Getting a Mortgage in Portugal as a Non-Resident

One of the first questions international buyers ask us is whether they can get a Portuguese mortgage. The answer is yes — several major Portuguese banks actively lend to non-resident buyers — but the terms are different from what resident buyers get, and preparation matters more than in other markets.

Understanding your financing position before you start viewing properties is essential. Making an offer without clarity on your mortgage puts you in a weak position. Here is what you need to know.

Key differences: non-resident vs resident mortgages

The 70% LTV cap is the most important number to understand. It means you need to bring at least 30% of the purchase price as a deposit, plus the taxes and fees on top (another 6–8%). For a €500,000 property:

• Minimum deposit: €150,000 (30%)
• Taxes and fees: ~€37,000
• Total cash required upfront: ~€187,000

Which banks lend to non-residents?

The main Portuguese banks that actively offer mortgages to non-resident buyers include:

• Millennium BCP — one of the most experienced with international buyers; English-speaking mortgage advisers available
• Novo Banco — competitive rates; good experience with French and UK buyers
• Santander Portugal — good for buyers with existing Santander relationships elsewhere
• Caixa Geral de Depósitos — Portugal’s largest state bank; often more competitive on fixed rates
• BPI (owned by CaixaBank) — useful for Spanish-connected buyers

We work with mortgage brokers who know which banks are currently most competitive and which are most efficient for non-resident applicants. Interest rate environments change, so current rate comparisons should be done with a specialist.

Fixed or variable rate?

Portuguese mortgages are typically offered as:

Variable rate (Euribor + spread): The interest rate tracks the 3 or 12-month Euribor rate plus a fixed bank spread (typically 0.8–1.5% for non-residents). Your monthly payment changes as Euribor moves. This was the norm when rates were low; it carries more risk in higher rate environments.

Fixed rate: A fixed interest rate for a defined period (5, 10, 15 or 20 years), then typically converting to variable. Fixed rates provide payment certainty but tend to be slightly higher than variable rates when Euribor is low.

Mixed rate: Fixed for an initial period, then variable — increasingly common.

The right choice depends on your risk tolerance, how long you plan to hold the property and the current rate environment. A good mortgage broker will model both scenarios for your specific situation.

Required documentation

Portuguese banks are thorough. Prepare these documents in advance:

For employed buyers:

• Last 3–6 months’ payslips
• Last 2 years’ P60 / tax returns / employment contracts
• 3 months’ bank statements showing salary deposits
• Passport and proof of address

For self-employed buyers:

• Last 2–3 years’ tax returns (certified copies)
• Accountant’s reference letter confirming income level
• Business bank statements (3–6 months)

For all buyers:

• Details of any existing mortgages or loans
• Evidence of deposit funds and their source (anti-money laundering requirements are strict — you need to show a clear, documented trail for your deposit funds)

The AML (anti-money laundering) documentation is taken seriously and can take time to gather. Start early.

Timeline

Getting a mortgage offer in Portugal typically takes 4–8 weeks from submission of a complete application. The process:

1. Initial assessment (1–2 weeks): Bank reviews your application and runs an initial assessment of your income vs. the proposed loan
2. Property valuation (1–2 weeks): Once a property is under offer, the bank commissions its own valuation (avaliação)
3. Formal offer (1–2 weeks): Bank issues a formal mortgage offer (proposta de crédito)
4. Completion: The mortgage completes at the notary on the same day as the escritura

The valuation and legal checks on the property run in parallel with the mortgage process. A good lawyer and buyer’s agent will coordinate these timelines to avoid unnecessary delays.

Financing from your home country

An alternative for some buyers — particularly those with significant equity in property at home — is to finance the Portuguese purchase through a mortgage against their existing property (a remortgage or equity release in the UK, a HELOC in the US, a crédit hypothécaire in France).

This can offer:

• Potentially lower interest rates (depending on your home market and credit profile)
• No Portuguese LTV restrictions
• Simpler documentation requirements (your bank already knows you)

The downside is that you are using your home as security for a foreign investment, with currency risk if your income is not in euros.

Our recommendation

Sort your financing before you start viewing. Know your maximum purchase price including costs and deposit. Get an agreement in principle if you can — it makes your offers significantly stronger and shows sellers and agents that you are a serious buyer.

We can connect you with mortgage brokers who specialise in non-resident Portuguese mortgages and who will give you an honest picture of what you can borrow and on what terms. Book a free call to get started.