IMT exemption prevents young people from renting property for six years
Young people up to the age of 35 who are exempt from the municipal tax on the onerous transfer of real estate (IMT) when buying their first home will have restrictions on the use of the property. According to Público, those who benefit from this exemption will be prevented from renting out the property or using it for tourist activities for six years, under penalty of losing the tax benefit.
The draft law that the government is about to submit to Parliament includes some exceptions to this impediment: in the event of the sale of the house, divorce, a change in the composition of the household or a move of more than 100 kilometers from the workplace. In the latter two situations, the property must remain exclusively used as a home in order to maintain the exemption.
Measure to be discussed in Parliament
On May 23, the Council of Ministers approved a total exemption from IMT and Stamp Duty for young people up to the age of 35 when buying their first home, among other changes. The exemption is total up to 316,000 euros, and partial for houses up to 633,000 euros. Houses above this value “will not receive any benefit. The government wants all young people to benefit from this measure, regardless of their income.
This measure will still have to be legislated in Parliament, as it is a tax change, but the government wants it to come into force on August 1st.
The new measures announced by the government are part of the “Construir Portugal: Nova Estratégia para a Habitação” program, which includes 30 measures to provide an “immediate response” to the housing crisis.
Source: Casayes
