# IMT Jovem Exemption Rises to €338,141 Under Portugal's OE2027 Budget
> Portugal's 2027 budget proposal raises the IMT Jovem tax exemption ceiling to €338,141, a 2.3% increase benefiting young first-home buyers, including foreigners.
- Source: https://www.growinportugal.com/news/limite-de-isencao-do-imt-jovem-sobe-para-338-141-no-oe2027-2026-10-08
- Publisher: GrowIN Portugal (https://www.growinportugal.com)
- Published: 2026-10-08
- Last reviewed: 2026-10-08
- Language: en
> **Key figures — as of 2026-10-08:** IMT Jovem total exemption ceiling rises from **€330,539** (2026) to **€338,141** (OE2027 proposal) — a **2.3%** update, worth roughly **€7,600** more tax-free property value; the partial-exemption ceiling moves to **€676,185**; the general (non-youth) IMT exemption threshold rises to **€108,792**; eligibility stays capped at buyers aged **35 or under** purchasing a first permanent home.
## The headline number
The Portuguese government's draft State Budget for 2027 (OE2027), delivered to parliament on 8 October 2026, pushes the IMT Jovem exemption ceiling higher again. The proposal updates the IMT brackets by 2.3%, raising by around €7,600 to €338,141 the value up to which young people are exempt from the tax. For foreigners under 35 who are tax resident in Portugal and buying their first permanent home, that's a meaningful jump from the current threshold.
It matters because IMT — the Imposto Municipal sobre as Transmissões Onerosas de Imóveis, Portugal's property transfer tax — is one of the largest upfront costs in any purchase, and the "jovem" (youth) exemption removes it entirely below the ceiling.
## What changes, and what stays the same
The mechanics of the scheme aren't new — only the thresholds move. 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. To illustrate: next year, a €600,000 house will pay 0% IMT and Stamp Duty up to €338,141, and an 8% tax rate on the portion between that value and the purchase price.
For buyers who don't qualify for the youth scheme — over 35, or already homeowners — the general IMT exemption also moves. For those buying without being covered by this measure (because they're over 35 or already own a residential property), OE2027 also brings changes, with IMT exemption applying to home purchases up to €108,792. That's up from the 2026 general threshold, where the IMT value in force until the end of this year was updated by 2% and has €106,346 as the exemption limit.
Context: in 2026, the youth exemption sits at €330,539 total, with partial relief up to €660,982 — the figures the new proposal now supersedes.
## GrowIN's take: what the extra €7,600 is actually worth
The headline increase sounds modest, but it's worth pricing out. Under the 2026 rules, anyone buying above €330,539 paid 8% IMT on every euro past that line. The new €338,141 ceiling shields an additional €7,602 of property value from that marginal rate entirely. Do the maths — 8% of €7,602 — and a buyer closing a deal right at the new threshold keeps roughly **€608 more in their pocket** than they would have under 2026 rules, purely from the bracket shift, before even counting the parallel Stamp Duty saving. In a market where closing costs already run 5–9% of the purchase price, that's not trivial for a young buyer stretching every euro to clear the deposit and notary fees.
"A €7,600 bracket increase sounds small until you realise it's the difference between paying tax on that slice of your home and paying nothing at all," notes GrowIN Portugal Editorial.
## Who actually qualifies — and the catch for foreigners
The scheme has never carried a nationality test — it's built around age, tax status and property use, not citizenship. The published conditions require the buyer to be 35 or under at the date of the deed, filing IRS independently (not as a dependent), purchasing a primary permanent residence, and not having owned a home in the past three years. That framework should, in principle, apply equally to a foreign national who is tax resident in Portugal and files Portuguese income tax — but the rules are set out for domestic tax residents, and anyone relocating should confirm their own residency and filing status qualifies before assuming the exemption applies. This is exactly the kind of detail worth checking with **Finanças** or a tax adviser before signing a promissory contract — see our tax and NIF guide for the residency basics that underpin eligibility.
## What to watch next
This is still a *proposal* — OE2027 now goes through parliamentary debate and votes before final approval, typically through to late 2026. The State Budget proposal for 2027 provides for a 2.3% rise in the IMT brackets on the acquisition of urban property or units, reflecting the government's inflation estimate for next year, but brackets, thresholds and even the scheme's survival can shift during negotiations. Anyone timing a purchase around the New Year should wait for the final approved budget text rather than lock in a decision on the proposal alone, and should pair the IMT Jovem numbers with the wider purchase cost picture — Stamp Duty, IMI, notary fees — covered in our relocation guide for newcomers buying property in Portugal.
For foreigners already weighing a first home purchase, the direction of travel is favourable: thresholds have risen in both 2025 and 2026, and this proposed 2027 update continues that trend. Whether the final figure lands exactly at €338,141 depends on what survives the parliamentary process — worth tracking alongside the rest of OE2027's tax measures over the coming months.
## Sources
- [TSF](https://www.tsf.pt/economia/artigo/isencao-do-imt-jovem-na-compra-de-casa-sobe-23-para-338-mil-euros/18134865)
- [ECO (Economia Online)](https://eco.sapo.pt/2026/10/08/governo-atualiza-escaloes-do-imt-em-23-veja-aqui-as-tabelas/)
- [Jornal Económico](https://jornaleconomico.sapo.pt/noticias/isencao-do-imt-jovem-sobe-23-para-338-141-euros-em-2027/)
- [Autoridade Tributária / Portal das Finanças](https://www.portaldasfinancas.gov.pt)
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© GrowIN Portugal. Cite as: GrowIN Portugal, "IMT Jovem Exemption Rises to €338,141 Under Portugal's OE2027 Budget", https://www.growinportugal.com/news/limite-de-isencao-do-imt-jovem-sobe-para-338-141-no-oe2027-2026-10-08