First-time and young buyers (2026): tax reliefs in Portugal, Spain and England
England's relief is for first-time buyers of any age: no stamp duty up to £300,000 on homes up to £500,000, for buyers who have never owned a home anywhere. Portugal's IMT Jovem is for buyers aged 35 or under buying their first own permanent home, with no IMT up to €330,539 on the mainland. Spain has no national relief; its regions cut transfer tax on a main home, some only for young buyers and some with an income limit.
Key facts
- England: first-time buyers pay no SDLT up to £300,000 and 5% up to £500,000; no relief above £500,000; no age limit.
- England's test: no buyer may ever have owned a home anywhere in the world.
- Portugal: IMT Jovem for buyers aged 35 or under on a first own permanent home; no IMT up to €330,539 on the mainland and €413,174 in the islands.
- Portugal's test: no home owned in the three years before the purchase.
- Spain: reductions are regional and need the home to be the buyer's main home; Catalonia and Valencia also test income.
Which reliefs can first-time and young buyers get?
Each country helps a different group:
| England | Portugal | Spain | |
|---|---|---|---|
| Who | First-time buyers, any age | Buyers aged 35 or under | Varies by region; some for any main home, some for young buyers |
| Past ownership | Never owned a home anywhere | No home owned in the previous three years | Valencia’s young rate needs a first main home; the others do not test it |
| The home | Main residence | First own permanent home | Main home, lived in for 3 years |
| Tax cut | No SDLT up to £300,000, then 5% | No IMT up to €330,539 (mainland), and stamp duty relief | Lower transfer tax rate |
| Price limit | £500,000 | No saving above the young table’s upper bands | Set by each region |
England’s rules are in Finance Act 2003, Schedule 6ZA; Portugal’s in the IMT Code, article 9; Spain’s in each region’s tax law.
What does a young first-time buyer pay in each place?
A buyer aged 30, buying their first home to live in, at the same euro price:
| Rank | Place | Buyer | Taxes | Fees, typical | Total on top | Share of price |
|---|---|---|---|---|---|---|
| 1 | Portugal (mainland) | Main home, tax-resident, first-time buyer, aged 30, price €250,000 | €0 | €3,500 | €3,500€2,875 to €5,700 | 1.40% |
| 2 | Portugal, Madeira | Main home, tax-resident, first-time buyer, aged 30, price €250,000 | €0 | €3,500 | €3,500€2,875 to €5,700 | 1.40% |
| 3 | Spain, Madrid | Resale, main home, price €250,000 | €13,500 | €3,631.29 | €17,131.29€15,581.29 to €18,981.29 | 6.85% |
| 4 | Spain, Andalusia | Resale, main home, aged 30, price €250,000 | €17,500 | €3,631.29 | €21,131.29€19,581.29 to €22,981.29 | 8.45% |
| 5 | Spain, Valencian Community | Resale, main home, price €250,000 | €22,500 | €3,631.29 | €26,131.29€24,581.29 to €27,981.29 | 10.45% |
| 6 | Spain, Catalonia | Resale, price €250,000 | €25,000 | €3,631.29 | €28,631.29€27,081.29 to €30,481.29 | 11.45% |
The Spanish figures use each region’s general rates where its young-buyer rate depends on income, which the calculator does not test. See reduced rates in Spain for Catalonia’s and Valencia’s young-buyer rates.
England works in pounds, so it is shown at its own prices; compare the share of the price, never a converted amount:
| Price | Taxes | Fees, typical | Total on top | Estimate range | Share of price |
|---|---|---|---|---|---|
| £200,000 | £0 | £1,450 | £1,450 | £850 to £2,050 | 0.73% |
| £300,000 | £0 | £1,500 | £1,500 | £900 to £2,100 | 0.50% |
| £400,000 | £5,000 | £1,500 | £6,500 | £5,900 to £7,100 | 1.63% |
| £500,000 | £10,000 | £1,500 | £11,500 | £10,900 to £12,100 | 2.30% |
Where do the reliefs stop?
- England: above £500,000 the relief is lost on the whole price. See first-time buyers in England.
- Portugal: IMT Jovem is a full exemption up to €330,539 on the mainland and €413,174 in Madeira and the Azores, then a reduced charge up to a higher limit, after which the young table matches the standard one. A buyer over 35 pays the own-home table and stamp duty of 0.8%. See the under-35 exemption.
