There has been a great deal of interest in the state guarantee granted to young people who wish to purchase their first home in Portugal.
It is important to first clarify who has access to it and in what situations.
In order to have access to this benefit, someone must meet the following cumulative requirements:
- be up to 35 years old (inclusive)
- have tax domicile in Portugal (regardless of nationality)
- have a gross income of up to €81,199.00 per year
- be purchasing their first permanent home If you are one of these people, you must also bear in mind that the guarantee will only be granted if the amount does not exceed €450,000.00.
Will the Portuguese State pay for me the amount financed by it?
The Portuguese State is responsible, before the bank that finances your purchase, for up to a maximum amount of 15% of the purchase value of the property, provided that the cumulative requirements are met. However, it does not pay for you! It only assumes the risk if you fail to pay the installments arising from the bank financing.
Of course, to benefit from this benefit, you will always have to secure bank financing, a decision that is the sole responsibility of the lending bank.
If you fail to meet your obligations, you will always be responsible for paying 100% of the financed amount, of which 85% will be owed to the bank that financed you and 15% to the state, which assumed the risk before the bank and will have to assume responsibility for this 15% before the bank.
Of great importance is the possibility of this guarantee being partially applied, in the case of a couple in which only one of them is 35 years old or younger.
In addition, it could be highly beneficial to combine this guarantee with the exemption from IMT and stamp duty for young people up to 35 years old, or the exemption granted in property registrations.
What if I have a house in another country? Does this benefit also applies to me?
At first glance, we understand that the expression “first permanent home” implies that it is in Portugal, and therefore anyone who has a home in another country can enjoy this benefit. However, we understand that the benefit does not apply to those who live in another country.
Considering its newness and the fact that it is not yet being applied, we will have to wait for more concrete information on this.
We await September 11th, when we will have more news about this magnificent benefit, the date on which it will begin to be applied!
