The exemption from the Real Estate Transfer Tax (IMT) granted to young individuals purchasing their first home does not require repayment to the state if the property is sold, even within six years, according to tax authorities.
An official statement released on September 10 by the Tax and Customs Authority (AT) addressed an inquiry from a young taxpayer regarding the “IMT- Jovem” policy. The inquiry involved the circumstances under which a person selling a Primary and Permanent Residence (HPP), acquired with the tax incentive, might be required to return the benefit.
While the response is specific to this instance, the legal and tax framework is applicable to other young individuals in similar situations.
Who qualifies for IMT exemption?
The “IMT- Jovem” is available to individuals up to 35 years old, as was the case for the taxpayer involved, who purchased their first property in December 2024.
However, Article 11 of the IMT Code stipulates that tax benefits, exemptions, or rate reductions are void if within six years from acquisition the property’s use changes from that for which the benefit was granted.
Forfeiture means having to return the incentive to the state. With the young owner selling the property after six months, clarification was sought on whether repayment was necessary.
There are several “exceptions”
The Tax Authority stated that selling the property constitutes a “different use” of the property within six years of acquisition, which alone is enough to void the benefit.
However, the IMT Code makes allowances for several “exceptions” — and selling the property is “the first” of these cases.
“Despite the sale during this period breaching the required six-year ownership obligation of the subject, and representing a shift from the intended use for which the exemption was granted — the subject’s primary home — it does not trigger the forfeiture of the benefit,” noted the AT.
This is because the sale represents an exception to this voidance, expressly stated in subparagraph i) of paragraph a) of Article 11, section 8 of the IMT Code, the AT explains.
The same response indicated that the taxpayer’s query was “broader,” concerning whether the subsequent home purchase affects the continuation of the IMT exemption previously granted.
The AT’s conclusion remains the same: “Selling the property acquired with the IMT-Jovem benefit and purchasing a new property for HPP purposes (expected within six months) does not on its own lead to the benefit’s forfeiture.”
In this case, the taxpayer’s purchase is expected “around February 2026,” which is deemed “irrelevant” in terms of ending the tax incentive, the AT concludes.
