The government estimates that the exemption from IMT and stamp duty on home purchases by young people will cost around 25 million euros per semester and 50 million euros in 2025, the finance minister said on Wednesday.
Miranda Sarmento was speaking at a hearing of the Budget, Finance and Public Administration Commission (Cofap), where PS MP Carlos Pereira questioned him about the costs associated with various spending and revenue measures approved by the government, some of which he noted that the Socialist MPs had not included in the executive program.
If IMT and stamp duty are exempted for the purchase of a first home by people under 35, this would amount to €25 million per semester. The measure is expected to be implemented in August, and €50 million in 2025.
The list of tax measures approved by the government, whose cost is being questioned, also includes a change to the “participation exemption” regime, with Miranda Sarmento saying he estimates the revenue loss will be “less than 100 million euros”.
This is a measure that exempts from taxation dividends and possible capital gains received by companies resident in Portugal that hold, for a period of more than one year, shares equal to or greater than 5% of the share capital or voting rights of the company distributing profits – currently the participation limit in the entity distributing dividends is 10%, with no exceptions for lower participation rates.
Regarding the extension of the deduction of expenses for financing concentration operations, the minister did not name a global figure, saying that it depends on the number of operations and could cost 190 thousand euros per operation.
Also, when asked about the changes in SIFIDE (System of Tax Incentives for Business Research and Development) and the review of the system of tax deductions for “good reputation” in acquisitions, Miranda Sarmento replied that the measures will continue to be calibrated, and only within the framework of the State Budget for 2025 will it be possible to see what the margin is.
Still on the list of measures affecting revenue, the Finance Minister specified that the reduction of the IRC rate from the current 21% to 15% by the end of the legislative term at a rate of two percentage points per year would have an annual impact on revenue of 500 million euros (250 million euros per percentage point).
However, the minister noted that this accounting of lost income does not take into account the positive impact the measure could have on investment and employment.
In the case of the “New Regime for Attracting Talent – IFICI+” (the measure that replaces the non-habitual resident regime), namely the regulation of what is already provided for in the law, with the aim of extending it to income from employment (categories A and B) of certain qualified professionals, the Minister did not specify the cost of this measure, stating that it is about attracting to Portugal people who are not currently resident here and who, in addition to the 20% IRS rate that they will pay, will also contribute to the receipts from taxes levied, for example, on consumption or assets.