How Much Deposit Do Foreigners Need to Buy in Portugal?

Most foreign buyers who are not resident in Portugal should typically plan for a deposit of around 30% to 40% of the property value, because Portuguese banks often finance approximately 60% to 70% for non-residents. The deposit is only part of the cash required: buyers must also budget for taxes, bank costs and the legal and registration expenses connected with the purchase.

How much deposit do non-residents need in Portugal?

For a non-resident mortgage applicant, financing commonly reaches around 60% to 70% of the property value, depending on the bank and the applicant’s financial profile. This means that the buyer usually contributes the remaining 30% to 40% from their own funds.

These figures are general indications, not a promise of approval. The final loan-to-value depends on factors such as income, employment, existing debts, age, nationality, country of residence, currency and the type of property being purchased.

• Typical financing: around 60% to 70% for many non-resident applications.
• Typical deposit: around 30% to 40% of the relevant property value.
• Possible variation: the bank may offer a different percentage after assessing the complete application.

Does the bank calculate the deposit from the purchase price?

The bank normally considers both the agreed purchase price and its own valuation of the property. In many cases, the loan-to-value calculation is based on the lower of these two figures.

If the bank’s valuation is lower than the agreed price, the buyer may need to provide additional funds to cover the difference. This is why arranging a mortgage assessment and understanding the likely valuation before signing binding documents can be important.

What other costs should foreigners budget for?

The deposit is not the same as the total amount needed to complete the purchase. Taxes and transaction costs are generally paid separately and should be available in addition to the buyer’s contribution.

• IMT: Portugal’s property transfer tax depends on the property value, location, use and type of purchase. The official IMT simulator on the Portal das Finanças should be used for an up-to-date estimate.
• Stamp Duty on the purchase: 0.8% of the purchase value.
• Stamp Duty on the mortgage: 0.6% of the amount borrowed.
• Professional and transaction costs: these may include valuation, banking, legal, notarial and property registration costs, depending on the transaction.
• Insurance and ongoing expenses: a mortgage may require property insurance and, in some cases, life insurance.

The exact total varies from one purchase to another. A realistic budget should therefore include the deposit, taxes, transaction costs and a reserve for unexpected expenses.

Can residents borrow more than non-residents?

Usually, yes. For residents buying their own permanent home, the Banco de Portugal framework allows financing of up to 90% of the property value, subject to the bank’s assessment and lending criteria. This can mean a deposit of around 10% in suitable cases.

However, the maximum permitted financing is not an automatic entitlement. The bank must still assess affordability, income stability, credit commitments, age and the property itself. A resident may therefore receive an offer below the maximum percentage.

What do Portuguese banks assess?

Banks look at the complete financial picture rather than the deposit alone. They normally review:

• employment, business income and overall financial stability;
• existing loans, credit cards and monthly commitments;
• income currency and the country where the applicant lives;
• age and the requested mortgage term;
• the property valuation, legal status and intended use;
• proof of identity, tax residence, income and the source of the deposit.

The maximum mortgage term now often reaches around 40 years, but the applicant’s age can reduce the available term. A shorter term may increase the monthly payment, while a longer term may increase the total interest paid.

How should you prepare your deposit?

Start by calculating the total purchase budget rather than focusing only on the property price. Keep enough accessible funds for the deposit, IMT, Stamp Duty and other costs. Banks will also normally request evidence showing where the money came from, so keep relevant bank statements, savings records and documents for any transfer or gift.

It is sensible to request an initial mortgage assessment before making an offer or committing to a non-refundable deposit. This does not guarantee approval, but it can clarify the likely financing range and identify documents that need to be prepared.

Is a mortgage broker free for the buyer?

Mortgage intermediation in Portugal is normally free for the client because the broker is paid by the partner bank. If any different charge applies, it should be explained clearly before the service is provided. You can read more about how mortgage broker services work in Portugal.

Talk to a mortgage broker in Portugal

Planning to buy a property in Portugal? Book a free video call with Rafael Fonseca, send a message on WhatsApp at +351 965 406 326, or use the contact form on the website to discuss your situation.

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.