Portugal's Youth Homebuyer Program: €227M in Public Guarantees Already Used

Portugal's Public Guarantee for Young Homebuyers: A Gateway for Expats?

A major Portuguese government initiative is making it easier for young people to buy their first home, and it could present a significant opportunity for eligible foreign residents. The program, which provides a public guarantee of up to 15% on home loans, has seen a rapid uptake, with €227 million in guarantees already issued on over €1.5 billion in mortgages. This signals strong demand and a successful rollout.

The scheme is designed for first-time buyers aged 18-35 with incomes up to the 8th IRS (tax) bracket, for properties up to €450,000. For many young professionals, including expats who are fiscal residents, this can drastically reduce the required down payment, the biggest hurdle to homeownership.

This policy directly impacts the accessibility of the Portuguese property market. "For a young expat professional working in Lisbon, this scheme could be the difference between renting for another decade and starting to build equity," notes a real estate advisor. "It's a direct government subsidy that lowers the entry barrier to one of Europe's most attractive property markets." The involvement of major banks like CGD, BPI, and Santander ensures broad accessibility.

• Verify Eligibility: If you are a foreign resident in Portugal under 35, the first step is to check if your income falls within the program's limits and you meet the fiscal residency requirements.
• Engage with Banks: Approach participating banks like CGD, BPI, or Santander to understand their specific application process for the state-guaranteed mortgage.
• Target Properties: Focus your property search on homes under the €450,000 threshold. This price point covers a wide range of high-quality apartments in excellent Lisbon neighborhoods.
• Accelerate Your Plans: Given the program's rapid uptake (23% of the initial €1 billion fund used in months), acting decisively could be advantageous before the funds are fully allocated.

This government program is a clear signal of Portugal's commitment to fostering homeownership among the younger generation, including its growing expat community. Explore opportunities with realestate-lisbon.com.