Getting a mortgage in Portugal as a foreigner for your property investment is common and streamlined, particularly if you hold Portuguese residency. Portuguese banks offer mortgages both to residents and non-residents of Portugal. This makes entering the market particularly attractive, as there are many advantages to buying property in Portugal. Some of these include the relatively low real estate prices and little to no restrictions on foreigners acquiring property.
Additionally, it is easy for foreigners to get a mortgage if they plan on buying property in Portugal. Most local lenders are well acquainted with the process. People can get mortgages for all types of real estate, including residential, commercial, industrial, etc. Regardless of whether you’re buying a home, a shop, or a restaurant, you can leverage your investment for 25 to 30 years with competitively low-interest rates.
What to Discover in This Guide?
- Mortgage Rates in Portugal for Foreign Buyers
- When to Start Applying for a Portuguese Mortgage
- Benefits of Getting a Mortgage in Portugal
- Types of Mortgages in Portugal
- The Minimum Deposit and Loan-to-Value Ratio
- How Much Can You Borrow with a Mortgage in Portugal as a Foreign Buyer?
- Required Documents to Apply for a Mortgage in Portugal
- Applying for a Mortgage
- Fees Related to the Mortgage Applications
- Mortgage Repayment Calculator
- Mortgaging the Portugal Golden Visa Investment
Mortgage Rates in Portugal for Foreign Buyers
According to the INE Portugal, mortgage interest rates in Portugal eased slightly in August 2025. The average rate across all home loans fell to 3.31%, while new mortgages taken out recently had lower rates, around 2.88%.
Most homeowners are paying an average of €394 per month on their mortgages. Half of that goes straight to interest. Compared to last year, it’s €10 cheaper. So there is a small sigh of relief. However, if you are signing a new loan today, you can expect a higher monthly payment of around €651, as new mortgages tend to be for larger amounts. Therefore, it is essential to develop a comprehensive plan.
When to Start Applying for a Portuguese Mortgage
It is best to start applying for a mortgage in Portugal as early as possible on your property acquisition journey. You do not necessarily have to decide on the property you will acquire. Starting early in your property searches will help you prepare for how much the down payment and other terms will be. Plus, with pre-approved financing, you can come across sellers who are more willing to negotiate on price and terms.
When applying for a mortgage as a non-resident in Portugal, keep the ’70/30 rule’ in mind. Many Portuguese banks typically finance up to 70% of the property value. In other words, you will need a cash deposit of 30% to 40%.
In terms of costs, Portuguese mortgage rates remain competitive, sitting around 3% to 4%. You can extend the loan term up to 30 years. However, banks can be strict about affordability. Therefore, your monthly payments usually cannot exceed 35% of your monthly income.
Benefits of Getting a Mortgage in Portugal
As a resident or non-resident in Portugal, you can apply for a mortgage and benefit from its advantages, such as:
- Most Portuguese banks check your property investment to ensure there are no legal issues and arrange a valuation to determine its value. This can help you get a mortgage and make a safe buying decision.
- Your lender will take care of all of your property’s legal checks and valuations.
- You only need to pay around 30% upfront.
- You can use less of your own money while benefiting from property value growth and rental income.
- You can keep your cash available for other investments or expenses instead of spending everything on a single property.
- Mortgage interest rates are often significantly lower than those in the US, UK, or other non-EU countries.
- You are generally free to rent out the property without any restrictions if you prefer real estate investment. You can then make your monthly repayments from your rental income, balancing your financial stability.
- Even if you do not have a residency in Portugal, you can still apply for a mortgage in Portugal.
Types of Mortgages in Portugal
There are two types of repayment options: fixed and variable rates.
Fixed-rate mortgage
Fixed-rate mortgages help borrowers pay the mortgage at a constant rate for a specific period. This period can be either one year or extended to 30 years. If it is for the short term, it will convert into a variable-rate mortgage.
The advantage of the fixed-rate mortgage is that it protects you from fluctuations in a bank’s rate and the European base rate. On the other hand, if you decide to repay early, then you may have to pay a fine on the repaid capital.
Variable-Rate mortgage
This is the most common type of mortgage. In Portugal, variable-rate mortgages start at 3.3% a year when the loan-to-value ratio is 30%. As an alternative, the fixed rate is 4.1% (up to 5 years) for loans with a loan-to-value ratio up to 70%.
