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Buying property in Lisbon requires careful financial planning, particularly when it comes to deposit requirements.
As of September 2025, most property buyers in Lisbon need a deposit ranging from 10% to 30% of the purchase price, with non-residents typically required to provide deposits at the higher end of this spectrum. The exact amount depends on your residency status, age, financial profile, and whether you qualify for government assistance programs.
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Property deposits in Lisbon typically range from 10-30% of the purchase price, with residents paying 10-20% and non-residents usually 30%.
First-time buyers under 35 with Portuguese tax residency can access government programs offering 100% financing with no deposit required.
| Buyer Type | Typical Deposit Required | Special Programs Available |
|---|---|---|
| Portuguese Residents (Strong Financial Profile) | 10-20% | State Guarantee Program (if under 35) |
| Non-Residents/Foreign Investors | 30% | None |
| First-Time Buyers (Under 35, Tax Residents) | 0% (with State Guarantee) | 100% Financing + Tax Exemptions |
| EU Residents (Some Banks) | 20-25% | Limited |
| Low Credit Score Buyers | Higher than standard | None |
| Off-Plan/New Build Buyers | 10-30% + Staged Payments | Developer-specific incentives |
How much deposit do I need to buy a property in Lisbon?
The deposit required to buy property in Lisbon ranges from 10% to 30% of the purchase price, depending on your residency status and financial profile.
Portuguese residents with strong financial credentials typically need deposits of 10-20% of the property value. This lower requirement reflects reduced lending risk for banks when dealing with local residents who have established credit histories and stable employment in Portugal.
Non-residents and foreign investors face higher deposit requirements, usually around 30% of the property price. Portuguese banks consider non-resident buyers higher risk due to potential difficulties in legal recovery if mortgage payments default. As of September 2025, this 30% requirement remains standard across major Portuguese lenders including Millennium BCP, Santander, and Caixa Geral de DepĂłsitos.
The deposit amount also depends on your age and first-time buyer status. Buyers under 35 who are Portuguese tax residents and purchasing their first home can access government guarantee programs that may eliminate the deposit requirement entirely.
It's something we develop in our Portugal property pack.
Are there any government programs or incentives for first-time buyers in Lisbon that could reduce the deposit?
Yes, Portugal offers a significant State Guarantee Program specifically designed for young first-time buyers that can eliminate deposit requirements entirely.
The program targets buyers aged 18-35 who are Portuguese tax residents and purchasing their first home. Under this scheme, the Portuguese government provides a guarantee for up to 15% of the property value, enabling banks to offer up to 100% mortgage financing. This means qualified buyers can purchase property with zero upfront deposit.
Additional benefits include exemptions from IMT (property transfer tax) and stamp duty, which can save thousands of euros in closing costs. The program is also available to eligible foreign residents who have established Portuguese tax residency and meet the age and first-time buyer criteria.
Unfortunately, no equivalent programs exist for non-residents who don't meet Portuguese tax residency requirements. These buyers must rely on standard commercial lending terms, which typically require the full 30% deposit for foreign investors.
The program has proven popular since its introduction, with thousands of young Portuguese residents successfully accessing 100% financing through participating banks including Santander, Millennium BCP, and Novo Banco.
What is the typical deposit amount for purchasing a property in Lisbon?
The typical deposit amount varies significantly based on buyer residency status, with clear distinctions between resident and non-resident requirements.
| Buyer Category | Typical Deposit Percentage | Example on €400,000 Property |
|---|---|---|
| Portuguese Residents (Strong Profile) | 10-15% | €40,000 - €60,000 |
| Portuguese Residents (Average Profile) | 15-20% | €60,000 - €80,000 |
| EU Residents (Select Banks) | 20-25% | €80,000 - €100,000 |
| Non-EU Residents/Foreign Investors | 30% | €120,000 |
| First-Time Buyers Under 35 (Tax Residents) | 0% (with government guarantee) | €0 |
| Poor Credit History | 35%+ or loan denial | €140,000+ |
Do I need to provide a deposit upfront before making an offer on a property in Lisbon?
No, you do not provide the main deposit before making an offer, but a small reservation fee may be required once your offer is accepted.
The property purchase process in Lisbon follows a specific sequence. First, you make an offer on the property. Once the seller accepts your offer, you may be asked to pay a reservation fee of typically €5,000 to €10,000 to secure the property while legal documents are prepared.
