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Everything you need to know before buying real estate is included in our Portugal Property Pack
Non-residents can access mortgages in Portugal, but the process requires meeting stricter criteria than local buyers face.
Portuguese banks typically offer 60-75% loan-to-value ratios to foreign buyers, with higher interest rates and more extensive documentation requirements. As of September 2025, the mortgage market remains accessible to non-residents, though approval timelines can extend to 12 weeks and deposit requirements are substantially higher than for residents.
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-resident buyers can secure mortgages in Portugal but face stricter lending criteria, including higher deposit requirements of 25-40% and slightly elevated interest rates.
The approval process typically takes 8-12 weeks and requires extensive documentation from the buyer's home country, including income verification and credit reports.
| Mortgage Feature | Non-Resident Requirements | Resident Comparison |
|---|---|---|
| Loan-to-Value Ratio | 60-75% maximum | Up to 90% |
| Required Deposit | 25-40% of property value | 10-20% |
| Interest Rates (Sept 2025) | 3.5-4.2% | 3.0-4.0% |
| Income Verification | Home country documents required | Local documents only |
| Approval Timeline | 8-12 weeks | 4-8 weeks |
| Debt-to-Income Limit | 30-35% of net income | Similar requirements |
| Bank Account Requirement | Portuguese account mandatory | Already established |
Fact-checked and reviewed by our local expert
João Morais 🇵🇹
Founder | Real Estate Advisor, at Wilderness Investments
What types of mortgages are actually available to non-residents in Portugal?
Non-residents in Portugal can access three main mortgage types from Portuguese banks as of September 2025.
Fixed-rate mortgages offer predictable monthly payments with interest rates locked for the entire loan term, typically ranging from 3.5% to 4.2% for non-residents. Variable-rate mortgages link your interest rate to the Euribor benchmark plus a bank margin, meaning your payments will fluctuate with market conditions. Mixed-rate mortgages combine both approaches, starting with a fixed rate for an initial period before switching to variable rates.
Portuguese banks also offer construction mortgages for buyers purchasing off-plan properties or planning major renovations, though these typically come with lower loan-to-value ratios. Commercial property mortgages are available but require specialized application processes and stricter criteria. Most major Portuguese banks including Novobanco, BPI, and Eurobic maintain dedicated non-resident mortgage products with English-speaking support teams.
The application process requires opening a Portuguese bank account and obtaining a NIF (tax identification number) before proceeding with any mortgage type.
It's something we develop in our Portugal property pack.
What percentage of the property value will Portuguese banks typically lend to non-residents?
Portuguese banks typically lend between 60% and 75% of the property value to non-resident buyers as of September 2025.
Most mainstream banks cap their loan-to-value ratio at 70% for foreign buyers, though some conservative institutions may limit this to 60% depending on your financial profile and the specific property. Premium banks occasionally extend up to 75% for well-qualified borrowers with strong income documentation and significant liquid assets.
The property's location, condition, and marketability significantly influence the final LTV ratio banks will approve. Properties in prime locations like central Lisbon, Porto, or established Algarve resorts typically qualify for higher LTV ratios compared to rural or less liquid markets. Banks also consider the property's age, with newer constructions generally receiving more favorable financing terms.
Your debt-to-income ratio, employment stability, and existing financial commitments directly impact the final lending percentage banks will offer.
This contrasts sharply with resident buyers who can access up to 90% financing under current Portuguese banking regulations.
What are the usual interest rates for non-resident mortgages compared to resident ones?
Non-resident mortgage interest rates in Portugal currently range from 3.5% to 4.2% as of September 2025, approximately 0.3% to 0.5% higher than rates offered to Portuguese residents.
Variable-rate mortgages for non-residents typically price at Euribor plus a margin of 1.8% to 2.5%, while residents can access margins as low as 1.2% to 2.0%. Fixed-rate products show similar spreads, with non-residents facing premiums that reflect perceived higher risk from lenders' perspectives.
The specific rate you'll receive depends heavily on your financial profile, with banks offering their best terms to borrowers demonstrating stable employment, substantial liquid assets, and clean credit histories. Self-employed applicants typically face additional rate premiums compared to salaried employees. Banks also consider the loan amount, with larger mortgages sometimes qualifying for slightly better rates due to economies of scale.
Recent market conditions have seen rates stabilizing after earlier volatility, though non-residents should expect to pay meaningfully more than domestic buyers throughout the loan term.
What minimum income or savings do banks usually require to approve a non-resident mortgage?
Portuguese banks require that your total debt payments, including the proposed mortgage, do not exceed 30% to 35% of your net monthly income for non-resident applications.
