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Thinking about buying property in Portugal but unsure how to finance it? The good news is that foreigners can get mortgages in Portugal, whether you’re an expat, investor, or non-resident.
Portuguese banks offer financing options for international buyers, usually covering 60–70% of the property value.
In this guide, we’ll walk you through the process step by step—eligibility, required documents, costs, and practical tips—to help you secure the right mortgage and make your property purchase in Portugal smooth and successful.
Mortgage Conditions
When you apply for a mortgage in Portugal, banks look at several key conditions. The interest rate can be fixed, variable, or mixed, usually linked to the Euribor plus the bank’s margin. Mortgage terms are generally quite flexible, often ranging from 10 to 30 years, depending on your age and financial profile.
Banks assess lending criteria such as income stability, debt-to-income ratio, and overall financial health. The loan-to-value (LTV) varies: residents may access higher LTVs, while non-residents typically receive financing up to about 70% of the property price.
Most banks also require life insurance, which is tied to the outstanding loan, and home insurance, covering the property’s structure. These policies protect both the borrower and the lender throughout the mortgage term.
Benefits of Getting a Mortgage In Portugal
Long Repayment Terms
Portugal offers generous repayment periods—often up to 30 years—making monthly instalments more manageable and giving buyers plenty of financial breathing room.
Attractive Mortgage Rates
Portuguese banks generally offer competitive interest rates compared to many other countries. This makes financing a property more affordable, especially for long-term planning.
Accessible to Foreign Buyers
You don’t need to be a resident to get a mortgage. Banks are very comfortable lending to international clients, which makes buying in Portugal much more accessible than in many other markets.
Strong Investment Opportunity
Financing a property can enhance your return on investment. You can rent out the property freely—there are no restrictions on renting homes purchased with a mortgage—allowing you to generate rental income while the property appreciates over time.
Types of Mortgages Available in Portugal
Fixed-Rate Mortgage
This option keeps your interest rate unchanged for the entire fixed period, which means your monthly payment stays exactly the same. It’s ideal if you prefer predictability and want to safeguard your budget from future rate increases. Many buyers choose it for peace of mind, even if the initial rate is slightly higher.
Variable-Rate Mortgage
With this option, your rate moves with the Euribor, plus the bank’s margin. Your monthly payment can rise or fall over time, depending on the market. It’s attractive if you’re comfortable with fluctuations and want the possibility of benefiting from lower rates when the Euribor drops.
Interest-Only Mortgage
This type is less common in Portugal, but still possible in certain investment scenarios. For a set period, you pay only the interest, keeping monthly costs low at the start. It can be useful for investors who want to preserve cash flow, but keep in mind that the full principal will still need to be repaid later.
Step-by-Step Process of Getting a Mortgage in Portugal
1. Research Banks
Start by exploring lenders that work with foreign buyers. You can check online, speak with real estate agents, or consult a mortgage broker to compare options and find the best fit.
2. Gather Required Documentation
Prepare your documents early—typically a passport, proof of income, recent bank statements, and a credit report. Having everything ready helps speed up the process.
3. Submit the Application
Once you’ve chosen a lender, submit your application along with all the supporting documents. The bank will review your financial profile and run their initial checks.
4. Obtain a Mortgage Offer
If your application is approved, the bank issues a formal mortgage offer outlining the loan amount, interest rate, repayment terms, and any additional conditions.
5. Property Valuation
Before final approval, the bank will order a valuation to confirm the property’s market value and ensure it aligns with the amount being financed.
6. Finalize the Purchase
After the valuation and final checks, the mortgage is issued. You can then move forward with signing the deed and completing the property purchase.
Documents Required to Get a Mortgage in Portugal
Non-residents will typically need to provide the following documentation to support their mortgage application:
- Passport
- Portuguese Tax Number (NIF)
- Address Proof or residency
- Credit report
- Last 3 pay slips
- Recent bank statements
- Most recent tax returns
- Property documents
Get In Touch With Us
Portugal Residency Advisors® has helped hundreds of international families and investors secure residency, citizenship, and investments in Portugal. Discover how our trusted approach makes your move simple and successful.
