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Knowledge   >   LEGAL ALERT | Personal guarantee from the State in the granting of credit for the acquisition of permanent owned housing for young people up to 35 years old

LEGAL ALERT | Personal guarantee from the State in the granting of credit for the acquisition of permanent owned housing for young people up to 35 years old

It came into force on July 11th the decree law that establishes the conditions under which the state can provide a personal guarantee to credit institutions with a view to making it possible to grant.

In order to facilitate access to bank credit, given that banking institutions are limited in terms of the ratio between the amount borrowed and the property guaranteed, bank credit can be granted. It was established that the State can provide a Personal Guarantee when granting credit for the purchase of permanent housing for young people up to the age of 35.

In order to benefit from this personal guarantee, the following conditions must be met:

  • Be between 18 and 35 years old and tax resident in Portugal;
  • Have an income that does not exceed the 8th IRS bracket, i.e. €81,199.00;
  • Do not own any urban building or autonomous fraction intended for habitation;
  • Have never benefited from a personal State guarantee under this measure;
  • The transaction value of the property to be acquired may not exceed €450,000.00;
  • The guarantee may not exceed 15% of the transaction value, i.e. €67,500.00;
  • The guarantee is intended to make it possible to finance the entire price of the property to be acquired;

It is up to the members of the government responsible for finance, housing and youth to approve the necessary regulations for the effective implementation of this measure by 9 September 2024. We hope that with this and other measures, the housing market will be more accessible to young people, a situation that has become increasingly difficult.

Rodolfo Vieira
Trainee Lawyer