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Yes, the analysis of Lisbon's property market is included in our pack
Getting a mortgage in Lisbon as a non-resident is definitely possible, though banks will require larger down payments and charge higher interest rates than they would for Portuguese residents.
As of September 2025, major Portuguese banks including Novobanco, Eurobic, and Santander regularly approve mortgages for foreign buyers, with loan-to-value ratios typically ranging from 60% to 75% depending on your income profile and chosen bank.
If you want to go deeper, you can check our pack of documents related to the real estate market in Portugal, based on reliable facts and data, not opinions or rumors.
Non-residents can secure mortgages in Lisbon with down payments of 25-40% and slightly higher interest rates than residents pay.
The approval process typically takes 8-12 weeks and requires comprehensive income documentation including tax returns and bank statements.
| Mortgage Aspect | Non-Resident Terms | Resident Comparison |
|---|---|---|
| Maximum LTV Ratio | 60-75% (rarely 80%) | 80-90% |
| Down Payment Required | 25-40% | 10-20% |
| Interest Rate Premium | +0.25% to +1.0% | Base rates |
| Approval Timeline | 8-12 weeks | 6-10 weeks |
| Minimum Property Value | €70,000-€100,000 | No minimum |
| Documentation Required | Extensive + translations | Standard Portuguese docs |
| Rental Permission | Yes, with bank notification | Yes, with bank notification |
Can non-residents actually get a mortgage in Lisbon?
Yes, non-residents can definitely get a mortgage to buy property in Lisbon.
Portuguese law does not restrict foreign nationals from obtaining mortgages, regardless of their residency status. The key distinction banks make is between fiscal residents and non-residents, not citizenship.
Major Portuguese banks including Novobanco, Eurobic, Santander Totta, Millennium BCP, and Bankinter regularly approve mortgage applications from non-resident buyers. These banks have established procedures and dedicated teams to handle international clients.
However, non-residents face stricter lending conditions compared to Portuguese residents, including higher down payment requirements and slightly elevated interest rates to compensate for perceived higher risk.
The approval process is more complex and requires additional documentation, but thousands of foreign buyers successfully secure financing each year for Lisbon properties.
What are the minimum and maximum loan-to-value ratios available for non-residents?
Non-residents can typically secure loan-to-value ratios between 60% and 75% of the property's purchase price.
Most Portuguese banks cap LTV at 70% for non-resident buyers, though some institutions may go as high as 75% for applicants with strong financial profiles. In rare cases with exceptional circumstances, banks might approve up to 80% LTV.
The exact LTV ratio you'll qualify for depends on several factors including your income stability, debt-to-income ratio, the property type, and your relationship with the bank. Self-employed applicants typically receive lower LTV ratios than salaried employees.
Banks are generally more conservative with foreign income sources, as they're harder to verify and may fluctuate due to currency exchange rates.
It's worth noting that Portuguese residents can often secure LTV ratios of 80-90%, highlighting the more cautious approach banks take with non-resident applications.
How much of a down payment would I realistically need to make?
You should plan for a down payment of 25% to 40% of the property's purchase price as a non-resident buyer in Lisbon.
With the typical LTV range of 60-75%, your down payment will be the inverse of whatever loan percentage you secure. If you get a 70% LTV mortgage, you'll need to put down 30% upfront.
Most banks require a minimum 25% down payment from non-residents, even for the strongest applicants. However, many foreign buyers end up putting down 30-35% to improve their approval chances and secure better interest rates.
This down payment requirement is significantly higher than what Portuguese residents face, who often secure mortgages with just 10-20% down. The higher requirement reflects banks' risk assessment of lending to non-residents.
Remember that you'll also need additional funds for closing costs, taxes, and fees, which typically add another 8-12% to your total upfront investment.
