BENEFITS WHEN BUYING YOUR FIRST HOME

Buying your first home is undoubtedly a landmark moment in many people's lives. In addition to being a life milestone, the purchase of a first home can be accompanied by attractive tax benefits. Find out more.

What are the main financial benefits of buying your first home?

The success of acquiring your first property will always depend on external factors, such as real estate market cycles, the evolution of Euribor rates, the competitiveness of spreads on home loans offered by banks, and the stability of house prices.

However, regardless of the socioeconomic context in which you purchase your property, you can always benefit from certain advantages associated with buying your first home, which we list below.

Municipal Property Tax (IMI)

When buying your first home, you may be eligible for an IMI exemption. This tax, which varies according to the property's Taxable Patrimonial Value (VPT), has exceptions provided for in Article 46 of the Tax Benefits Statute, Decree-Law No. 215/89.

Thus, this exemption from IMI payment on the first property acquired is possible if it is intended for own permanent residence and the following requirements are met:

• Property VPT not exceeding 125,000 €.
• Owners' annual taxable income not exceeding € 153,300.00.

This temporary exemption lasts three years and can be activated a second time.

Home Loan

The debt-to-income ratio is the percentage of household income allocated to loan repayments. If you choose to buy your first home with a home loan, the fact that this is your first purchase will be beneficial, as you will not have other home loans in your name.

The fewer debts you have, the simpler it will be to get your home loan approved, and you will have access to better terms (spread, APR, interest, fees, insurance, and other services).

As support for young people buying their first home, some banks offer specific home loan deals for young people up to 35 years old.

Municipal Tax on Onerous Property Transfers (IMT)

You may also be entitled to an IMT exemption when acquiring properties that meet any of the following conditions:

• For own permanent residence with a VPT up to 97,064 €.
• Acquired for rehabilitation works.
• In forest intervention zones or classified as heritage.

Interested in buying your first home? Contact LEILOSOC® and discover our opportunities.