Tax Authority Confirms IMT Exemption for Young Buyers is Maintained Upon Early Sale of Property
Portugal's Tax and Customs Authority (AT) has issued a binding information ruling clarifying that young homebuyers who benefit from the 'IMT Jovem' tax exemption do not lose this benefit if they sell the property before the end of the legally stipulated six-year period. The ruling, published on the Portal das Finanças, states that the sale of the property is a specific exception to the rules that would normally cause the tax benefit to lapse.
The clarification addresses a query from a taxpayer under 35 who had acquired a property for a primary residence in December 2024 using the IMT exemption and subsequently sold it in June 2025. The core of the issue revolved around whether giving the property a 'different destination'—in this case, selling it—before the six-year term expired would necessitate the retroactive payment of the waived Municipal Property Transfer Tax (IMT).
According to the AT's analysis of the CIMT code (Article 11, No. 8, paragraph a), the law foresees situations that would nullify the exemption. The primary condition for the benefit is that the property serves as the owner's own permanent residence for six years. While a sale inherently changes this status, the law explicitly lists the act of selling as an exception to the clawback rule.
The Tax Authority's document explains that although the sale represents a failure to maintain the property's use for the full six-year term, the legislation itself provides for this eventuality. "Despite the sale in that period necessarily translating into non-observance of the obligation of permanence... it does not trigger the lapse of the benefit," the official notice states. This interpretation provides legal certainty for beneficiaries of the program.
The AT further clarified that the maintenance of the exemption is not contingent upon the acquisition of a new property. The taxpayer in question had entered into a promissory agreement for a new home, but the AT determined this fact to be irrelevant to the status of the original exemption. "The sale, before the six years, constitutes, 'by itself,' an exception to the lapse of the benefit," the authority determined, adding that the law does not impose any further conditions, such as reinvestment, to validate this exception.
The 'IMT Jovem' incentive, a measure to support first-time homebuyers aged 35 and under, provides a full IMT and Stamp Duty exemption for properties with a value up to €324,058. For properties valued between that amount and €648,022, a partial exemption is applied. The law also specifies other scenarios that do not cause the benefit to lapse, including changes in the household composition or a mandatory job relocation to a site more than 100 kilometers away.
This official clarification from the Tax Authority is a significant legal confirmation for the real estate market. It assures young homeowners and their legal representatives that the financial benefit of the IMT exemption is secure, even if the property is sold within the first six years of ownership. The ruling removes ambiguity and potential financial penalties for a key demographic of property buyers in Portugal.
The decision reinforces the stability of the legal framework surrounding property transactions for young buyers. It confirms that the legislative intent was to provide a robust incentive without unduly penalizing mobility. This information is critical for legal professionals, real estate agents, and financial advisors guiding clients through the property acquisition process in Portugal. Navigate Portuguese property regulations with expert guidance at realestate-lisbon.com.
