Key figures — as of 2026-10-08: Full IMT Jovem exemption ceiling rises from €330,539 to €338,141 (+2.3%) under the OE2027 proposal — partial-exemption upper limit rises from €660,982 to €676,185 — general (non-youth) IMT exemption threshold rises to €108,792 — measure applies to first-home buyers aged 35 or under; delivered to parliament 8 October 2026.
The headline number
Portugal's government handed its 2027 state budget proposal to parliament on 8 October, and buried in the tax tables is a figure that matters directly to younger foreign residents trying to buy their first home here. The 2027 budget proposal raises the IMT threshold by 2.3% to 338,141 euros for young buyers' tax exemption, an increase of roughly €7,600 on the current ceiling. If parliament passes the budget as drafted, anyone 35 or under buying a first permanent home priced at or below that figure will pay zero IMT (Imposto Municipal sobre as Transmissões), zero Imposto do Selo, and no registry fees on the transaction.
This is not a new scheme — it's an inflation-linked uprating of a benefit that has existed since August 2024. The IMT limit in force until the end of this year was updated by 2%, with the exemption threshold set at €106,346 for the general (non-youth) exemption, and the youth ceiling sat at €330,539. The OE2027 proposal pushes both figures up again, with the youth threshold rising faster in percentage terms to track the fourth IMT bracket.
Who qualifies, and what changes above the ceiling
The exemption isn't automatic for anyone young — the eligibility rules stay unchanged for 2027. Buyers must be 35 or under on the date of the deed, filing IRS independently rather than as a dependent, purchasing a first permanent home, and must not have owned (even partially, including unsettled inheritance shares) any residential property in the previous three years. For foreign residents who've recently moved to Portugal and are buying their first home here, these are the same conditions that applied under the current rules — the budget only moves the money threshold.
Above the full-exemption ceiling, a partial benefit kicks in. Once the exemption limit is exceeded, a marginal IMT rate of 8% applies up to €676,185; above that value, there is no exemption from either IMT or Stamp Duty. In practice, as one outlet illustrated using a €600,000 example, a €600,000 house will pay 0% IMT and Stamp Duty up to €338,141, and an 8% rate on the portion between that value and the purchase price. The buffer zone between full exemption and total loss of benefit — previously €330,539 to €660,982 — widens to €338,141–€676,185.
The general exemption that applies to everyone, regardless of age, also moves. The new table shows that property purchases up to €108,792 will be exempt from IMT when intended as a primary permanent residence, up from €106,346 this year.
GrowIN's take: what the extra headroom is actually worth
The percentage increase sounds modest, but translated into cash it has a concrete effect for anyone buying right at the margin. Take a first-time buyer under 35 purchasing a home priced exactly at the new €338,141 ceiling. Under last year's rules, the portion of that price above the old €330,539 limit — €7,602 — would have been taxed at the 8% marginal rate that applies in the partial-exemption band, plus 0.8% Stamp Duty on the same slice. That's roughly €608 in IMT and €61 in Stamp Duty, a combined €669 that a buyer at this exact price point no longer owes once the new ceiling takes effect. For young professionals and remote workers stretching to afford property in Lisbon, Porto or the Algarve, where median asking prices for small flats regularly sit near or above this bracket, that's a real — if modest — reduction in the cash needed at the notary.
"A €7,600 shift in the ceiling is small change against Portugal's property prices, but for a buyer sitting exactly on that line it's the difference between paying nothing and paying several hundred euros at the deed," says GrowIN Portugal Editorial.
Why this matters for foreign residents, and what to watch
Foreigners under 35 who've established tax residency in Portugal and meet the standard criteria — independent IRS filer, no property owned in the past three years, buying a primary home — can access IMT Jovem on the same terms as Portuguese nationals; nationality isn't a condition of the regime. Combined with the state-backed 100% mortgage guarantee for under-35 first-time buyers (in effect through 2026, with its 2027 continuation yet to be confirmed), the exemption is one of the more tangible cost reductions available to younger arrivals settling here long-term.
This is a budget proposal, not law. OE2027 still has to pass through parliamentary debate and voting before these figures are final, and past budgets have seen line items amended during that process. Anyone timing a purchase around the new threshold should confirm the final approved tables on the Portal das Finanças before relying on them, and should budget using current 2026 figures until the law is published. For a fuller walkthrough of the buying process, costs and required paperwork for non-residents, see our guide on tax & NIF, and get in touch via services if you need help sequencing a purchase around these tax thresholds.