements of each measure, including the buyer's circumstances, the intended use of the property and the applicable property value limits. Buyers should confirm the rules in force at the time of purchase before making financial commitments.

What Does This Mean for Young People Planning to Buy a Home in 2027?

If approved and maintained under the proposed terms, these measures could help eligible young people reduce some of the upfront costs associated with buying a home.

The increase in the full IMT exemption threshold could extend the tax benefit to properties with a higher purchase price. Meanwhile, the public mortgage guarantee may help eligible buyers who have difficulty saving a large deposit, although access to financing remains subject to the bank's approval.

Anyone considering buying a first home in 2027 should review the applicable requirements, estimate the total costs involved and seek advice before committing to a purchase.

Important note: This article is based on the proposed 2027 State Budget and information reported by Idealista on 8 October 2026. The measures remain subject to the final legislative process and confirmation of the applicable rules.