If you are planning to buy a home in Portugal, the 2027 State Budget proposal deserves attention. Higher IMT property transfer tax thresholds could reduce the tax bill for some purchases, and the Government has announced continued support for young buyers. But paying less tax, obtaining a mortgage and comfortably meeting repayments are three separate questions.
DSIC Seixal Torre da Marinha can help connect these questions: understand your circumstances, prepare your mortgage application and compare offers from the institutions it works with, taking your purchase costs and household budget into account.
Information checked on 9 October 2026. This article examines the proposal submitted on 8 October. Measures for 2027 remain subject to the legislative process and their entry into force. The IMT figures below apply to mainland Portugal.
What does the 2027 Budget proposal change?
The most direct change for buyers is an approximately 2.3% adjustment to IMT tax bands. Article 65 of the draft legislation sets out the proposed figures.
| Measure |
Position in 2026 |
Proposal or policy intention for 2027 |
| Full IMT Jovem exemption threshold |
€330,539 |
€338,141 |
| General IMT exemption threshold for a main permanent home |
€106,346 |
€108,792 |
| Public mortgage guarantee for young buyers |
Eligible contracts signed by 31 December 2026 under the regime described by Banco de Portugal |
Continuation announced; legal and operational implementation must be confirmed |
| IRS Jovem income tax relief |
An existing benefit, subject to eligibility |
Continuation planned; the individual effect varies |
The two IMT thresholds apply to different regimes and are not added together. The general exemption does not automatically cover every residential purchase. Being aged 35 or under is not the only condition for IMT Jovem.
The young buyer regime also requires a first purchase for use as a main permanent home, not being treated as a dependent for IRS purposes in the year of transfer, and not holding ownership or partial property rights over residential urban property at purchase or during the preceding three years. Check the Tax Authority's regime information for each buyer.
IMT Jovem: what does the €338,141 threshold mean?
If approved as proposed, the full exemption threshold would rise by €7,602. A purchase that previously qualified only for partial relief could therefore fall within the full exemption.
This is an increase in the taxable value threshold, not a €7,602 payment or a discount of that amount on the property price. IMT normally uses the higher of the purchase price and the property's taxable value (VPT), as explained by the Portuguese Tax Authority.
Example: a first home costing €335,000
Consider an eligible IMT Jovem buyer purchasing the whole of a property in mainland Portugal for €335,000, to use as their main permanent home, with a VPT no higher than the price.
In 2026, that value exceeds the €330,539 full exemption threshold. Under the proposed 2027 threshold, it would be below €338,141 and could qualify for full IMT exemption if all other conditions are met and the change takes effect.
This illustrates how the threshold works; it is not a tax assessment or advice to delay a purchase. The calculation can change if the VPT is higher than the price, only a share is purchased, or buyers have different eligibility.
What about Stamp Duty?
The young buyer regime also provides relief from Stamp Duty on the property acquisition, under the applicable legal conditions. This does not exempt every tax and charge associated with borrowing: Stamp Duty on the use of credit is a separate item.
Before deciding how much cash you need, request an itemised estimate of taxes, completion costs, valuation, fees and insurance, allowing for exemptions that actually apply. DSIC can help organise the financing costs; tax eligibility should be confirmed with the competent authorities.
Will the public mortgage guarantee continue in 2027?
The 2027 Budget report announces that the public guarantee for young people buying their first home will continue. This is relevant for anyone preparing to buy next year.
However, at the time of this review, Banco de Portugal's Banking Customer Portal still gives 31 December 2026 as the deadline for contracts under the current regime. The intention expressed in the report should not be treated as an extension already available in practice. Before making commitments for 2027, confirm the rules in force and availability with a participating institution.
The guarantee can enable financing of up to 100% of the value recognised by the regime. It does not replace an affordability assessment or require a bank to approve the loan. It is also not a grant: borrowers remain responsible for repayment.
Does 100% financing mean you need no savings?
Not necessarily. Under the current regime, the relevant value is the lower of the purchase price and the bank's valuation. For a home costing €250,000 but valued at €240,000, financing 100% of that value would still leave the buyer to cover a €10,000 difference, plus other costs.
This is an illustration, not an assumption of approval. Even where the loan covers the price, it is sensible to keep money for completion expenses, moving, maintenance and unexpected events.
Can IRS Jovem help with mortgage repayments?
