Portugal’s draft 2027 State Budget (OE2027), submitted to Parliament on 8 October, says the public guarantee for first-home buyers aged 35 or under will continue next year, along with the IMT and stamp duty exemptions. It is good news, but not yet a final decision. Here is what we know, and what it means if you are planning to buy.
What the draft budget says
- The budget report states that the public guarantee and the IMT and stamp duty exemptions for young buyers will continue in 2027.
- According to the government, these measures have already helped almost 120,000 young people, with an average purchase price of €200,000.
- The Finance Minister described the experience as “positive”, but added that the final decision has not yet been formally taken.
Does it apply to expats?
Yes, if you are tax resident in Portugal. The guarantee does not depend on nationality: a 32-year-old foreigner who is tax resident in Lisbon and buys a first permanent home can qualify. It does not apply to non-residents.
The rules in force in 2026
- Be 35 or under and tax resident in Portugal.
- Buy your first permanent home, priced at €450,000 or less.
- Own no other home.
- Have annual taxable income below €86,634 (8th IRS bracket).
- Have no tax or social security debts.
The State guarantees up to 15% of the initial loan for 10 years, which lets the bank lend up to 100% of the price. The bank still checks your debt-to-income ratio: the guarantee does not replace the credit assessment. It does not cover construction loans.
What is still uncertain
Today, only loan contracts signed by 31 December 2026 are covered. The draft budget announces that the guarantee will continue, but does not set the 2027 conditions: the deadline, price cap or income limit could change. It all depends on the budget vote (first vote on 28 October, final vote expected on 24 November) and on a decree setting the 2027 rules.
Should you wait for 2027?
If you have found a property and meet the conditions, the safest option is to sign the deed by 31 December 2026: today’s rules are known, 2027’s are not. Allow around 45 days between a complete application and signing (see the 8 steps of a Portuguese mortgage). To sign this year, start your mortgage application by early November.
If you are still looking, there is no need to rush: everything suggests the measure will continue. We will update this article at each stage of the budget.
Under 35 and living in Portugal? Book a free call back: we check your eligibility and borrowing capacity, and compare offers from several banks.
Sources: report of the draft State Budget for 2027 (8 October 2026); Decree-Law no. 44/2024 of 10 July. Article updated on 10 October 2026.
