it was a movie i watched seven years ago. The boy falls in love with a widow woman. Once he steals her underwear. The boy's parents see this and his mother takes him to priest to purify him while his father takes him to a brothel. The town's mayor helps the widow lady with money. The movie is a colour movie, but the setting is like pre-world war age in protugal or spain (i think so). I hope NUFians could help me with this.
The only movie setting in this time period would be pan's labyrinth. It's a great movie, but doesn't fit your description... Good luck finding it!