Support for young people for the purchase of the first house has eventually increased demand and increased imbalances in the market and should therefore be withdrawn, the International Monetary Fund (IMF).
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24/06/2026
by
Lusa
Nthe report under Article IV on Portugal, released today, the IMF considers that to reduce the imbalances of the real estate market and the risks associated with the financial sector should apply supply side measures.
Government measures to support young buyers, including public guarantees and tax exemptions, “seek to improve accessibility, but increased demand and exacerbated market imbalances,” the IMF said, “should be reversed.”.
“The new reform package for government housing contains elements that can stimulate supply, but increase tax expenditure,” the institution points out, which recommends that “in order to achieve lasting improvements in accessibility, reforms should aim at reducing supply restrictions, such as making licensing, permission, zoning and land use (as planned), rebalancing real estate taxation and improving the functioning of the rental market.”.
In addition, “good targeted support should be provided to vulnerable families through dedicated social housing and housing subsidies,” the IMF concludes.
The IMT and Seal Tax exemption scheme was established by the Government in August 2024, together with the public guarantee, to support young people in buying the first house.