Which Portuguese banks are open to working with non-resident buyers in Lisbon?
| Bank Name | Non-Resident Services | Special Features |
|---|---|---|
| Novobanco | Dedicated international desk | English-speaking staff, competitive rates |
| Eurobic | Specialized foreign buyer program | Fast processing, flexible documentation |
| Santander Totta | International mortgage division | Global banking network, multiple currencies |
| Millennium BCP | Non-resident mortgage packages | Comprehensive banking services |
| Bankinter | International client services | Premium banking, high-value properties |
| Caixa Geral de Depósitos | Foreign national programs | State-backed, conservative lending |
| International Banks | High net worth clients | Private banking, complex structures |
What income documentation do banks in Portugal usually require from foreigners?
Portuguese banks require comprehensive income documentation that must be officially translated and often apostilled.
1. **Valid passport or national ID card** - Your primary identification document 2. **Portuguese Tax ID (NIF)** - Mandatory for all property transactions, obtained from tax authorities or authorized representatives 3. **Recent payslips** - Last 3-6 months of salary statements showing consistent income 4. **Complete tax returns** - Previous year's full tax declaration from your home country 5. **Bank statements** - 3-6 months of statements from your primary accounts showing income deposits and spending patterns 6. **Proof of address** - Utility bill or official document from your country of residence 7. **Employment contract or company registration** - For self-employed individuals, business registration and financial statements are required 8. **Official translations** - All documents not in Portuguese must be professionally translated and often require Hague Apostille certificationSelf-employed applicants face additional scrutiny and may need to provide audited financial statements, business bank accounts, and proof of contract continuity. The documentation process typically takes 2-4 weeks to complete properly.
Are interest rates for non-resident mortgages higher than for residents, and by how much?
Yes, non-residents pay higher interest rates than Portuguese residents, typically an additional 0.25% to 1.0% above standard rates.
As of September 2025, fixed-rate mortgages for non-residents range from 3% to 4%, while variable rates typically consist of the Euribor rate plus a margin of 1-2%. Portuguese residents generally pay 0.25-1.0% less across all rate types.
The exact premium depends on your financial profile, chosen bank, and loan terms. Applicants with strong income documentation and substantial down payments may qualify for rates closer to resident levels, while those with complex income structures face higher premiums.
Variable rates are more common in Portugal's mortgage market, with many borrowers choosing Euribor-linked products that adjust quarterly or annually. Fixed rates are available but typically offered for shorter terms of 5-10 years before converting to variable.
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How long does the mortgage approval process typically take for a non-resident?
The complete mortgage approval process for non-residents typically takes 8-12 weeks from initial application to final approval and property closing.
The timeline breaks down into several phases: initial pre-approval (1-2 weeks), formal application submission (1 week), bank review and property valuation (3-4 weeks), final underwriting (2-3 weeks), and legal completion (1-2 weeks).
Non-resident applications take longer than resident applications due to additional documentation verification, international income assessment, and more thorough due diligence procedures. Banks need extra time to verify foreign income sources and may require additional documentation during the process.
You can accelerate the process by having all documentation properly translated and apostilled before starting, working with a local mortgage broker who understands bank requirements, and maintaining responsive communication throughout the review period.
Property valuations can add 1-2 weeks to the timeline, as banks require independent appraisals for all mortgage applications, regardless of the agreed purchase price.
What fees and taxes should I budget for when buying a property in Lisbon as a foreigner?
You should budget approximately 8-12% of the property purchase price for taxes, fees, and closing costs when buying in Lisbon as a foreigner.
| Fee/Tax Type | Rate/Amount | Notes |
|---|---|---|
| IMT (Municipal Transfer Tax) | 1-8% progressive | Based on property value and type |
| Stamp Duty | 0.8% of property price | Paid on property transfer |
| Bank Mortgage Fees | 1-2% of loan amount | Arrangement and processing fees |
| Property Valuation | €175-€500 | Required by all banks |
| Notary and Registration | €1,000-€2,500 | Legal completion costs |
| Legal Representation | €1,500-€3,000 | Recommended for foreign buyers |
| Translation Services | €500-€1,500 | Document translation and apostille |
Can I get a fixed-rate mortgage in Portugal, or are they mostly variable?
Both fixed-rate and variable-rate mortgages are available to non-residents in Portugal, though variable rates are more commonly used.