With this type of mortgage, you may end up paying different amounts for your mortgage payments depending on Portugal’s mortgage rates. It may last as long as thirty years for most non-residents of Portugal. For the variable-rate mortgage, too, when you decide to make an early repayment, you will be charged on the repaid capital (0.5%).
The Variable mortgage rate in Portugal is indexed to the EURIBOR (it is a basic interest rate reference used to set the interest rates Portugal has on home loans).
The Minimum Deposit and Loan-to-Value Ratio
For non-residents in Portugal, the minimum mortgage deposit is 30%, and the maximum loan-to-value ratio is 70% of the purchase price. Most banks offer loans of up to 65%- 75% of the property’s value or sale price. In some cases, for fiscal residents, it is possible to borrow up to 85%-90% of the same price.
How Much Can You Borrow with a Mortgage in Portugal as a Foreign Buyer?
Foreign investors often ask how much they can borrow when applying for a mortgage. However, there is no direct answer to this question. It mainly depends on several factors determined by the Bank of Portugal. These include:
- The property’s price
- The property’s valuation
- The banks’ specific lending criteria
The Bank of Portugal
As it is stated above, the Bank of Portugal sets maximum loan-to-value limits that Portuguese banks must follow. Nevertheless, the individual banks can apply much stricter limits based on their financial risk policies.
For instance, the Bank of Portugal allows financing up to 80% of a property’s price. Yet individual banks typically lend up to 70% of the property value. For a €200,000 property, the maximum loan would be €160,000 under the Bank of Portugal’s 80% limit, but this could be reduced to €140,000 if a bank applies a stricter 70% lending policy.
Property Valuation vs. Purchase Price
Another essential factor to consider is the bank’s property valuation. Even if the bank finances you up to 90% of the purchase price, it will lend only up to a set percentage of the property’s official valuation.
Accordingly, if your property’s valuation is higher than the purchase price, you may still qualify for full financing within the bank’s limits. If the valuation is lower, the bank will base the loan on that lower amount, meaning you’ll need to make a larger down payment.
Comparing Banks
It is essential to compare banks before you apply for a Portuguese mortgage. You can find more than 15 banks in Portugal that offer different mortgage loans.
Some of the mentioned banks are:
- BBVA
- Santander
- Banco Best
- Bankinter
- Banco CTT
Required Documents to Apply for a Mortgage in Portugal
Portuguese lenders require a list of documents for mortgage applications. In addition to the necessary documentation, you will be asked to present a few more documents depending on your employment status. You can see the required documents below:
- Copy of passport
- Portuguese tax number (NIF)
- Proof of income
- Personal bank statements for the last three months (including the incoming and outgoing capital)
- Proof of address (i.e., recent utility bill)
- Recent mortgage statement
- Proof of savings or investment accounts
- Bank reference letter
- Purchase commitment or sales contract (of the property)
- Life insurance or property insurance
When employed
- Last year’s tax returns
- Payslips for the last three months
- Reference letter from your employer (a letter including the information about how long you’ve been working in the company, how much your gross annual salary is, and other incomes such as bonuses and so on)
When self-employed
When you hold at least a 20% share in a limited company:
- Last year’s tax returns
- Business bank statements for the last three months
- Three years of company profit & loss and balance sheet
Other income
- Proof of pension income for the last three months
- Copy of tenancy agreement for rental properties
- Last three months’ statements showing rent received
- Copy of investment certificates
In addition to these, the bank may require other documents based on an assessment of the level of risk.
Applying for a Mortgage
The first thing to do is to get in contact with a bank or mortgage broker. After the initial assessment, you can follow the steps below for your mortgage application process:
1. Mortgage quote
Within 1-2 days, you will receive a full mortgage quote. There is usually a charge when preparing a quote.
2. Submitting the application forms
When you receive the formal mortgage offer, you will fill in an application form. Then you will submit other related documents.
3. Mortgage deal
You will receive a formal offer upon your mortgage approval. Later, your broker approves the offer’s conditions and helps you with the rest of the procedure.
4. Property valuation report
After receiving the mortgage offer, the bank will arrange a property valuation. When the valuation amount is at least the purchase price, and there are no issues with the property investment, the details will be confirmed.
5. Completion Procedure
Before the completion date, you must transfer the funds to the appropriate account. Once you prove that your funds for the property purchase are available, your lender will proceed with the mortgage application. Then, the completion date will be specific.
6. Completion
As a foreign investor, when you sign the property and mortgage deeds before the Portuguese Notary and pay all the related taxes and fees, you will become the new owner of the property.
