What is the minimum deposit for a foreigner buying in Portugal?

Typically 30–40% of the purchase price, compared to 10–20% for Portuguese residents. Some banks may offer up to 75–80% LTV for strong financial profiles.

What mortgage rates can I expect as a non-resident in Portugal?

Variable rates are broadly in the 3.0–4.0% range (Euribor plus bank spread), while fixed rates typically range from 3.5–4.5%. Non-residents often pay 0.2–0.5 percentage points more than residents.

How long does the mortgage approval process take in Portugal?

For non-residents, plan for six to twelve weeks from initial application to completion, depending on the complexity of your income and the bank's workload. Non-EU buyers may experience longer timelines.

Do I need a Portuguese bank account to get a mortgage?

Not strictly required, but strongly recommended. Most banks prefer that monthly repayments are serviced from a Portuguese account they hold, and it simplifies the overall process.

What acquisition costs should I budget for beyond the deposit?

Budget an additional 8–10% of the purchase price for IMT (property transfer tax), stamp duty (0.8%), legal and notary fees, and mortgage registration costs.

Portugal Mortgage Guide: What Foreign Buyers Need to Know

Q: Can I get a mortgage in Portugal if I don't live there?

Yes. Most major Portuguese banks offer mortgage products specifically for non-resident foreign buyers. The key requirements are a NIF (Portuguese tax number), documented foreign income, and a larger deposit than residents are required to provide.

Buying property in Portugal as a foreigner is easy and increasingly common. The mortgage process for foreigners has its own rules and a different timeframe to the ones that apply to local property buyers. In this article we’ll talk about who lends to foreigners, how much they’ll lend you for, what the interest rates are doing and most importantly – how much will you be approved to borrow.

Can Foreigners Get a Mortgage in Portugal?

Yes, there are several major Portuguese banks that would be equally happy to have your money that any resident Portuguese citizen. No residency or citizenship requirements, just proof of income, good credit rating and a larger deposit than a local might put down.

Some Banks offer mortgages to non-resident buyers, including Millennium BCP, Santander Portugal, Novobanco, BPI (CaixaBank Portugal) Banco CTT and Bankinter. UCI (Unión de Créditos Inmobiliarios) is a specialist in this field offering financial solutions to non-resident and foreign buyers.

How Much Can You Borrow? (LTV for Non-Residents)

One of the major differences between the terms and conditions offered to resident borrowers and those offered to non-resident borrowers in Portugal is the Loan-to-Value (LTV) ratio.

Residents: LTV up to 80-90%. Therefore the deposit/buyer contribution would be up to 10-20%.

Non-residents: The standard LTV for the range of options available would be in the region of 60-70% which means that the deposit required for purchase would be in the region of 30-40%. Some banks may be able to lend up to 75-80% LTV, in cases where the customer presents a strong profile and chooses to transfer assets under management to the bank in question.

BPI will lend up to 80% LTV on primary residences and up to 70% on holiday homes for non-residents, provided the applicant has a suitable financial profile.

Example: For a €400,000 apartment in Lisbon, one would be looking to invest around €120,000 to €160,000 in the deposit, plus say an additional 8-10% of the purchase price for various other costs associated with the acquisition.

What Are the Mortgage Rates Right Now?

Rates have fallen below 2023–2024 highs and are following the European Central Bank’s cycle of rate cuts.

Variable: Variable mortgages in Portugal are Euribor based (either 3 month or 12 month Euribor) plus a fixed spread of the bank. It is not uncommon for non residents to pay something in the region of 0.7% to 1.5% over Euribor, thus based on current levels of 12 month Euribor (circa 2.30–2.50%) this would place the total variable mortgage rate in the region of 3.0% to 4.0% dependant on profile.

fixed rates for 10 to 25 year duration do attract a premium in terms of interest rates however they are still offered in the 3.5– 4.5% range. For non residents there is an added premium of 0.2-0.5%. BPI is currently advertising a fixed rate offer for non residents for an April 2026 duration at 4.1%.

Bottom line: Portuguese mortgage pricing is competitively set in comparison to other Western European markets, with it being the case that lending rates are far less significant than loan deposit requirements.

Qualification Requirements

Portuguese banks look at several factors:

NIF (Portuguese Tax Number)

The first requirement is essential and the foremost on our checklist. You need to have a NIF in place before you can even apply for a mortgage. Applying for a NIF number is a simple process and can be done at any local Portuguese tax office (in Portugal) or through a lawyer who has power of attorney if you are abroad.

Income Documentation

In the banking world, applicants with stable, verifiable income are welcomed with open arms. Typically, salaried employees will need to provide banks with copies of their payslips for the last 3-6 months, as well as their current employment contract and tax clearance certificate / recent tax return. Self-employed buyers and business owners are generally viewed more favourably and will need to provide audited accounts for at least 2 years. Banks can usually accommodate more complex income structures (i.e. income in multiple currencies, consulting fees, dividend income etc.) but a lot more information will be required to support such applications.

Foreign income is also accepted. The income does not have to be earned solely in Portugal.

Debt-to-Income Ratio

As a general rule, your total monthly debt should not exceed 30–35% of your verified net monthly income. However, some banks will go up to 40% under certain circumstances. We use verified information to calculate your debt load for your new mortgage.

Credit History

Note that your credit score from back home won’t automatically travel with you; instead, banks and lenders here will offer to pull your credit reports from the domestic Experian, Equifax, or TALX, then review those reports for similar factors such as a history of on-time payments, recent bankruptcies or serious delinquencies, and how much debt you currently carry in relation to your available credit.

