Mortgages for Non-Residents
Preparing financing as a non-resident buyer.
Overview
Preparing financing as a non-resident buyer.
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Can non-residents obtain a Portuguese mortgage?
Yes. Portuguese banks lend to non-resident buyers, typically at a lower loan-to-value than for residents, and always subject to their own credit assessment, valuation of the property and affordability rules. Buyers should treat financing as a parallel track that runs alongside the legal process, and should ensure any promissory contract reflects the reality of the lending timetable.
Key points
- Non-residents can borrow, usually at a lower loan-to-value than residents.
- Terms vary widely between banks — compare the total cost of credit.
- Budget for valuation, insurance, stamp duty on credit and registration of the charge.
- Align the promissory contract with the realistic lending timetable before signing.
How lending to non-residents works
A Portuguese mortgage is secured by a charge over the property, registered at the Land Registry at the same time as the purchase. The bank assesses the borrower and the property separately: an approval in principle based on income does not guarantee the amount available once the valuation is completed.
Lending decisions depend on the bank's own policy, and terms differ noticeably between institutions on the maximum loan-to-value offered to non-residents, the maximum age at the end of the term, accepted income currencies and the treatment of income earned outside the European Union.
Preparing your application
Banks will normally review your identity, tax position, income and existing debt commitments. Documents issued abroad may need to be translated and, depending on the country of issue, legalised or apostilled.
Typically requested
- Identity and tax — Passport or identity card, Portuguese NIF and proof of address.
- Income — Employment contract and payslips, or accounts and tax returns for the self-employed.
- Banking — Recent statements for personal and, where relevant, business accounts.
- Commitments — Details of existing loans, mortgages and other regular obligations.
- Property — Details of the property being purchased so the bank can instruct a valuation.
Costs associated with financing
Financing adds costs beyond the purchase itself. These commonly include an arrangement or dossier fee, the property valuation, life and buildings insurance required by the lender, stamp duty on the credit facility and on the mortgage security, and registration fees for the charge.
Interest may be offered on a variable basis linked to Euribor plus a spread, or on a fixed or mixed basis. Compare the total cost of credit rather than the headline spread alone, and check whether preferential pricing depends on holding other products with the bank.
Good to know
The purchase cost calculator on this site estimates acquisition taxes and typical transaction costs. Lender-specific charges should be confirmed with the bank in writing.
Timing and the promissory contract
Mortgage approval, valuation and the issue of final offer documents take time, and that time is rarely within the buyer's control. Where a promissory purchase agreement is signed before financing is confirmed, the deposit is at risk if the loan is not granted and the contract makes no provision for it.
Discuss with your lawyer whether a financing condition, a longer completion window or a staged deposit is appropriate. This should be agreed before the promissory contract is signed, not afterwards.
Where this fits in the buying process
This guide expands on the "Prepare to buy" stage of the full buying process. Read it alongside the complete step-by-step guide to see what comes before and after.
Next steps
This guide provides general information about buying property in Portugal and does not replace legal advice on a specific transaction.