Fees Related to the Mortgage Applications
Regular Charges
Regular mortgages require an upfront fee of around €300 for mortgage advisor services, which will be refunded upon completion of the mortgage procedure.
Bank Application Fee
Depending on the bank, the fee will range from €150 to 0.50% of the loan amount (plus tax). When banks cannot make a mortgage offer, they will most often not charge you.
Bank Valuation Fee
It ranges from €175 to €500 and tax. However, sometimes the bank may have done a valuation. In this case, there will be no need for further valuation.
Bank Legal Fees
Your bank will need its own lawyers to search the property’s title and identify any outstanding debt against it. The fee is not fixed; however, all fees will amount to €1,100, and bank legal fees are included in this total.
Lawyer Fee
Most of the lawyers charge you around 1%-2% of the property’s purchase price.
Taxes and Notary Fee
These make up around 5%-6% of the purchase price.
Stamp Duty
Following the completion of the mortgage, the Portuguese government receives 0.8% of the mortgage amount from the applicant’s bank account.
Mortgage Repayment Calculator
Calculate your estimated monthly payments and total interest costs based on your property details.
Mortgaging the Portugal Golden Visa Investment
If you are applying for the Portugal Golden Visa, then you may be wondering if you can take out a mortgage for your investment. Unfortunately, Portugal requires that you transfer the required minimum investment amount from your account outside Portugal.
Get Golden Visa & Get Properties: Your Integrated Partner for Residency and Real Estate in Portugal
Get Properties, the real estate-focused brand of Get Golden Visa, brings your residency, investment, and property acquisition journey together under one integrated service.
Founded in 2014 with the mission of guiding international investors toward the right properties, we have since grown into a comprehensive platform supporting thousands of clients in Portugal.
With teams based in Lisbon and Porto, including legal experts, real estate specialists, investment advisors, and property professionals, we manage the entire process securely from a single point.
How We Support Your Property Journey
On your behalf, we:
- Analyse your needs and objectives
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We are not just a listing provider. We act as your dedicated buyer’s agent and integrated real estate partner.
A Personal, Goal-Oriented Approach
For us, every client represents a story and a new chapter.
We assist families, professionals, and investors in finding properties that align with their lifestyle and long-term goals.
One Team, One Process, Complete Clarity
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Whether you plan to relocate, invest, or acquire a second home in Portugal, Get Golden Visa and Get Properties work together to simplify your entire journey.
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Frequently Asked Questions on Mortgage in Portugal
Is 100% financing available to buy property in Portugal?
Yes, it is possible in Portugal, but rare. You can only see it in special cases such as bank-owned properties, developer-backed deals, or government guarantee schemes for young Portuguese tax residents.
What are the lending criteria for a mortgage in Portugal?
Usually, the banks analyze your financial position and the property’s valuation.
Which documents are accepted as proof of income?
When applying for a mortgage, foreign buyers can prove their income with various documents, for example, rental income, dividend payments, salary income, investment income, and pension income. These incomes are proven via payslips or pension slips, tax returns, and bank statements.
Can I take out a mortgage for business purposes in Portugal?
Yes, if you plan to buy a property, such as a restaurant or a shop, for business purposes, you can take out a mortgage. The maximum mortgage you can take is 50% of the price or the valuation, whichever is lower.
Can retirees take out a mortgage in Portugal?
Yes, if the retiree has a regular pension income.
Are there mortgages for construction?
Yes, there are. You can take around 50%-60% of the total cost of land and construction. However, it is best to consult a mortgage broker if you plan to apply for this kind of mortgage.
What is the cost of buying a house in Portugal?
Below are the taxes and other fees you need to pay when you undertake a home loan:
- Property tax (IMT) : Varies between 2% and 8%.
- Stamp Duty Tax (IMI): 0.8% of the price of the property
- Notary, registry, and tax office fees for property deeds: €1,200
- Estimate of legal fees: €1,800
What is the age limit to take out a mortgage?
Most banks offer mortgages to borrowers up to 70 years old. However, some banks accept individuals aged up to 80.
What is the loan term for residents and non-residents?
For residents, the banks offer terms up to 50 years, while for non-residents, the duration is up to 30 years.
Is it necessary to have life insurance while signing a mortgage loan?
Yes, you have to contract life insurance when you sign a mortgage loan. Sometimes, some banks require home insurance as well.
What is EURIBOR?
The Euro Interbank Offer Rate (EURIBOR) is a reference rate used by eurozone banks. It is based on average interest rates. Average mortgage rates in Portugal also depend on this.
