In recent years, demand in the real estate market has been far greater than the available supply. This situation has had an effect on property prices, with a constant increase in the value of housing, especially in areas with high urban density. We could speculate on the specific reasons for this phenomenon as well as the measures needed to alleviate housing prices and access. A series of measures need to be taken and put into practice, so that as a whole they have a general price-relieving effect.
In this regard, one of the government’s recent measures is aimed at easing the costs of access to housing. The publication of Law no. 30-A/2024, of June 20, aims to exempt Municipal Tax on Transfers (IMT) and Stamp Duty (IS) in certain circumstances.
What are the facts of the new law?
IMT exemption.
IS exemption.
Only applicable to the first purchase of a permanent home (residence).
Available to young people aged 35 and under.
In the year of purchase they are not listed as dependents in the household (IRS).
The purchase price of the property is equal to or less than 316,772 euros.
The exemption from IMT and IS is valid for six months.

What is still unknown?
Date of entry into force. According to the information available, the law should come into force on August 1, 2024.
Its applicability should take practical effect 60 days after publication of the date of entry into force, i.e. October 1, 2024.
If access is exclusive to Portuguese citizens living in Portugal, everything currently indicates that it is.
In practical terms, what will it be like if one buyer is under 35 and the other is over 35? In this case, only the buyer under 35 will be exempt. The whole will have a 50% exemption.
Whether the 180-day deadline will be extended.
What are the current consequences and how should the market behave?
We have already seen that customers in that age group have made a decision to buy.
It should continue until the law has practical effect.
On the other hand, once the law comes into force, demand from buyers aged 35 or under is expected to grow significantly.
In fact, we already have a strong portfolio of clients eligible for exemption from both taxes.
In addition, six months is a relatively short time to follow up on all these cases.
Depending on the success of the law, it is possible that it will be extended beyond 180 days.
Strong demand is expected for properties up to the 4th tier (worth 316,772 euros).
The next few months will be interesting in the real estate market, particularly for agents who have a portfolio of this type of property. Although there are some practical aspects to be clarified, it is prudent to start your acquisition process at this time as the pressure on contract execution is greater.