The preliminary version of the LOE 2026 proposal, submitted to Parliament on October 9, provides for changes in the brackets on which the IMT tax is levied on the purchase of urban buildings, or autonomous fractions of urban buildings, intended exclusively for housing, whether or not they are owner-occupied and permanent.
According to the proposal, the brackets used to determine the applicable IMT tax rate in 2026 will be increased by 2%.
Thus, the purchase of urban buildings up to a value of €106,346 will be exempt from IMT when used exclusively for housing, whether or not it is owned and permanent, representing an increase of €2,085.22 compared to the current base settlement value of €104,261.
The 7.5% rate corresponding to the last bracket, currently applicable to transactions worth more than €1,128,287, will, in 2026, be applied to purchases worth more than €1,150,853.
IMT Jovem (Youth Property Transfer Tax) also updated by 2%
In force since August 1, 2024, the ‘IMT Jovem’ provides for exemption from IMT on the first purchase of an urban building or autonomous fraction of an urban building intended exclusively for own and permanent housing, whose value does not exceed the maximum of the first bracket of the IMT table provided for this purpose, by young people who are 35 years of age or younger on the date of transfer and who, in the year of transfer, are not considered dependents for the purposes of the IRS Code. The maximum value of this bracket will increase from €324,058 to €330,539 in 2026.
For purchases in 2026 above €330,539 and up to €660,982 (currently €648,022), a partial exemption will apply up to the threshold of the first bracket, with a marginal rate of 8% applying to the remainder. For properties valued at over €660,982, there will be no exemption.
As already provided for, young people who hold ownership rights, or partial ownership rights, over urban residential buildings on the date of transfer or at any time in the previous three years are excluded from the exemption. On the other hand, as with other situations provided for in the IMT Code, young people also cease to benefit from the exemption when the properties are not used for their own permanent residence within six months of the date of acquisition or are used for a purpose other than that on which the benefit was based within six years of the date of acquisition, except in cases of sale, or change in the composition of the household or place of work to a distance greater than 100 km, provided that in both cases the building remains exclusively for housing. Young people also cease to benefit from the exemption if, during the six-year period from the date of acquisition, they are at any time considered dependents for the purposes of the IRS Code.
In the same cases provided for IMT exemption, young people also benefit from an exemption from Stamp Duty (IS), through a deduction from the collection of amount 1.1 of the respective General Table (0.8% on the purchase price), with the limit resulting from the application of the aforementioned amount up to €330,539 in 2026 (currently €324,058). For properties of a higher value, IS will be payable on the remainder.
Image credits: © Towfiqu Barbhuiya | Unsplash
Translated with DeepL.com (free version)