The official Budget portal indicates that IRS Jovem will continue. For eligible people, the effect on disposable income can matter when planning household finances. There is no identical increase in take-home pay for everyone, and continuing the scheme does not mean each beneficiary keeps the same level of tax relief over the years.
When preparing a mortgage application, consider what you actually receive, how long you expect to benefit and the margin you would have if your tax position changes. Avoid counting the same relief twice by adding an expected tax refund to a saving already fully reflected in monthly take-home pay.
A useful preparation exercise is to draw up two budgets: one using your current income and a more conservative alternative. If repayments only feel manageable in the most favourable case, it may be worth adjusting the purchase amount or building savings before proceeding.
Is it worth waiting until 2027 to buy?
That depends on the transaction and your circumstances. Compare any potential IMT reduction with rent during the waiting period, the negotiated purchase price, mortgage terms and whether the property will remain available. Delaying can bring a tax advantage while adding other expenses.
For example, three more months of rent at €900 cost €2,700. This simple calculation cannot decide the purchase, but it helps put a possible tax difference in perspective. Contractual deadlines and changes in eligibility, such as age at the relevant date, also matter.
Request two comparable estimates: a purchase under today's rules and a 2027 scenario conditional on approval of the measures. Keep the price and borrowing amount unchanged to understand the isolated tax effect, then consider what might change in practice.
Already have a mortgage? What should you review?
The IMT adjustment concerns the property purchase. It does not automatically reduce payments on an existing loan. The Budget proposal does not set Euribor or your contractual mortgage spread either.
If your aim is to reduce monthly costs, start with the current loan: outstanding balance, remaining term, interest rate, insurance, linked products and possible switching costs. Compare both total cost and repayments on equivalent terms. A longer term can reduce the monthly payment while increasing total interest.
Our mortgage guide provides a starting point, and you can ask DSIC to review your circumstances. A different offer does not necessarily make switching worthwhile once all costs are included.
How to make use of DSIC's support
You do not need to understand the entire Budget proposal or have chosen a property. To make an initial review useful, explain whether you intend to buy in 2026 or 2027, who will be buying, the approximate price and your available savings.
The team can help you:
- Set a purchase budget: relate income, commitments and financial reserves to sustainable repayments.
- Identify support to check: distinguish public guarantee requirements from tax relief and highlight what still needs confirmation.
- Prepare the application: organise the documents requested by lending institutions.
- Compare offers: understand the European Standardised Information Sheet (FINE in Portugal), APR (TAEG), total amount payable (MTIC), insurance and terms after introductory or fixed-rate periods.
- Follow the financing process: understand the steps and the difference between an illustration, an assessment and a final lending decision.
The credit intermediation service is free to the customer. Remuneration is paid by the financial institution with which the loan is concluded, as set out in our service terms. DSIC Seixal Torre da Marinha is a tied credit intermediary: it compares solutions from the institutions it works with, and the lending decision belongs to the bank. Support does not guarantee approval or savings.
Frequently asked questions
Can the proposed 2027 IMT thresholds be used for completion in 2026?
Not simply because they appear in the proposal. Tax must be assessed under the rules applicable to the transaction at the relevant date. The proposed 2027 figures depend on approval and entry into force.
Can I qualify for IMT Jovem without the public guarantee?
These are separate regimes. You may qualify for one without qualifying for the other. Acceptance under one scheme does not automatically confirm eligibility for the other.
Does being over 35 rule out any benefit from the adjustment?
No. The proposed adjustment also covers the general IMT table. The effect depends on the taxable value, the property's intended use and the regime applicable to your purchase.
Should I increase my budget because the exemption threshold rises?
The tax threshold does not measure your borrowing capacity. A more expensive home may require a larger mortgage and less comfortable repayments, even if the purchase qualifies for an exemption.
Turn the Budget news into a plan for your home
The useful next step is to establish which measures may apply to your purchase and how they fit with the financing. Use our contact form, select Mortgage Credit, and explain whether you want to buy a home or review an existing mortgage. The team will explain which information is needed; read our Privacy Policy before sending personal data.
Request a free assessment from DSIC Seixal Torre da Marinha and prepare your decision using figures relevant to your circumstances.
Sources consulted
Checked on 9 October 2026. Proposed measures for 2027 are distinguished from the regimes currently described by official bodies. Sources are in Portuguese.
