As part of a strategy to attract and retain young talent under 35, the Portuguese government has proposed a series of tax and credit benefits for this age group, including foreign professionals seeking to establish themselves in the country.
These measures facilitate access to housing and reduce tax burdens; accordingly, they create a favorable professional and personal development environment, especially for those seeking financial stability and lower tax rates in Europe.
Tax Exemptions for Home Purchase
One of the main measures is the exemption from the Municipal Property Transfer Tax (IMT), which is applied to real estate purchase transactions and ranges from 6% to 8% depending on the property’s value.
For individuals under 35, this exemption is granted if the property value does not exceed 316,000 euros, while a partial exemption is available for properties valued between 316,000 and 633,453 euros.
This reduction in the initial cost of homeownership significantly lowers the initial investment required to acquire property in the country.
Public Guarantee on First Home Purchase
Portugal has also implemented a state-backed guarantee for first-time homebuyers to facilitate access to mortgage credit. This program allows banks to finance up to 90% of the property value, while the state covers the remaining 10% (and up to 15% in some cases).
To access this guarantee, young people must meet certain requirements, such as having annual income that does not exceed 81,199 euros, not owning another property, and not having previously received state-backed guarantees.
This measure is particularly relevant for young foreigners who face challenges accessing property ownership in their home countries. It could position Portugal as an attractive and accessible option for those seeking stability and quality of life in Europe.
An Incentive to Attract Young Talent from Abroad
Portugal has seen a growing labor demand in sectors like technology, engineering, and financial services, and the government recognizes that attracting qualified professionals is crucial for its economy and social development.
Moreover, the quality of life in Portugal, along with these incentives, enhances the country’s appeal for those seeking stability and opportunities for professional growth.
This initiative comes at a time when other countries are launching similar measures, as is the case in Spain, where policies have been developed to attract digital nomads.
Portugal, however, seeks to differentiate itself by offering a unique combination of benefits aimed not only at temporary professionals but also at those looking for a more permanent residence.
You Could Access These Benefits with AIM Global
These tax benefits implemented by the Portuguese government are not only designed to curb the departure of young citizens, but also to create an attractive ecosystem for foreign young talent, positioning itself as a hub for innovation and development in Europe.
A Digital Nomad visa could be the perfect pathway to obtaining residency in Portugal and accessing these tax exemptions.
At AIM Global, we have an expert team ready to advise you on this investment. With offices in Lisbon, Portugal, our professionals can help you select a property that suits your needs and meets the legal requirements for these benefits. Whether as a digital nomad or through another type of visa, AIM Global helps you realize your international mobility projects. Schedule a meeting with us today; you won’t regret it.
