Portugal has recently implemented the Jovem 35 program, introducing a suite of financial incentives aimed at individuals aged 18 to 35. This initiative encompasses tax benefits such as exemptions from the Municipal Property Transfer Tax (IMT) and Stamp Duty, as well as favorable terms under the IRS Jovem scheme. Additionally, it offers state-backed guarantees to facilitate access to housing credit.
For expatriates, investors, and retirees interested in the Portuguese real estate market, understanding the nuances of the Jovem 35 program is essential. These measures not only influence the purchasing power of young buyers but also have broader implications for market dynamics and investment opportunities. Notably, the introduction of IMT exemptions has led to a significant increase in property acquisition
Staying informed about these developments is essential for making strategic decisions in the Portuguese property market.
Jovem 35 is a government initiative designed to make homeownership more accessible for young buyers in Portugal. It offers benefits for individuals aged 18 to 35 purchasing their first home<. This programme aims to ease financial burdens by reducing IMT (property transfer tax) and improving access to favourable mortgage conditions.
For foreigners moving to Portugal, Jovem 35 can be an excellent opportunity to invest in real estate while benefiting from lower upfront costsExpats who meet the criteria can take advantage of these financial incentives, making it easier to establish residency and build long-term stability in Portugal.
The Jovem 35 programme is a government initiative designed to support young homebuyers by reducing IMT (property transfer tax) and providing more accessible mortgage conditions. It applies to first-time homebuyers aged 18 to 35 who intend to use the property as their primary residence. This initiative is part of Portugal’s broader effort to facilitate homeownership for younger generations in an increasingly competitive housing market.
One of the main benefits of Jovem 35 is the IMT reduction, which lowers the upfront costs when purchasing property. IMT is a tax paid upon property acquisition, and its rate depends on the property value and purpose. Under Jovem 35, eligible buyers receive a discount on IMT rates, making homeownership more financially feasible. You can check the official tax rates on the Portuguese Tax Authority website.
To qualify for Jovem 35, buyers must meet these requirements:
The Instituto da Habitação e da Reabilitação Urbana (IHRU) oversees housing incentives, including Jovem 35. You can find official eligibility details on the Portal da Habitação.
The Jovem 35 initiative brings a mix of opportunities and limitations, depending on your situation and goals. Here’s a closer look at the main advantages and disadvantages of this programme for those considering life or investment in Portugal.
Eligibility Rules: You must not have owned property in the last 3 years and can’t be considered a dependent for IRS purposes.
The Jovem 35 programme introduces several financial incentives aimed at reducing costs associated with purchasing a first home for individuals up to 35 years old. Here’s a breakdown of the potential expenses and savings:
The programme facilitates access to housing loans with up to 100% financing, supported by a state-backed guarantee covering up to 15% of the property’s value. This reduces the need for a substantial down payment. However, borrowers remain responsible for the full loan amount and must meet the bank’s lending criteria.
Example:
For a property valued at 250.000€:
In this scenario, the state guarantee covers 37.500€, potentially allowing the bank to finance the remaining 212.500€ without requiring a down payment from the buyer.
Here’s how to get started with the application process and ensure you make the most of these benefits.
To benefit from the Jovem 35 housing support programme, you must meet specific criteria:
Not all properties are eligible under Jovem 35. To access tax exemptions, your chosen home must meet the following conditions:
To apply for the Jovem 35 benefits, you’ll need to present several official documents proving your eligibility and purchase details:
At the time of the deed, inform your Notary or Solicitor. The exemption will be applied automatically during the transaction if all conditions are met. You can expect the Property search and financing to take between 1 and 3 months, the mortgage approval between 15 and 30 days, and finally, the deed and registration should be ready within 1-2 weeks after financing is approved.
Note that the services may take longer than expected, especially during peak seasons.
The Jovem 35 initiative is a valuable opportunity for young buyers looking to settle in Portugal. From full or partial exemptions on IMT and Stamp Duty to easier access to mortgage guarantees, it’s designed to make homeownership more accessible. However, navigating the eligibility rules, documentation, and timelines can be overwhelming, especially if you’re new to the Portuguese property market.
If you’re an expat, investor, or retiree helping a family member benefit from this program, or a young buyer yourself, having Pearls of Portugal expert guidance can help you navigate all the bureaucratic steps.
Yes, foreign residents under 35 with legal residency in Portugal and a Portuguese tax number (NIF) can benefit from the Jovem 35 programme – provided they meet all eligibility criteria. You must also intend to use the property as your primary and permanent residence.
For tax exemption benefits (IMT and Stamp Duty), no income cap applies. However, to access the state-backed mortgage guarantee, your annual income must fall within the 8th IRS bracket (up to 83.696€ in 2025).
Yes – but only if the property will be used as your permanent residence and the total value remains within the limits set by the Jovem 35 programme (324.058€ for full exemption or 648.022€ for partial exemption). The exemption applies at the time of the deed, so the buyer must still meet all eligibility criteria at that stage.
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