Fixed-rate mortgages can be secured for terms of 5, 10, or even 30 years, depending on the lender and your financial profile. However, many Portuguese borrowers prefer variable rates because they've historically been lower and offer more flexibility.
Variable rates in Portugal typically track the Euribor (Euro Interbank Offered Rate) plus a fixed margin set by your bank. The rate adjusts quarterly or annually based on Euribor movements, which can result in payment changes over time.
Fixed rates provide payment certainty but are usually priced 0.5-1.0% higher than variable rates at origination. Many borrowers opt for initial fixed periods (5-10 years) that then convert to variable rates.
Your choice between fixed and variable should depend on your risk tolerance, payment stability preferences, and market outlook for European interest rates.
Is there a minimum property value required to qualify for a mortgage in Lisbon?
Many Portuguese banks set minimum property values of €70,000 to €100,000 for mortgage eligibility, though this varies by institution.
These minimums reflect banks' desire to maintain loan sizes that justify the administrative costs of processing and managing mortgages. Very small loans may not be profitable for banks to underwrite and service.
Some banks may be more flexible with minimum values for strong applicants or existing customers, while others maintain strict thresholds regardless of borrower profile. The minimum can also vary based on property type and location within Lisbon.
International or private banks serving high-net-worth clients may have higher minimum property values, sometimes starting at €200,000 or more for their mortgage products.
It's worth checking with multiple banks if you're looking at properties near these threshold values, as requirements can differ significantly between institutions.
How does my country of residence or citizenship affect the approval chances?
Your country of residence and citizenship significantly impact your mortgage approval chances and terms offered by Portuguese banks.
Banks generally favor applicants from OECD countries with stable currencies and transparent financial systems. Residents of the US, UK, Germany, France, and other developed European nations typically receive the most favorable treatment and higher LTV ratios.
Citizens from countries with currency volatility, complex banking systems, or limited financial transparency may face stricter conditions, lower LTV ratios, or even outright rejection from some lenders. Banks assess the difficulty of verifying income and the stability of your earnings in your home currency.
EU citizens often receive preferential treatment due to regulatory frameworks that facilitate income verification and legal recourse. Some banks have specific programs designed for citizens of certain countries where they have strong correspondent relationships.
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We did some research and made this infographic to help you quickly compare rental yields of the major cities in Portugal versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
What happens if I want to rent out the property while holding a non-resident mortgage?
Non-resident mortgage holders can rent out their Lisbon properties, but must inform their bank and comply with local rental regulations.
If you originally applied for a primary residence mortgage but later decide to rent the property, you must notify your bank of this change. Some banks may adjust your interest rate or loan terms, while others simply require disclosure for their records.
Investment property mortgages are available from the start if you plan to rent immediately, though they typically come with slightly higher interest rates and may require larger down payments than primary residence loans.
You'll need to comply with Portuguese rental laws, register your rental income with tax authorities, and pay applicable taxes on rental earnings. Many foreign property owners hire local management companies to handle tenant relations and regulatory compliance.
Rental income can actually strengthen your mortgage application if you're purchasing an investment property, as banks may consider projected rental yields when assessing your ability to service the debt.
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.
Getting a mortgage as a non-resident in Lisbon is achievable with proper preparation and realistic expectations about terms and requirements.
While you'll face higher down payment requirements and interest rates than residents, numerous banks actively serve foreign buyers and thousands successfully secure financing each year for Lisbon properties.
It's something we develop in our Portugal property pack.
Sources
- Idealista - How to get a mortgage in Portugal as a foreigner
- Hola Pedro - Banks Portugal mortgage for foreigners
- Immigrant Invest - Best Portugal banks
- Pearls of Portugal - Mortgage Portugal foreigner
- Vendici Properties - Mortgages in Portugal for non-residents
- Global Citizen Solutions - Mortgages for foreigners Portugal
- Wise - Mortgages in Portugal
- Idealista - Portuguese mortgages for non-residents
- Traverse International Finance - Portuguese mortgages guide
- Traverse International Finance - Portugal mortgage factsheet