The IMT Jovem program was created to help those under 35 years of age to buy their first home, relieving the burden of transfer tax, but there is a detail that can go unnoticed and be expensive: the benefit does not apply to land for construction. The Tax Authority (AT) has now officially clarified this issue, and the answer will not please anyone who dreams of building a house from scratch.
According to the AT, the exemption provided for in the IMT Jovem is exclusive to urban buildings or autonomous units intended for permanent housing.
Urban land, even if the project has been approved or works have begun, are automatically excluded from the benefit.
Land does not count as housing
According to the same source, “an urban land, even if with an approved project or work in the initial phase, is not considered a building intended for housing at the time of its acquisition”.
The clarification eliminates any doubt about the legal framework and prevents the purchase of land from being covered by this exemption.
Justifies the decision with the need to keep the program simple and clear, avoiding ambiguities about construction deadlines or changes in land use. The objective of IMT Jovem is to encourage immediate access to housing, not future construction, explains the official publication.
Young people who build are left out
The measure leaves out a relevant segment of young buyers who, instead of buying a ready-made house, prefer to invest in land and build.
Tax experts and sector associations already consider that the program should be more comprehensive, allowing the benefit in cases where the land is intended for the construction of permanent housing, with defined deadlines and criteria.
According to the same source, this limitation could hinder part of the Government’s intention to facilitate young people’s access to housing, since the total cost of IMT on land can reach high values, especially in urban areas.
How IMT is calculated
Until there are legislative changes, whoever buys land will have to pay the tax in full.
The value is calculated based on the declared transaction price or the asset value of the land, whichever is higher. The difference can represent thousands of euros in costs, even for those who intended to build their own home.
The IMT Jovem program continues to be active and attracting new beneficiaries, but the warning is given: buying land does not count. And this small detail can make a big difference in the wallet of those who are taking the first steps towards owning their own home.
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