Young foreigners apply for public guarantee to buy homes in Portugal

Young overseas residents in Portugal are applying for the government ’s public guarantee to purchase homes in Portugal, Brazilians being the main group according to a report in the news publication Público.

The guarantee was created by the current government for young people aged between 18 and 35 inclusive, providing a 100% guarantee on their mortgages compared to the 85% or 90% of the value of the property required by the market. It means they don’t have to stump up a 10 to 15% deposit.

As in the case of a property tax exemption (IMT) and an exemption on stamp duty, there are no limitations regarding the nationality of these young people except being registered for tax purposes in Portugal.

In order to get the guarantee, these overseas citizens will also have to show that the purchase is for their first property and is intended for their primary and permanent residence.

They must also prove that they do not have income taxable beyond the 8th IRS tax bracket. (€81,000 per annum)