Can a Non-Resident Get a Mortgage in Portugal?

Yes, a non-resident can usually get a mortgage in Portugal. Portuguese banks do lend to people living abroad, but they usually apply a more conservative loan-to-value ratio and assess income, currency risk, age, debts and the property. Approval depends on the bank and the applicant’s complete profile.

How much can a non-resident borrow in Portugal?

Non-residents typically finance around 60–70% of the purchase price or the bank’s valuation. The buyer usually needs a 30–40% deposit plus taxes and other purchase costs. A bank may offer less after reviewing income, debts, nationality, tax residence, property and deposit source.

Residents buying a home for their own permanent residence may have access to financing of up to 90%, within the reference rules of the Bank of Portugal. A non-resident buying a holiday home, investment property or second home should plan for a larger contribution.

What do Portuguese banks check?

The bank checks whether the monthly payment is affordable and supported by verifiable documents. Typical criteria include:

• Income: salary, pension or business income, its stability and history.
• Existing commitments: mortgages, loans, credit cards and other regular outgoings.
• Age and term: the maximum term is around 40 years, subject to the bank’s policy and the borrower’s age at the end.
• Deposit and funds: evidence of the deposit and purchase-cost source.
• Property: valuation, legal documents, location and suitability as security.

Foreign-currency income can be accepted, but the lender may apply affordability assumptions for exchange-rate movements. Do not base the budget on the most favourable conversion rate.

What costs should a non-resident budget for?

Stamp Duty is typically 0.8% on the purchase and 0.6% on the mortgage amount. IMT, the Portuguese property transfer tax, depends on the price and type of property; use the official simulator on the Portal das Finanças.

Also allow for valuation, deed, registration, legal, insurance and bank-related costs. Amounts vary by transaction and lender, so prepare a full budget before signing. A pre-assessment indicates a realistic price range, but it is not final approval.

Which documents are usually required?

Each bank has its own checklist, but a non-resident applicant will commonly provide:

• passport or national identity document;
• Portuguese NIF, the tax identification number;
• proof of address and tax residence;
• payslips, employer confirmation, tax returns or business accounts;
• bank statements and existing credit commitments;
• evidence of the deposit’s source; and
• property documents after selecting a home.

Foreign documents may need certified copies, certified translation and an apostille or other legalisation, depending on the document and bank. First obtain the lender’s list, because requirements differ by country and application.

What changes for Americans, Britons and Brazilians?

Americans

US applicants commonly show income and financial records in US dollars. The bank assesses exchange-rate exposure and may request certified translations and apostilles or equivalent legalisation for US documents. A Portuguese NIF and Portuguese bank account are normally required, even when the applicant remains tax-resident in the US.

Britons

UK applicants commonly earn in pounds sterling. English documents may sometimes be accepted directly, but the bank can request certified translation or legalisation for particular records. A Portuguese NIF and Portuguese bank account are also normally needed; neither makes the applicant resident in Portugal.

Brazilians

Brazilian applicants commonly earn in reais. As documents are usually in Portuguese, translation may be unnecessary when originals are accepted, although certified copies or apostilles can still be requested. A Portuguese NIF and Portuguese bank account are normally needed for the mortgage and related payments.

Can the application be handled from abroad?

Much of the initial process can be organised remotely through document review, affordability assessment, bank comparison and video calls. The lender must still complete identity, anti-money-laundering and credit checks. Signing may require a visit to Portugal or an authorised representative under power of attorney.

Starting before making an offer gives the buyer time to obtain a NIF, open a Portuguese account when required, prepare formal documents and understand the likely borrowing range. It also reduces the risk of choosing a property that fails the bank’s valuation or lending policy.

How can a non-resident improve the chances of approval?

• Request a pre-assessment before committing to a property.
• Keep income records, bank statements and tax documents consistent.
• Explain foreign income, currency and debts clearly.
• Document the deposit and its source.
• Allow time for translations, apostilles and compliance checks.
• Compare several banks because criteria for foreign income vary.

A mortgage broker can coordinate documentation and compare partner banks. In Portugal, intermediation is normally free for the client because the bank pays the broker; any different fee should be explained in writing beforehand. Read more about why mortgage broker services are normally free of charge in Portugal.

Talk to a mortgage broker in Portugal

If you plan to buy in Portugal from abroad, Rafael Fonseca can review your situation and compare mortgage options in a free video call. Contact him on WhatsApp at +351 965 406 326 or use the contact form on the website.

Mortgage approval is subject to each bank’s assessment and criteria. Rafael Fonseca is a credit intermediary registered with Banco de Portugal under no. 4525.

Complete guide: Mortgage in Portugal for non-residents and Americans — key numbers, documents and the step-by-step process.