IMT (Municipal Tax on Onerous Property Transfers) exemption for young people up to 35 years old is a measure that comes into effect from August 1, 2024. This exemption applies to the purchase of the first own and permanent residence and aims to facilitate young people’s access to housing. Here are the main details about this exemption:
Exemption Criteria
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Age and Conditions:
The exemption applies to young people up to 35 years old, inclusive, on the date of the purchase deed. Young people cannot be considered dependents for IRS purposes in the year of acquisition and cannot be owners of any other property on the purchase date or in the three previous years.
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Property Value:
Full IMT exemption applies to properties whose value does not exceed 316,772 euros. For properties with values between 316,772 euros and 633,453 euros, a partial exemption applies, with an average rate of 8% on the difference. Above 633,453 euros, there is no exemption.
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Property Use:
The property must be intended exclusively for own and permanent residence. The exemption becomes void if the property is used for other purposes, such as rental or tourist activities, in the six years following acquisition, except in cases of sale, change of workplace to more than 100 km away, or changes in household composition.
Additional Considerations
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Stamp Tax:
In addition to IMT, the measure also exempts young people from paying Stamp Tax on the purchase of the first residence.
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Exclusions:
Young people who are co-owners of a property or who have inherited or received a property by donation in the three previous years lose the right to exemption.
This measure is part of a strategy to support young people in acquiring their first home, providing significant tax relief and encouraging the purchase of own and permanent residence.