The New State Guarantee for Young First-Time Home Buyers

👋 Happy Saturday friends!

Today the spotlight falls on the young, bright, and not-so-broke (now I’ve got that song stuck in my head) who are looking for more bang for their buck, and a more rewarding lifestyle. Isn’t that what the expat hustle is all about?

What you can expect to bite into today:

🚀 Hacks for Saving On Your Holiday Travels

🍰 Lost in a flour frenzy? Let’s sift through the confusion!

🏠 Living Well for Less: Portugal’s Guide to Snubbing the Rat Race for under 35s

Let’s dive in!

HUSTLE HACKS: TRAVEL

Unlock Hidden Online Deals with a VPN!

Switching up your VPN location can reveal a world of deals on flights, hotels, and online shopping! By appearing to browse from a different country, you might spot lower prices than what's offered locally. And the perks don’t stop there—use it to stream movies or TV shows unavailable in your country (yes, goodbye, content restrictions!). Just set your VPN to a country where the deal or content is available, and you're in!

This video is all about how to use a VPN and (bonus) how to stream your favorite shows wherever you are.

This video below is fantastic for booking cheap flights (hint, also using a VPN):

QUICK TIPS 🗲

Feeling overwhelmed by the variety of flours in Portugal? Don’t worry – I’ve got you covered! From bread to cake to gluten-free options, this infographic breaks down each type so you’ll always know which flour to choose. Save it for your next baking adventure!

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HUSTLE SPOTLIGHT

Portugal’s Big Carrot For The Young, Talented, and Not-So-Broke

Ever wonder why some people would choose to earn less, as long as they’re making more than everyone else?

This brings us to an old, famous experiment. Back in 1998, researchers Solnick and Hemenway asked people a fascinating question. Would they rather earn £60,000 while everyone else around them earned £40,000—or earn £80,000 while everyone else was making £120,000?

Most people went for the first option. They’d rather earn less, as long as it meant they were doing better than those around them. (What would you pick? Be honest…)

Why Do We Want to Earn More than the Next Person? 

It’s easy to pin this on greed or ego, but I think it’s something else entirely—and I’m not above admitting I might choose that option, too.

In my experience, the cost of living tends to rise to match the income of the people around you. If you’re earning below average, chances are you’re feeling the squeeze. No one wants to be constantly stretched thin just to keep up with the world around them. So naturally, many of us feel better knowing we’re “ahead.”

The Sweet Alternative: Living Well on Less 

But here’s the twist: a growing number of young professionals are breaking away from the “earn more” mentality. Instead of maxing out income, they’re optimizing where they live to make their income go further.

Portugal, surprisingly, has become a top choice for those who want a better quality of life without constantly hustling for a higher paycheck.

With a lower cost of living, beautiful landscapes, and a lifestyle that encourages savoring the little things, Portugal is redefining “rich” for the young, mobile, and adventurous.

And if you’re working remotely, suddenly that £80,000 salary can stretch a whole lot further in Portugal than in, say, London or New York. Imagine trading the hustle of big city life for sunlit beaches, affordable wine, and a bit more time to actually live.

Who Has the Better Lifestyle? 

Let’s be real. Who has the more enviable selfie: the remote-working IT analyst posing with a sun-kissed, washboard-abs surfer in Nazaré, or the high-income corporate warrior grabbing pints in Canary Wharf?

You don’t need a £120,000 salary to feel on top of the world when you’re living somewhere that values life over hustle. With the right location, it’s possible to live like a big earner while working less and spending smarter.

Portugal’s New Incentives for Young Home Buyers 

To sweeten the deal even further, Portugal has recently introduced a “You Have a Future in Portugal” initiative, with perks starting in 2025. This plan is designed to make it easier for young professionals under 35 to put down roots here with some amazing incentives:

• Tax Benefits: Expect a serious income tax break if you’re under 35, plus property tax cuts if you’re buying your first home.

• First-Time Homebuyer Benefits: The government is offering a guarantee on home loans up to 15% of the property value (under certain conditions), making it easier to secure financing without the huge down payment.

• High Quality of Life on Less: With these incentives and a lower cost of living, it’s possible to maintain a lifestyle that might cost double elsewhere.

So, if you’re a young professional with a remote job and a desire for a bit more adventure, the choice might be simpler than you think. Sunshine, a better work-life balance, and cost savings? Or another year in the rat race?

Portugal’s making it clear that there’s a “new rich” in town—young professionals who value lifestyle and financial security over endless income growth. With these incentives, Portugal is calling to those who want to earn smarter, live richer, and maybe even work a little less.

Portugal's State Guarantee for Young First-Time Buyers

One of the most attractive incentives is the state guarantee for young, first-time home buyers. Here’s a quick breakdown of the criteria and benefits, as explained by FRESH Portugal, the Expat Tax Firm that helps expats make their life in Portugal a success:

Who Qualifies?

To access this state guarantee, you need to meet all of these criteria:

• Be 35 years old or younger.

• Have a tax domicile in Portugal (nationality doesn’t matter).

• Earn up to €81,199 in gross income per year (see you don’t need that 120,000 salary anyway!)

• Be buying your first permanent home (in Portugal).

Key Conditions:

• The guarantee only applies if the property’s value is €450,000 or less.

How the Guarantee Works:

• The state covers up to 15% of the purchase price as a guarantee to the bank (but doesn’t pay this amount for you).

• You’re still responsible for 100% of the loan if you miss payments, with 85% owed to the bank and 15% to the state.

Additional Perks:

• The guarantee may still apply if only one partner in a couple is 35 or younger.

• You can combine this benefit with tax exemptions like IMT and stamp duty relief if you’re 35 or younger, or other property registration exemptions.

Owning Property Abroad:

• If you own a home in another country, you can still qualify as long as this is your first permanent home in Portugal.

So, what’ll it be? Sunshine, savings, and surfboards, or suits, taxes, and tube commutes? For the young, mobile, and ambitious, Portugal is offering a golden ticket—and it might just be one worth taking.

This article is for general info only. For details specific to your situation, it’s best to consult a local real estate or tax professional.

LOST IN LINGO

The Pirate Captain

This short story in the video above is from the amazing Susana from Portuguese Lab. It is designed for complete beginners and introduces simple grammatical structures and vocabulary. She has a great podcast and a wealth of free resources on her website for all learning levels.

Sentence of the week ✏️

Acordar Com os Pés de Fora

Literal translation: Wake Up With The Feet Outside 👣

Explanation: Waking up with your feet outside indicates someone is in a bad mood. Use this idiom any time of the day to justify someone’s grumpiness. Either state it about someone else or ask them directly: Acordaste com os pés de fora? (Did you wake up with your feet outside?)

More about feet… in Portuguese, toes are called “fingers of the feet”, (dedos do pé), and they’re not the only country! Only the countries in green below have a word for “toes”, the rest default to this stranger fingers thing. 🤷‍♀️

3 CHEERS! 🎉✨🎉

Let’s celebrate!

I have some exciting news in the pipeline! I will collaborate with a fantastic tax firm to answer all your burning tax and immigration questions in a Q&A section of The Expat Hustle once per month. Keep your eyes open for more info soon!

How about you?

• Started a new gig or side hustle?

• Landed a job?

• Received a local award?

• Celebrating a milestone on your expat journey?

Send me your small (or big) wins and we’ll raise a glass to you in the next newsletter.

Thanks for reading! 💌

Hustle on!

Angelique🧞‍♀️

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PS, what’s your hustle story? Write to me and you could be in the next hustle spotlight!

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