The main deposit (10-30% of the purchase price) is only paid when you sign the Contract of Promise of Sale and Purchase (CPCV), which is the legally binding pre-sale contract. This typically occurs 2-4 weeks after your offer is accepted, giving time for legal due diligence and mortgage pre-approval.
Never pay significant deposits before the CPCV is signed and reviewed by your lawyer. The reservation fee paid earlier is offset against your final deposit amount, so you don't pay twice.
This structured approach protects buyers from paying large sums before legal protections are in place through the formal CPCV contract.
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How does the type of property affect the deposit required in Lisbon?
Property type has minimal impact on deposit percentages in Lisbon, but payment structures and timing can vary significantly between different property categories.
For existing apartments and houses, deposit requirements remain consistent at 10-30% based on buyer residency status rather than property type. Whether you're buying a traditional Portuguese townhouse in Alfama or a modern apartment in Parque das Nações, the same deposit rules apply.
New build and off-plan properties often require staged payment schedules. Developers typically request reservation deposits of €5,000-€10,000 upon initial booking, followed by larger staged payments as construction progresses. The total deposit amount remains within standard ranges, but payment timing spreads across the construction period.
Renovation projects may trigger more stringent due diligence requirements from lenders, potentially requiring detailed renovation budgets and contractor quotes. However, deposit percentages typically remain unchanged unless the property has structural issues that increase lending risk.
It's something we develop in our Portugal property pack.
What is the minimum deposit required if I am a non-resident or foreign investor in Lisbon?
Non-residents and foreign investors typically face a minimum deposit requirement of 30% when purchasing property in Lisbon.
This 30% requirement applies universally across Portuguese banks for non-resident borrowers, regardless of nationality. Whether you're American, British, Brazilian, or from any other country, the same 30% minimum deposit applies if you don't have Portuguese tax residency.
Some banks may offer slightly lower requirements (around 25%) for EU citizens who can demonstrate strong financial stability, excellent credit history, and significant liquid assets. However, these exceptions are rare and typically require substantial documentation and higher income levels.
The higher deposit requirement for non-residents reflects increased lending risk from the bank's perspective. Legal collection procedures are more complex for foreign borrowers, and banks cannot easily verify income sources or employment stability outside Portugal.
Non-residents should budget for the full 30% deposit plus closing costs (typically 8-10% additional), meaning total upfront costs often reach 40% of the property value.
Are there specific banks or lenders in Lisbon that offer lower deposit requirements?
All major Portuguese banks follow broadly similar deposit requirements, with limited variation between institutions.
The main Portuguese banks - Millennium BCP, Santander, Novo Banco, and Caixa Geral de DepĂłsitos - generally require 10-20% deposits for residents and 30% for non-residents. Competition between banks focuses more on interest rates and fees rather than deposit requirements.
Some banks may offer marginal improvements for specific client categories. Santander occasionally offers 20% deposit options for EU residents with exceptional financial profiles. Millennium BCP has specialized programs for returning Portuguese emigrants that may reduce deposit requirements.
Private banks and specialist mortgage brokers sometimes access alternative lending sources that may offer more flexible terms, but these typically come with higher interest rates that offset any deposit savings.
The most significant deposit reductions come through government programs rather than individual bank policies. Focus on qualifying for the State Guarantee Program if you meet age and residency criteria rather than shopping for minimal differences between commercial lenders.
Is it possible to negotiate the deposit amount with the seller or real estate agent in Lisbon?
Deposit amounts are generally non-negotiable as they're determined by mortgage lender requirements rather than seller preferences.
The deposit percentage is set by banks based on their risk assessment of the borrower, not by the property seller. Sellers receive the purchase price at completion regardless of how it's financed, so they have no incentive to accept lower deposits that could jeopardize mortgage approval.
Limited negotiation opportunities exist in specific market conditions. During property market downturns or when developers have excess inventory, some flexibility may emerge. New build developers occasionally offer deposit assistance or staged payment plans to facilitate sales.
The reservation fee (€5,000-€10,000) paid before CPCV signing may be negotiable, particularly for cash buyers or in competitive situations where multiple offers exist.
Rather than negotiating deposit amounts, focus on negotiating property price, completion timing, or inclusion of furnishings and fixtures. These negotiations provide more realistic opportunities for savings than attempting to change mortgage lending requirements.
