The Government recently approved a decree-law in the Council of Ministers that exempts young people up to the age of 35 from the Municipal Tax on Onerous Property Transfers (IMT) and Stamp Duty (IS) when purchasing their first home.
This measure, which aims to facilitate the acquisition of own and permanent housing, alleviating one of the biggest financial burdens associated with buying a home, was voted favourably in Parliament on June 12th and promulgated this Tuesday by the President of the Republic.
Because of this, within two months, young people up to the age of 35, and not dependents, will be able to benefit from a tax exemption when purchasing their first home as their own permanent home, up to a purchase value of 316,772 euros, and a tax discount significant for properties up to 633,453 euros.
In practice, however, this measure will also benefit those over 35 years of age, as long as they purchase the property together with an eligible young person. In these cases, the exemption from IMT and IS only applies to the part corresponding to young people aged 35 or under, the Ministry of Finance explains to ECO. The remaining part of the transaction will be subject to the current IMT table and the IS rate, considering the entire value of the property for the purposes of applying the exemption and rate reduction.