You Have a Future in Portugal - Program Measures for Youth
Council of Ministers - 23 May 2024
What is the “You have a future in Portugal” program?
The government-approved program comprises a series of initiatives targeting youth, covering areas from health to homeownership. In total, 14 new measures have been sanctioned to motivate young people to "build their life project in Portugal." These measures are as follows:
1. Housing Measures
With regard to housing, the program implements a series of measures to support the purchase of a first home for young people up to the age of 35 by exempting them from IMT, Stamp Duty, and emoluments when buying a first home.
a) Municipal Property Transfer Tax (IMT) + Stamp Duty Tax (IS)
Are exempt from IMT and IS the purchases that fulfil the following requirements:
acquisition of an urban building or autonomous fraction of an urban building;
intended exclusively for own and permanent habitation;
provided that it is the first acquisition of a property for this purpose;
amount up to €316,272;
by taxable persons up to the age of 35.
(IMT) For properties above €316,272 and up to €633,453: the benefit is equivalent to the maximum exemption of the previous bracket, i.e., the maximum benefit for a €316,272 house is 5% or 7% of IMT.
(IS) For properties above €316,272: the remaining tax amount is due.
Enters into force in August 1, 2024.
b) Emoluments
Additionally, there is also an exemption from the fees payable for registering the acquisition, by transfer for consideration between living persons, of a property with a tax value of up to €316,772.
Includes exemption from the fees payable for registering loans and mortgages.
The measure will be re-evaluated after 3 years.
c) Public guarantee for 1st home purchases
The State's personal guarantee can be granted to credit institutions when the following cumulative conditions are met for the first transaction of own and permanent housing:
The borrower(s) of the contract are between 18 and 35 years of age and have their fiscal domicile in Portugal;
The borrower(s) of the contract have an income that does not exceed the 8th IRS bracket;
The borrower(s) of the contract do not own an urban building or an autonomous fraction of an urban residential building;
The borrower(s) of the contract have never benefited from the State's personal guarantee under this law;
The value of the transaction does not exceed €450,000;
The State's personal guarantee does not exceed 15% of the transaction value of the urban building or autonomous fraction of an urban building; and
The State's personal guarantee is intended to enable the credit institution to finance the entire transaction price of the urban building or autonomous fraction of an urban building.
Enters into force in August 2024.
NOTE: The value of the state's personal guarantee is added to that of the tax reduction.
2. Extension of the “Porta 65” program
Elimination of the maximum income allowed as a factor for excluding candidates;
Reduction in the number of months of payslips to be submitted as an alternative to the personal income tax return from 6 to 3 months;
Reversal of the application process: first, an application must be made to the program and, after receiving a response, housing must be sought on the market, according to the support the young person will receive; subsequently, the rental contract or promissory contract is signed;
Monthly cycle application system, with applicants sorted on the basis of income and household, guaranteeing priority support for those most in need.
Enters into force in September 1, 2024.
3. Youth Personal Tax Income (IRS Jovem)
The following rates will apply to net income from categories A and B:
This measure benefits young people who are up to 35 years old on 31 December of each year
Enters into force in January 1, 2025.
4. Student Accommodation
a) Reinforcement of the supply of beds using the installed capacity of Youth Hostels and INATEL - 709 beds distributed across the mainland municipalities with Higher Education Institutions.
These beds will be part of the offer that the Social Action Services (SAS) have and their allocation must be managed by them;
Enters into force in the 2024/25 school year (September).
b) Funding for higher education institutions to sign protocols to increase the number of beds in student residences with public, private and social sector organisations.
These beds will be part of the offer that the Social Action Services (SAS) have and their allocation must be managed by them;
Enters into force in the 2024/25 school year (September).
c) Allocation of 50 per cent of the value of the accommodation supplement for displaced students in households between 23 Social Support Index (IAS) and 28 IAS.
IAS means reference value used by Social Security to calculate and determine social benefits;
IAS for 2024 will be 509,26€;
Enters into force in the 2024/25 school year (September).
5. Working Students
a) Exemption of the student-worker's income when calculating the income per person in the household, up to an annual limit of 14 minimum wages.
6. Health and Wellness
a) An increase of 100 psychologists, nutritionists and nurses in the IPDJ's “Cuida-te+” Program, by increasing funding and extending the age of young people covered by the program from 25 to 30 (12-30 years);
Enters into force in January 1, 2025.
b) Introduction of psychologist vouchers to be distributed by higher education institutions for more than 100,000 consultations.
Provides access to mental health care for students from Higher Education Institutions;
The first Higher Education Psychologist Voucher is requested by the student who feels they need it from the Social Action services, and they are free to choose a psychology professional from a national list of providers of the Higher Education Psychologist Voucher service;
Enters into force in the 2024/25 school year (September).
c) Introduction of nutritionist vouchers to be distributed by Higher Education Institutions, for the allocation of more than 50,000 consultations.
Provides access to nutrition care for students from Higher Education Institutions;
The first cheque is also requested by the student who feels they need it from the Social Action services, and they are free to choose a professional from the national list of providers;
Enters into force in the 2024/25 school year (September).
d) Free distribution of menstrual hygiene products in primary and secondary schools and health centres.
Enters into force in January 1, 2025.
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