For a €300,000 mortgage with typical terms, banks expect minimum net monthly income of approximately €2,500 to €3,000, though specific requirements vary by institution and your existing debt obligations. Self-employed applicants need to demonstrate at least two years of stable income through audited accounts and tax returns. Pensioners must provide official pension documentation showing guaranteed monthly payments sufficient to cover mortgage obligations.
Banks also require liquid savings beyond your deposit to cover approximately six months of mortgage payments plus all purchase-related costs. This typically means having 40% to 50% of the property value in readily accessible funds. Some institutions require evidence of additional assets or investments as security buffers.
Employment stability carries significant weight, with banks preferring borrowers in permanent positions or with established business track records spanning multiple years.
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How much deposit do I realistically need to put down as a non-resident buyer?
Non-resident buyers should realistically budget for a deposit of 25% to 40% of the property purchase price in Portugal.
Most successful non-resident mortgage applications involve deposits of at least 30% of the property value, with many banks preferring 35% as their comfort zone for approval. Conservative lenders may require up to 40% depending on your income source, employment type, and the specific property characteristics.
Beyond the basic deposit, you'll need additional liquid funds to cover purchase costs including IMT transfer tax, stamp duty at 0.8%, notary fees of €500 to €1,200, and legal expenses. These additional costs typically add another 8% to 10% of the property value to your upfront cash requirements.
Banks also want to see evidence of reserves equivalent to several months of mortgage payments remaining in your accounts after completion, meaning your total liquid assets should exceed 50% of the property purchase price.
Do banks in Portugal require proof of income from my home country, and if so, what documents do they ask for?
Portuguese banks require comprehensive income documentation from your home country for all non-resident mortgage applications.
| Document Type | Required Format | Validity Period |
|---|---|---|
| Employment Contract | Certified translation to Portuguese | Current contract |
| Last 3 Payslips | Official company format with translations | Most recent 3 months |
| Annual Tax Return | Official government copy with apostille | Last 2 years |
| Bank Statements | Official bank letterhead statements | Last 6 months |
| Credit Report | Official credit bureau report | Issued within 30 days |
| Pension Documentation | Official pension provider statement | Current year |
| Self-Employment Records | Audited accounts and tax filings | Last 2-3 years |
All foreign documents require certified translations into Portuguese and may need apostille certification depending on your country of origin. Banks typically allow 30 to 60 days for document collection, though complex self-employment situations may require additional time for verification.
How long does the mortgage approval process usually take for non-residents?
The complete mortgage approval process for non-residents in Portugal typically takes 8 to 12 weeks from initial application to final approval as of September 2025.
Pre-approval based on initial documentation usually completes within 1 to 2 weeks, giving you a preliminary lending decision and budget framework. The formal application stage, including property valuation and detailed underwriting, requires an additional 4 to 6 weeks once all documentation is submitted. Final approval and mortgage deed preparation add another 2 to 4 weeks to the timeline.
Document translation, apostille certification, and verification of foreign income sources often create the longest delays in the process. Self-employed applicants should expect additional weeks for business income verification. Banks may request supplementary documentation during underwriting, potentially extending timelines by several weeks.
Working with mortgage brokers familiar with non-resident applications can help streamline the process and avoid common documentation delays that frequently extend approval timelines.
Are there restrictions on the type of property I can buy with a mortgage as a non-resident?
Portuguese banks generally approve mortgages for standard residential properties purchased by non-residents, including apartments, townhouses, and detached homes in urban and suburban areas.
Most lenders readily finance properties in established locations like Lisbon, Porto, Cascais, and popular Algarve towns where market liquidity remains strong. Holiday homes and investment properties qualify for standard mortgage terms, provided they meet basic habitability and legal requirements. New construction and off-plan developments are typically eligible, though banks may require additional guarantees from developers.
Banks commonly restrict financing for rural properties, very old buildings requiring extensive renovation, properties without proper utilities access, and assets in areas with limited resale markets. Some institutions avoid financing properties under 50 square meters or those located in buildings without elevators above certain floors.
Commercial properties, mixed-use buildings, and properties intended for short-term rental businesses may require specialized commercial mortgage products with different terms and stricter qualification criteria.
It's something we develop in our Portugal property pack.
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 additional taxes, notary fees, and legal costs should I budget for as a non-resident purchaser?
