The public guarantee for young buyers: buying a home with no deposit, explained without legalese

The Portuguese State now acts as guarantor for part of the loan, which opens the door to financing the whole property. But there are rules, a deadline and small print worth reading before you get excited.

The problem this was meant to solve

For years, the biggest obstacle to buying a first home was not the instalment. It was the deposit. Under Banco de Portugal rules, banks finance up to 90% of the property value, which means having the other 10% set aside, plus taxes and deed costs. On a €200,000 home that is €20,000 before you even mention IMT.

For anyone paying rent and just starting out, saving that amount can take a decade. The public guarantee exists to shortcut that path.

What it is, in two sentences

The State becomes guarantor for up to 15% of the loan amount. In practice, the bank can finance up to 100% of the property, because the slice it would normally require as a deposit is now guaranteed by the State.

Be clear about what it is not: the State does not give you money, does not pay your instalment and does not lower your interest rate. The loan is yours and so are the repayments. If you default, the State answers to the bank for that slice and then comes to collect from you.

Who can apply

• Be between 18 and 35 (if there are two borrowers, both).
• It must be your first permanent main residence: you cannot own another home.
• Taxable income up to the 8th IRS bracket, which in 2026 means €86,634 a year.
• Property value up to €450,000, taking the lower of the price and the bank valuation.
• Tax residence in Portugal and no debts to the tax authority or Social Security.
• Debt-to-income ratio below 50% after taking out the loan.
• Contract signed by 31 December 2026. The guarantee lasts 10 years.

The tax bonus that stacks on top

The guarantee stacks with the IMT and stamp duty exemption for buyers aged 35 or under: full exemption up to €330,539 of purchase value and partial up to €660,982. On a €300,000 home that is roughly €10,500 of IMT and €2,400 of stamp duty that stay in your pocket.

Put the two together and the picture changes: zero deposit and zero purchase taxes. What is left for you to pay are the deed, registrations, the valuation and the stamp duty on the loan (0.6% of the amount).

A worked example

What nobody tells you at the branch

• Financing 100% means starting with zero equity in the home. If you need to sell in the first few years, you could owe more than the home is worth.
• The bank still assesses your ability to pay. The guarantee protects the bank; it does not approve your loan automatically.
• Each bank applies the scheme its own way: spreads, insurance and fees vary. That is where comparing makes a difference.
• The scheme has an end date and has already been extended once. If your plan is to buy in 2027, do not count on it without checking.

Where the Guru comes in

We are a credit intermediary: we run the process with the partner banks, compare the terms each one offers with the public guarantee and explain what changes in your instalment under each scenario. It costs you nothing, because the banks pay us. If you want to start with the numbers, the purchase costs calculator already has the option for buyers aged 35 or under.