Costs and Fees for Mortgages in Portugal
Buying a property in Portugal comes with several upfront costs that buyers should plan for, both on the purchase side and the mortgage side. To give you a clear picture, here’s a simple breakdown of the typical taxes, fees, and mortgage expenses for a €500,000 property.
Best Mortgages Banks for Foreigners
The best Portuguese mortgages for non-residents can vary depending on individual financial circumstances, preferences, and eligibility criteria. Here are a few that are often considered:
- Novobanco
- Banco Santander Totta
- Millennium BCP
- UCI
- Caixa Geral de Depósitos
Working With a Mortgage Broker in Portugal
Access to More Mortgage Options
A broker can open the door to a wider range of lenders, including some that aren’t easily accessible to the general public. This makes it easier to find a mortgage tailored to your financial profile and goals.
Expert Advice
They guide you through each step—from understanding different mortgage types to comparing rates and terms—so you can make confident decisions without feeling overwhelmed.
Saves You Time
Instead of contacting multiple banks yourself, the broker handles the research and negotiations. This lets you focus on other priorities while they do the heavy lifting.
Specialized in Foreign Buyers
Brokers who regularly work with international clients understand the paperwork, requirements, and challenges foreigners face when buying in Portugal, making the process much smoother.
No Extra Cost to You
Most brokers are paid by the lenders, not by the borrower. With their negotiating power, they can often secure better rates and conditions than you would get on your own—without adding any extra fees to your purchase.
For more videos about investing or moving to Portugal, explore our YouTube channel here: YouTube Channel Portugal Residency Advisors.
Portuguese Mortgage Glossary
TAEG: This is the Portuguese equivalent of the APR. It includes the interest rate plus all mandatory costs, giving you the true total cost of the mortgage.
Euribor: A benchmark interest rate used across Europe. In Portugal, most variable-rate mortgages are based on the Euribor plus the bank’s margin.
Spread: This is the bank’s fixed margin added on top of the Euribor. Your final rate = Euribor + Spread.
LTV (Loan-to-Value): The percentage of the property price the bank is willing to finance. For foreigners, it’s usually around 70%.
Tenor: refers to the total length of the loan — the number of years you have to repay it.
Why Work With Us
At Portugal Residency Advisors®, we collaborate with carefully chosen premium mortgage brokers in the market.
We streamline the entire process of applying for a mortgage, handling all the paperwork from obtaining your NIF number to opening your bank account, and liaising with our mortgage partners on your behalf.
Working with us can save you time, effort, and even money in the long run.We’ll help you avoid common mistakes and pitfalls that many expats or first-time home buyers encounter, and provide peace of mind throughout the entire process.
So if you’re ready to find your dream home, consider partnering with us to make the process smooth and stress-free.
Frequently Asked Questions
Can foreigners get a mortgage in Portugal?
Yes. Foreigners, including non-residents, can apply for mortgages in Portugal, though requirements may differ from Portuguese citizens.
How much deposit do foreigners need for a mortgage in Portugal?
Most lenders require a deposit of at least 20% from foreigners, meaning the loan-to-value (LTV) is usually capped at around 80%.
What documents are required for a mortgage in Portugal?
Typically: passport, Portuguese NIF, proof of address, credit report, pay slips, bank statements, tax returns, and property details.
What are the typical mortgage rates in Portugal?
Rates vary by lender and type of mortgage. In 2025, new contracts average around 2.8%–3.3%, with fixed, variable, and mixed-rate options available.
How long can a mortgage term be in Portugal?
Mortgage terms can extend up to 40 years, although shorter terms are common. Longer terms reduce monthly payments but increase total interest paid.
Can non-residents apply for a Portuguese mortgage?
Yes, but non-residents may face stricter conditions, such as higher deposits and slightly higher interest rates.
Do I need a Portuguese bank account to get a mortgage?
Yes. A local bank account and Portuguese tax number (NIF) are required to process a mortgage.
Should I use a mortgage broker in Portugal?
Yes. Brokers can help foreigners access more lenders, secure better rates, save time, and navigate the process with expert guidance.
How long does it take to get a mortgage in Portugal?
The process usually takes 4–8 weeks, depending on the lender, documentation, and property valuation.
Can buying property with a mortgage in Portugal help me get residency?
Not directly. Property no longer qualifies for the Golden Visa, but you may still apply for visas such as the D7 or D2.
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