Non-resident buyers should budget approximately 8% to 10% of the property purchase price for taxes, fees, and legal costs when buying property in Portugal.
| Cost Category | Amount/Rate | Notes |
|---|---|---|
| IMT Transfer Tax | Variable (0-8% based on value) | Higher rates for expensive properties |
| Stamp Duty | 0.8% of property value | Standard rate for all buyers |
| Notary Fees | €500 - €1,200 | Depends on property value |
| Property Registration | €250 - €750 | Official registration costs |
| Legal Fees | €1,000 - €2,000 | Lawyer representation |
| Translation/Apostille | €200 - €400 | Document certification |
| Property Valuation | €300 - €600 | Required by mortgage lender |
IMT transfer tax represents the largest variable cost, with rates increasing progressively based on property value and intended use. Properties over €550,000 face substantially higher IMT rates, while first-time buyers may qualify for reductions on lower-value properties.
Legal representation is highly recommended for non-residents to navigate Portuguese property law, contract terms, and ensure proper due diligence on property titles and encumbrances.
Which Portuguese banks are known to work most easily with non-resident clients?
Several Portuguese banks have established specialized non-resident mortgage divisions with English-speaking teams and streamlined application processes.
- Novobanco - Offers dedicated international banking services with competitive rates for non-residents and simplified documentation processes
- BPI (Grupo CaixaBank) - Provides comprehensive non-resident packages including mortgage pre-approval and account opening assistance
- Eurobic - Known for flexible approach to non-resident applications and willingness to work with various income sources
- Santander Portugal - Offers international mortgage products with support in multiple languages
- Millennium BCP - Provides specialized teams for foreign buyer mortgages with competitive terms
Working with experienced mortgage brokers who maintain relationships with multiple Portuguese banks can significantly improve your chances of approval and help secure better terms. These brokers understand each bank's specific criteria and can match your profile with the most suitable lenders.
Some banks require in-person meetings in Portugal during the application process, while others allow remote processing for qualified applicants with proper documentation.
Do I need to open a Portuguese bank account before applying for a mortgage, and what does that involve?
Opening a Portuguese bank account is mandatory before completing any mortgage application as a non-resident buyer.
The account opening process requires a NIF (Número de Identificação Fiscal), valid passport, proof of address from your home country, and evidence of income or employment. Many banks allow non-residents to begin the account opening process remotely or through legal representatives, though final activation typically requires an in-person visit or video verification.
Most Portuguese banks offer non-resident account packages that include mortgage services, international transfers, and multi-currency capabilities. Account opening typically takes 1 to 3 weeks once all documentation is submitted and verified. Some banks require minimum initial deposits ranging from €500 to €2,000 for non-resident accounts.
Your Portuguese bank account will handle all mortgage-related transactions including monthly payments, property-related taxes, and insurance premiums. Banks often require automatic direct debit setup for mortgage payments as a condition of approval.
It's something we develop in our Portugal property pack.
If I sell the property later, are there specific capital gains tax rules that apply differently to non-residents?
Portugal applies specific capital gains tax rules to non-residents that differ significantly from resident taxation as of September 2025.
Non-residents pay capital gains tax on 50% of their profits at Portugal's progressive tax rates, which can reach up to 48% on the taxable portion. This means your effective maximum capital gains tax rate could reach approximately 24% of total gains. Portuguese residents face the same 50% inclusion rule but may qualify for additional exemptions and rollover provisions not available to non-residents.
The calculation period affects your tax liability, with properties held longer than 24 months potentially qualifying for inflation adjustments that reduce taxable gains. Non-residents cannot claim the primary residence exemption that allows Portuguese residents to defer capital gains when reinvesting in another Portuguese property.
Double taxation treaties between Portugal and your home country may provide relief or credits against taxes owed in your country of residence. Professional tax advice is essential to understand your specific obligations and optimize your tax strategy when selling Portuguese real estate as a non-resident.
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.
Non-resident mortgages in Portugal remain accessible in 2025, though they require careful preparation and realistic expectations about terms and timelines.
Success depends on thorough documentation, adequate financial resources, and working with experienced professionals who understand both Portuguese banking requirements and international buyer needs.
Sources
- Idealista - How to Get a Mortgage in Portugal as a Foreigner
- Wise - Mortgages in Portugal Guide
- Traverse International Finance - Portugal Mortgage Guide
- Algarve Properties - Mortgage Rates Guide 2025
- Prime Properties Madeira - Mortgage Basics
- UCI - Mortgages in Portugal
- Global Citizen Solutions - Mortgages for Foreigners
- Hola Pedro - Mortgage Interest Rates Portugal
- Portugal Property - Mortgage Document Checklist
- MCS Tax Advisors - Capital Gains Tax for Non-Residents