Bank Account

Having a Portuguese bank account is highly recommended and actually makes the loan process a lot easier as most banks require repayments to be deducted from an account that they hold.

The True Cost: Beyond the Deposit

You should also factor in acquisition costs, bringing the total to 8–10% of the purchase price.

IMT (Property Transfer Tax) This tax is based on the value of the property and is tiered based on the purchase price and whether the property is residential or investment. Properties classified as urban residential which fall under a certain price threshold may be exempt from this tax or receive reduced rates.
Stamp Duty: A fixed 0.8% of the price paid for the property.
Notary, registration and other legal costs: This typically costs between €1,500 and €3,000 plus more if the purchase is particularly complex.
Mortgage deed stamp duty: Additional charge of 0.6% on the amount of the mortgage.

These costs are typically paid at closing, and are not financed with your mortgage.

How Long Does Mortgage Approval Take?

For non-residents the process usually takes 6–12 weeks from application to approval (in some cases longer for non-EU buyers and/or complex income profiles).

The stages:

1. Pre-approval / indicative offer: Two to four weeks. During this period the bank reviews the documents provided and advises on a non-binding indicative offer.

2. Valuation of Property: Bank will order independent appraisal of the property within a week after signing promissory contract.

3. 3 to 5 Week Final Credit Committee Approval.

4. Signing and completion (escritura): Coordinate buyer and seller to sign and complete the property transfer with the notary.

It's highly recommended to get pre-approved for a loan before looking for a property. Getting pre-approved means you will know how much you have to spend, and the sellers will know you're serious.

Planning a Studio Build on a Budget? Look into Variables.

Variable suited to: People who are willing and able to take on some risk with variable payments. People who think they will either be selling their property or refinancing their loan within a timeframe of 5 to 7 years. People who expect interest rates to continue to fall as set out by the ECB.

Choose fixed if: You want certainty of repayments, you are purchasing the property as a long term investment or family home, or you are borrowing a large amount and want to limit potential losses. Many of our international clients choose fixed rates because they are not always on hand to manage variable rate transactions.

Practical Tips for Non-Resident Buyers

Use a mortgage broker. The Portuguese mortgage market has its own rules and processes and a broker with experience in the market is able to identify which banks are most likely to accept you based on your individual circumstances (nationality, income type and property type etc). In addition, a good broker can pre-approve you for a mortgage before submitting your application to the banks, so you can see whether you will be accepted before risking having multiple applications rejected and affecting your credit score.

Sort your NIF as soon as possible. You will need your NIF to apply for a wide variety of services in Portugal including opening bank accounts and purchasing property as well as applying for a mortgage. Therefore it is advisable to apply for a NIF as soon as you know you are going to move to Portugal.

Translation and Authentification of Documents. All foreign documents, such as tax returns, payslips and bank statements, need to be translated into Portuguese version and authenticated with an apostille, unless stated otherwise.

Start the mortgage process before you find the property. Most home buyers get pre-approved for a mortgage after they find a house. Don’t do this. Getting pre-approved for a mortgage before you start looking for a house gives you an upper hand in negotiations over other potential buyers.

Currency risk: the impact of movements in exchange rates on repayments (i.e. interest charged) in euros of a mortgage denominated in a currency other than the euro, and different from that on which income is earned. Some borrowers take out forward contracts or earn rental income in euros.

How Lisbonos Can Help

We have contacts with potential buyers from all parts of the world and a strong network of existing buyers across Portugal, from Lisbon, Porto and the Algarve down to the Silver Coast. Our clients also have access to expert mortgage brokers, lawyers and tax advisors who are well versed in providing advice and facilitating mortgages for international buyers.

Whether you are looking for a family home, an holiday retreat or rental property our team can help work out what is possible in terms of cost, and feasibility for your budget and financial circumstances before you fall in love with a place.

Let us help you explore your options. Contact us while we can discuss your buying requirements in more detail.

FAQ

Can I get a mortgage in Portugal if I don't live there?

A mortgage product for non-resident foreign buyers is offered by most major Portuguese banks. In general, the same criteria are required as for residents but these typically include having obtained a NIF, proof of foreign income and generally a larger deposit than would be required by a resident.

ANSWER: The minimum amount to be placed in a deposit account in Portugal for foreign residents is 10 Euro.

Unlike in Portugal where loans on properties amount to around 10-20% of the purchase price for resident applicants, for non-resident borrowers loans on properties here can amount to 30-40% of the purchase price. There are also reports that some of the banks here will provide up to 75-80% loan to value for very good profiles.

What mortgage rates can I expect as a non-Resident Buyer?

Variable rates are ranging 3.0–4.0% (Euribor + spread), while fixed rates are ranging 3.5–4.5%. The rates for non-residents are 0.2–0.5% higher than the rates for residents.

How long does the mortgage approval process take?

For non-residents, processing times can be anywhere between 6-12 weeks from the date of application depending on a number of factors, including the type and complexity of the income and the current pipeline at the bank.

Do I need a Portuguese bank account?

No é necessário, mas é altamente recomendado. Muitas das instituições financeiras preferem que as dívidas mensais sejam actualizadas através da conta Portuguesa que mantenham.

What acquisition costs should I budget for?

In addition to your deposit you should also factor in the cost of IMT (property transfer tax) and other expenses such as stamp duty, legal fees, notary fees and mortgage registration fees. In total these costs come to around 8-10% of the purchase price of the property.