One of the most common questions from those using a Young Mortgage (young home loan) is whether they can sell their house at any time without losing the IMT (Property Transfer Tax) exemption and Stamp Duty exemption.
The answer is yes, it is possible to sell the house before 6 years, even if you used a young mortgage. However, there are some important points you should understand.
What does the law say?
There is a common belief that you are “required” to keep the property for 6 years, but this is not entirely true.
What actually exists is a rule linked to the tax benefits granted when purchasing a primary and permanent residence.
According to the IMT Code (CIMT) and the Autoridade Tributária e Aduaneira, you can sell the property before 6 years without losing the tax benefits or facing penalties. In practice:
- The property must have always been used as a primary and permanent residence
- You must not have rented it out or changed its use
When can you lose the benefits?
The loss of the IMT exemption and Stamp Duty exemption only happens if there is misuse of the property — meaning if you change its intended use. For example:
- Renting out the property before 6 years
- Converting it into a second home
- No longer living in the property
In these situations, you may have to pay the taxes that were initially exempted.
What about 100% financing?
The public guarantee (100% financing) works similarly to any other mortgage and does not limit your ability to sell the property, nor does it affect the tax exemptions. In practice:
- When selling the house, the sale proceeds are used to repay the loan
- The bank issues a mortgage discharge after the loan is settled
- The public guarantee ends once the loan is fully repaid
Do you have questions about your situation?
If you are thinking about buying or changing homes, you can simulate your mortgage using our calculatores and discover the options available to you.
If you want to understand the best decision for your situation, you can speak with a specialist here.