How may we help you?
Frequently asked questions about mortgage loan for young adults
State Personal Guarantee for Young People
The State Guarantee is valid for 10 years from the date of the loan but ends earlier if the loan holders fulfill all obligations in contracts with a term shorter than 10 years.
Borrowers must provide the following documents when applying for a loan:
- Tax residence certificate issued by the Portuguese Tax Authority;
- Borrowers with IRS declaration: Access key to the IRS Settlement Note, or;
- Borrowers without IRS declaration with declared income to Social Security - Certificate of exemption from IRS submission + Social Security statement of declared income for the last 3 months, or;
- Borrowers without IRS declaration and recipients of social benefits: Certificate of exemption from IRS submission + Social Security statement showing the monthly value and type of social benefits received;
- Certificate of no tax debts issued by the Portuguese Tax Authority;
- Certificate of no debts to Social Security;
- Negative property registry certificate issued by the Portuguese Tax Authority;
- Certificate of No Debt from the Tax Authority;
- Certificate of No Debt from Social Security;
- Borrower's Declaration confirming that the financing will be used for the intended purpose, that the borrower has never benefited from the State Guarantee for this purpose, and that the acquired property will remain dedicated to its intended use during the Guarantee period.
Loans for construction, renovations, and financial leasing agreements are excluded from this State support.
No, it also applies to loans that partially finance the transaction value, provided the percentage is proportionally adjusted when the Bank finances less than 100%, as long as it exceeds 85% of the transaction value.
The transaction value is the lower amount between the purchase price and the appraisal value of the urban property or autonomous unit of an urban property at the time the loan is contracted. This value is determined under Article 18 of Decree-Law No. 74-A/2017, of June 23, and must be accepted by the lender.
Yes, the State Guarantee remains in place in the event of early repayment for credit transfer, as per Article 24 of Decree-Law No. 74-A/2017, provided the new institution has subscribed to this measure and has an available amount under the State Guarantee for the remaining guarantee period.
To formalize the access request, borrowers must declare that:
- The financing is intended for the purchase of a permanent primary residence;
- The purpose of the property will not change during the State Guarantee period;
- They have never previously accessed the State Guarantee..
For borrowers who are unmarried or not legally partnered, taxable income is calculated using the general rates specified in Article 68 of the IRS Code. This includes both exempt and aggregated income, minus the income quotient from prior years, as defined in Article 74 of the IRS Code, based on the latest available IRS settlement.
For joint taxation, the family quotient is applied to the total taxable income assessed at the general rates provided in Article 68 of the IRS Code, increased by exempt income included for determining the tax rate under the applicable tax legislation, and reduced by the quotient of income produced in previous years, as specified in Article 74 of the IRS Code. This is reflected in the joint IRS settlement of both taxpayers for the most recent available taxation period;
For separate taxation, the family quotient is applied to the total taxable income of each taxpayer, assessed at the general rates provided in Article 68 of the IRS Code, increased by exempt income included for determining the tax rate under the applicable tax legislation, and reduced by the quotient of income produced in previous years, as specified in Article 74 of the IRS Code. This is reflected in each taxpayer’s individual IRS settlement for the most recent available taxation period.
By submitting two documents:
- Certificate of IRS exemption;
- Social Security (or equivalent) statements confirming declared income/social benefits received and their type.
No. Credit approval depends on the Bank’s mandatory credit risk analysis, which may result in approval or rejection.
No. It does not reduce the risk of default or provide extra protection in case of default. In fact, higher loan amounts may increase risk for borrowers in adverse situations.
No. The State pays the Bank up to 15% of the initially contracted loan amount on behalf of the debtor.
Yes. The institution must verify compliance with requirements by requesting proof or declarations from borrowers.
The guarantee covers the amount exceeding 85% of the transaction value. For example, if the loan equals the transaction value, the guarantee covers 15% (100% - 85%). For loans exceeding 85% but less than 100%, the coverage corresponds to the financed percentage above 85%.
No. The guarantee applies to loans exceeding 85% of the transaction value.
Yes. The guarantee does not prevent renegotiation, including under PARI and PERSI frameworks.
Yes. The State Guarantee requires a mortgage and does not exclude additional guarantees, such as a surety.
Yes. The public guarantee ceases upon mortgage cancellation or with the Bank’s consent to the transfer, even if the mortgage guarantee is not cancelled.
Yes. Borrowers can make total or partial early repayments. Partial repayments reduce the State Guarantee proportionally.
IMT and Stamp Duty exemption for young adults
These exemptions are available to young adults between 18 and 35 years old who are purchasing their first permanent residence and are not classified as dependents for IRS purposes.
Yes. The exemption applies, but only to half of the tax that would otherwise be due. For instance, for a house valued at 250,000 euros, which would normally incur 9,478 euros in IMT plus Stamp Duty, the exemption reduces the payment to 4,739 euros since only one person qualifies for the exemption.
Yes. The exemption remains the same as in the previous scenario, so they would pay half of the tax.
No. This measure only applies to properties purchased after this date.
No. The income of young adults does not impact this exemption.