Decree-Law 48-A/2024 and Decree-Law 48-D/2024 were published on 25/07/2024 and 31/07/2024, respectively, and establish the exemption (or reduction) of IMT, IS and fees due for the registration of the first acquisition, by young people aged 35 or under, of a property intended for their own permanent residence.
To concretise,
I)
With regard to IMT - municipal tax on the onerous transfer of real estate - Decree-Law no. 48-A/2024 of 25 July amended the IMT Code, namely article 9, with paragraph 2 of that article now stating that "The first acquisition of an urban building or autonomous fraction of an urban building intended exclusively for own and permanent habitation, whose value that would serve as the basis for the settlement does not exceed the maximum value of the 1st bracket referred to in article 17(1)(b), is exempt from IMT. The first acquisition of an urban building or autonomous fraction of an urban building intended exclusively for permanent residence, the value of which does not exceed the maximum value of the 1st bracket referred to in Article 17(1)(b), by taxpayers who are 35 years old or younger at the time of the transfer and who, in the year of the transfer, are not considered dependents for the purposes of Article 13 of the IRS Code".
As an exclusion rule, paragraph 3 of the same article 9 states that "Taxpayers who hold ownership rights, or partial ownership of such rights, over an urban residential building on the date of the transfer or at any time in the previous three years are excluded from the exemption provided for in the previous paragraph".
With regard to the applicable IMT rates, the table set out in Article 17(1)(b) of the IMT Code has been amended, and Article 17(1)(c) has been added, as have the other rules in line with the new rules.
With regard to the expiry of these benefits, article 11 of the IMT Code states that
"The following situations shall also cease to benefit from the exemption and rate reduction provided for in Article 9 and Article 17(1)(a), (b) and (c):
"a) When the goods are used for a purpose other than that on which the benefit was based within six years of the date of acquisition, except in the following cases
i) Sale;
ii) Change in the composition of the respective household, due to marriage or de facto union, dissolution of the marriage or de facto union or an increase in the number of dependents, considering as such those who constitute the taxpayer's household for IRS purposes, under the terms of article 13 of the IRS Code, provided that the building remains exclusively for residential purposes;
iii) Change of place of work to a distance of more than 100 kilometres from the property, provided that the property remains exclusively residential."
and that
"In the cases of Article 9(2) and Article 17(1)(b), is considered dependent for the purposes of Article 13 of the IRS Code, at any time during the period provided for in point a)."
II)
With regard to IS - Stamp Duty - Decree-Law no. 48-A/2024, of 25 July, amended the IS Code, adding article 7-A, stipulating that "The onerous acquisitions of real estate provided for in paragraphs 2 to 5 of article 9 and paragraph b) of paragraph 1 of article 17 of the IMT Code benefit from a deduction from the collection of item 1. 1 of the TGIS, until it is competed, with the limit resulting from the application of the aforementioned amount to the upper limit of the 1st bracket of the table provided for in paragraph b) of no. 1 of article 17 of the IMT Code", this exemption lapsing if one of the situations transcribed in supra I) occurs, with regard to no. 8 of art. 11 of the IMT Code.
III)
With regard to the exemptions and reductions in fees due for the registration of the first acquisition, by young people aged 35 or under, of a property intended for their own permanent residence and for the registration of the mortgage intended to guarantee the loan granted for that acquisition - with Decree-Law no. 48-D/2024 of 31 July, article 28 of the Emoluments Regulations for Registries and Notaries now provides, in addition, in its paragraph 37, that The following are exempt from fees
The registration of the first acquisition, by transfer for consideration, of an urban building or autonomous fraction of an urban building intended exclusively for own and permanent habitation, the taxable value of which, under the terms of Article 12(1) of the Municipal Property Transfer Tax Code, approved by Decree-Law no. 287/2003, of 12 November, in its current wording (CIMT), does not exceed the maximum value of the 4th bracket of the table provided for in paragraph 2 of the CIMT. It must be made in favour of individuals who are 35 years of age or younger at the time of the transfer and who, in the year of the transfer, are not considered dependents for the purposes of article 13 of the Personal Income Tax Code, approved by Decree-Law no. 442-A/88, of 30 November, in its current wording;
As well as
The registration of a voluntary mortgage to guarantee the loan granted for the acquisition referred to in the previous paragraph.
It should also be noted that, in accordance with no. 38 of the aforementioned article 28, this exemption will not be applied, as in the case of the other benefits, if the purchasers are holders of property rights, or of instalments of such rights, over an urban building or autonomous fraction of an urban building for residential purposes, on the date of the transfer or within the previous three years.
In the case of several purchasers, the verification of the conditions and their application will be taken into account in due proportion, in accordance with paragraphs 39 and 41 of the aforementioned article 28.
IV)
The rules mentioned here took effect on 1 August 2024.
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