- Spain: each region sets its own price or income limit. Andalusia’s young-buyer rate, for example, applies to homes up to €150,000.
Does age or past ownership matter more?
In England, only past ownership: a buyer of 60 who has never owned a home qualifies, and a buyer of 25 who inherited a share of a flat abroad does not. In Portugal, both: the buyer must be 35 or under and must not have owned a home in the three years before. In Spain, mostly age and the use of the home as a main home.
What this section does not cover
- Mortgage guarantees, deposit schemes and savings accounts for first-time buyers.
- Shared ownership in England.
- Large-family and disability rates in Spain.
- Scotland and Wales.
Buyer situations
- Stamp duty for first-time buyers in England (2026): who qualifies and what you pay
A first-time buyer in England pays no Stamp Duty Land Tax on the first £300,000 and 5% on the part from £300,001 to £500,000. Above £500,000 the relief is lost and the normal rates apply to the whole price. Every buyer must never have owned a home anywhere in the world, and must be buying it to live in.
- IMT Jovem (2026): the under-35 exemption from IMT and stamp duty in Portugal
A buyer aged 35 or under buying a first home to live in permanently pays no IMT up to €330,539 on the mainland, or €413,174 in Madeira and the Azores, and no stamp duty up to €330,539. Between that limit and €660,982 (€826,228 in the islands) IMT is charged only on the part above the limit, at 8%, and stamp duty is 0.8% of the part above €330,539, in the islands too. The relief is lost if the home is let or given another use within 6 years.
- Reduced transfer tax in Spain (2026): young buyers, main homes and families, by region
Every region covered here charges less transfer tax on some main homes. Madrid takes 10% off the bill on a main home up to €250,000. Andalusia charges 6% on a main home up to €150,000, and 3.5% if the buyer is under 35. Catalonia charges 5% to buyers aged 35 or under, and Valencia 6% or 8% to buyers under 35, both with an income limit.
Costs by price
- Buying costs in England by price (2026): stamp duty and fees from £150,000 to £1.5 million
For a buyer who owns no other home, stamp duty in England is £1,500 on a £200,000 home, £5,000 at £300,000, £15,000 at £500,000 and £43,750 at £1 million. First-time buyers pay less up to £500,000, buyers who already own a home pay 5% of the price more, and non-residents 2% more.
Comparisons
- Portugal or Spain (2026): which costs less to buy a home?
For a tax-resident buyer of a main home, Portugal usually costs less: its IMT starts at 0% and rises in bands, while Spain's regions charge 6% to 10% or more on a resale from the first euro. For a non-resident who will not move there, Portugal's flat 7.5% IMT plus 0.8% stamp duty makes Madrid and Andalusia cheaper. On a new build, Spain's 10% VAT makes every Spanish region the dearer choice.
Questions people ask
Which country has the best tax break for first-time buyers?
It depends on age and price. England's relief has no age limit but stops at £500,000. Portugal's covers buyers aged 35 or under, with no IMT up to €330,539 on the mainland. Spain's young-buyer rates depend on the region and, in Catalonia and Valencia, on income.
Can a buyer over 35 get relief in Portugal?
Not IMT Jovem. A buyer over 35 buying their own permanent home pays the own-home IMT table, which still has a zero band at the bottom, plus 0.8% stamp duty.
Does a home owned abroad stop me getting first-time buyer relief?
In England, yes: any home owned anywhere in the world, ever, rules it out. In Portugal the test is ownership of a home in the three years before the purchase. Spain's regional rates depend on the home being a main home, not on past ownership, except Valencia's young-buyer rate, which needs a first main home.
Can non-residents get these reliefs?
In England, yes, with the 2% non-resident surcharge added. In Portugal a non-resident pays the flat 7.5% IMT, with no reductions, unless they become resident within two years and claim the difference. Spain's rates need the home to be the buyer's main home.
Sources
- Stamp Duty Land Tax: residential property rates (first-time buyers)GOV.UK (HM Revenue and Customs)
- SDLTM29845: definition of a first-time buyerHMRC Stamp Duty Land Tax Manual
- Código do IMT, article 9 (IMT Jovem)Autoridade Tributária e Aduaneira (Portugal)
- Ofício Circulado 40129/2026: IMT tables from 1 January 2026Autoridade Tributária e Aduaneira (Portugal)
- Código do IMT, article 17 (the 7.5% rate for non-residents)Autoridade Tributária e Aduaneira (Portugal)