On 8 October, the Portuguese government presented its draft state budget for 2027, which provides for the continuation of support measures for the purchase of a first home.
We’re talking about two key advantages:
Possibility of mortgage financing up to 100% with a state guarantee.
Exemption from IMT and Imposto de Selo taxes on the property purchase.
An important nuance: the extension of the state guarantee to 2027 still requires a final decision.
How much can you save?
Let’s look at the purchase of an apartment in Madeira worth €400,000.
According to the current 2026 rates:
Without youth benefits:
- IMT — €14,927.52
- Imposto de Selo — €3,200
- Total: €18,127.52
If the IMT Jovem programme conditions are met:
IMT — €0
Imposto de Selo on the purchase — €0
Savings — €18,127.52!
What if the bank only approved 80% of the mortgage?
This does not mean you lose the tax benefits!
The state mortgage guarantee and the tax exemptions are two separate support measures.
Even with 80–90% financing, the buyer can still benefit from the tax exemption if they meet the programme’s requirements.
The benefits are available to young people up to and including 35 years of age who are buying their first permanent home.
At the same time, stamp duty on the mortgage loan itself is paid separately.
What’s important to know about 2027?
The budget presented is still a draft. Final conditions will be known after it is approved.
Planning to buy property in Madeira?
I invite you to a free consultation where we will look at your options for bank financing and tax advantages.
Viktoria Pavlovskaya — real estate and investment expert on the island of Madeira.