Why the end of 2026 matters
For anyone planning to buy their first home, the end of 2026 deserves attention. Under the current rules, mortgage contracts covered by the state guarantee must be signed by 31 December 2026. Submitting the application to the bank before that date is not, in itself, enough. Between choosing the property, reviewing the documentation and completing the financing, several stages take time. Anyone intending to use this scheme should start by confirming their eligibility and checking with the bank whether the timeline of the transaction is feasible.
Who can benefit?
The scheme is aimed at people aged 18 to 35, inclusive, with tax residence in Portugal, for the purchase of their first permanent home. The requirements include not owning a residential property, not having used this guarantee before, meeting the income limit associated with the 8th IRS tax bracket and having tax and social security affairs in order. The eligible transaction value cannot exceed €450,000. For this purpose, the lower of the purchase price and the bank valuation counts. In a joint purchase, all buyers must meet the scheme's requirements and be holders of the loan.
Financing up to 100% requires bank analysis
The guarantee can enable financing of up to 100% of the transaction value considered by the scheme. Approval depends on the bank's analysis and on the availability of the guarantee at the participating institution. The buyer remains responsible for repaying the loan in full.
What to prepare before moving forward
Ask the bank for an assessment of your borrowing capacity before making any commitments. Gather proof of income and the requested documents, and set a monthly payment compatible with your household's other expenses. Also prepare the money needed at each stage of the purchase. Even with high financing, you may need liquidity for the agreed deposit, transaction costs and the move. If the valuation comes in below the price, confirm how the difference will be covered. Plan these amounts with the bank before negotiating the promissory contract. When choosing the property, keep the criteria that guided your search: location, condition and suitability for the life you want to build. The deadline should help organise the process, without replacing a proper assessment of the home and the financial commitment.
What if you buy in 2027?
The IMT Jovem and the Stamp Duty exemption on the purchase are benefits distinct from the state guarantee. The current legal framework does not foresee them ending on 31 December 2026. If the legislation remains in place, they may continue to apply to purchases made in 2027, within the conditions and limits then in force. For IMT Jovem, the criteria include being up to 35 years old on the date of purchase, not being a dependent for IRS purposes and holding no ownership rights over residential property at the time of purchase or in the previous three years. The applicable limits and values should be confirmed at the time of the transaction. The Stamp Duty exemption referred to here applies to the purchase of the property. It is not a general exemption from all charges associated with the loan.
Prepare the search for your first home
Valle Real Estate Group supports the search, the analysis of the property and the negotiation of the purchase, coordinating each stage of the process with the parties involved. Tell us where you would like to live and what you are looking for in your first home.
Information verified on 16 September 2026. The stated deadline corresponds to the current scheme and may be changed by subsequent legislation.
