IMT exemption for young people: left says it “benefits those who don’t need it”, right wants to go further
The Government took to Parliament this Tuesday its proposal for authorization to implement measures related to the exemption from IMT and stamp duty for young people up to 35 years of age. If passed, the Government can legislate without the proposal being debated again in Parliament. The votes are only on Wednesday, but the measure has already raised criticism and doubts in this Tuesday’s debate.
The Minister of Youth, Margarida Balseiro Lopes, began the debate by describing the current situation, indicating that Portuguese young people are among those who later leave their parents’ home. Having said that, she considered that the initiative “on its own will not solve all the problems that young people face,†but it is “a first step†towards ensuring conditions for them to “thrive in their countryâ€.
It should be remembered that the Government’s proposal provides for exemption from IMT on houses up to around 316,772 euros and a discount on houses up to 633 thousand euros, on the purchase of their first permanent home by young people up to © at 35 years old.
Benefits those who don’t need it
The value set by the Government for the exemption and discount is one of the criticisms from the left. “There is an exemption up to 316 thousand euros and significant reductions up to 633 thousand euros. Nobody believes that a young person in Portugal can buy a house for 633 thousand euros and, if they can, nobody believes that they need this tax benefit,” declared Marisa Matias, BE deputy.
Paula Santos, from the PCP, recalled that in the Government’s program “there is no fight against speculation nor any intervention to reduce prices”, pushing young people “towards the debt†.
In turn, Miguel Costa Matos, from the PS, characterized the proposal as a “fiscal freebie†. “The average transaction value is 210 thousand euros,†he said, asking later “which young people would really be supported.†He replied: “It is only young people who can now buy a house.â€
But socialist criticism goes beyond the proposal itself. Miguel Costa Matos criticized the fact that the Government presented an authorization proposal “which issues a power of attorney to carry out [executivo] what they want, especially in taxation, which is an exclusive competence of Parliament.†. He then challenged the Government to effectively present a bill to be debated in the Assembly of the Republic.
The authorization proposal is an act through which the Assembly of the Republic can empower the Government to legislate on matters within its exclusive competence – in this case, taxes. Thus, the executive could legislate on this matter without discussing the matter again in Parliament. Otherwise, you can take the proposal back to Parliament, either separately or in the State Budget.
Livre also questioned the minister about the number of young people that the support would benefit. The minister indicated that it would depend on the number of transactions, but stated that, in 2023, there would have been approximately 13 thousand transactions. That year, around 130 thousand houses were transacted, that is, young people under 35 years old represented 10% of total transactions.
Why stop at 35?
If the left wants less, the right wants more. Rui Afonso, from Chega, said that the party “follows the Government’s proposal†, but considers that the “fiscal relief ceilings are clearly insufficient, especially in terms of the maximum value of the housing to be acquired and the maximum age of beneficiaries†. In the proposal submitted by Chega, also to be voted on on Wednesday, a limit of 400 thousand euros and 40 years for the exemption is indicated.
The Liberal Initiative also questioned the Government about age. “They would be available to change [o limite de idade] and be for everyone, but depending on income?†asked Bernardo Blanco.
The PAN would also like to see the age increased to 45 years old – and presented a proposal to that effect, which would depend on the area of the territory where the person is located.
In the final statements, Rita Matias, from Chega, recalled that her party had already delivered similar proposals in 2022, 2023 and 2024, which were always failed – sometimes by the PS, sometimes by the PSD, sometimes by both.