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If I have a low credit score, will I need to provide a larger deposit when buying property in Lisbon?
Yes, buyers with poor credit scores typically face higher deposit requirements or may be denied mortgage approval entirely.
Portuguese banks assess credit risk through both domestic credit bureaus and international credit reporting agencies for foreign applicants. Poor credit history usually results in deposit requirements above standard levels - often 35-40% instead of the typical 30% for non-residents.
Banks may also impose additional conditions including higher interest rates, shorter loan terms, or requirements for Portuguese guarantors. Some lenders will simply decline applications from borrowers with significant credit issues rather than offering modified terms.
For residents with poor Portuguese credit history, options are extremely limited. The domestic banking system shares credit information efficiently, making it difficult to find alternative lenders willing to accept higher risk.
Improving your credit score before applying provides the best path to standard deposit requirements. For non-residents, establishing Portuguese tax residency and building local credit history can significantly improve lending terms over time.
How much will I need to set aside for closing costs and taxes on top of the deposit in Lisbon?
Closing costs and taxes typically add 8-10% of the property purchase price on top of your deposit requirement.
- IMT (Property Transfer Tax): Ranges from 2-8% depending on property value and buyer status. Most urban properties in Lisbon face rates around 6% of purchase price.
- Stamp Duty: Approximately 0.8% of the property value, paid to the Portuguese tax authorities.
- Notary and Registration Fees: €1,500-€3,000 for legal processing and property registration with Portuguese authorities.
- Legal Fees: 1-2% of purchase price for lawyer representation during the transaction process.
- Survey and Valuation Costs: €300-€800 required by mortgage lenders for property assessment.
First-time buyers under 35 with Portuguese tax residency can receive IMT and stamp duty exemptions through government programs, potentially saving €25,000-€35,000 on a €400,000 property.
It's something we develop in our Portugal property pack.
What documents do I need to prove I can afford the deposit when applying for a mortgage in Lisbon?
Portuguese banks require comprehensive documentation proving both income capacity and liquid funds available for the deposit.
- Bank Statements: 3-6 months of statements from accounts holding deposit funds, showing consistent balance history and fund origins.
- Income Documentation: Recent pay slips, employment contracts, and tax returns (Portuguese or foreign) demonstrating stable income sufficient for mortgage payments.
- Tax Returns: 2-3 years of tax filings from your country of residence showing declared income and tax compliance.
- Credit Reports: Both domestic (if Portuguese resident) and international credit bureau reports showing payment history and existing debt obligations.
- Asset Declarations: Documentation of other assets including property, investments, or business ownership that support overall financial stability.
Non-residents may need additional documentation including notarized translations, apostilled documents, and formal declarations regarding the source of deposit funds to comply with Portuguese anti-money laundering regulations.
Do I need to show proof of my income or savings to secure a mortgage with the required deposit in Lisbon?
Yes, Portuguese banks require detailed proof of both income stability and available savings before approving any mortgage application.
Income verification requirements include employment contracts, recent pay slips (typically 3-6 months), and tax returns covering 2-3 years. Self-employed applicants must provide additional documentation including business registration, profit and loss statements, and accountant-certified financial records.
Savings verification involves providing bank statements covering 3-6 months that clearly show the deposit amount has been available and stable. Banks scrutinize fund sources to ensure compliance with anti-money laundering regulations, particularly for large cash deposits or recent transfers.
Non-residents face enhanced scrutiny with requirements for translated documents, proof of foreign income sources, and sometimes formal declarations regarding fund origins. Some banks may require funds to be held in Portuguese bank accounts for a minimum period before mortgage approval.
The debt-to-income ratio must typically remain below 35-40% including the new mortgage payment. Banks calculate this based on proven net income after taxes and existing debt obligations.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding deposit requirements is crucial for successful property investment in Lisbon, but it's just one piece of the financial puzzle.
The Portuguese property market offers excellent opportunities for both residents and foreign investors, with government programs providing unprecedented support for young first-time buyers.
Sources
- Your Overseas Home - Portugal Property Guide
- Portugal Buyers Agent - Property Purchase Guide
- Tagus Property - Legal Process Guide
- Portugal Xpert - Mortgage Guide for Foreigners
- Idealista - Foreign Mortgage Guide
- Bleisured - Lisbon Property Guide 2025
- Portugalist - First-Time Buyer Programs
- Santander Portugal - Young Adult Mortgages