According to the Tax Authority, people up to the age of 35, who hold a share in an undivided inheritance, can benefit from exemption from Property Transfer Tax (IMT) and Stamp Duty when buying their first home.

The tax benefit applies when the inheritance remains undivided, and all other requirements are met, as stated in a binding ruling released by the Tax Authority.

Many heirs hold rights to undivided inheritances, including real estate, but if a formal division of assets has not taken place, those heirs can be exempt from the Property Transfer Tax.

While the inheritance remains undivided, the heirs “cannot be considered holders of the right of ownership in relation to any of the specific assets that make up those inheritances," according to the Tax Authority. The existence of a share in an undivided inheritance does not constitute a cause for exclusion from the exemption.

Successful scheme

This scheme only provides exemption from Property Transfer Tax and Stamp Duty on the purchase of a young person’s first primary and permanent residence, given that said person does not already own a home at the time of the purchase or has been in the three years prior to that.

In a quote to Reuters in January 2026, Portugal’s finance minister, Joaquim Miranda Sarmento, said that the scheme had already proven effective: "I believe these measures are now considered successful, having enabled many young people to buy homes.”

Effective since late 2024, more than 70,000 applicants have benefited from the scheme in just over a year. The scheme exempts first homes valued at just over €300,000, with a partial exemption applying to homes costing a little more than €600,000.