Portuguese mortgage questions, answered
The questions we are asked most often by international buyers, answered without the marketing.
Can you get one?
Can a foreigner get a mortgage in Portugal?
Yes. There is no nationality restriction. What affects your terms is whether you are tax resident in Portugal, how your income is documented, and the property.
Can a non-resident get a mortgage in Portugal?
Yes, including buyers who have never lived in Portugal. Expect a lower loan-to-value than a resident would be offered, which means a larger deposit.
Can an American get a mortgage in Portugal?
Yes. US buyers evidence income through IRS returns rather than payslips, and FATCA reporting narrows which lenders are comfortable. Both are manageable with the right preparation.
I am retired. Am I too old?
Age limits the term rather than eligibility. Lenders cap your age at the end of the loan, so an older borrower is offered a shorter term and therefore a higher monthly payment.
I have no Portuguese credit history. Is that a problem?
No. Lenders substitute your home-country credit report and bank statements. Having no history is very different from having poor history.
Deposit, costs and borrowing
How much deposit do I need?
More as a non-resident than as a resident, and more for a second home than a primary residence. The exact figure depends on the lender and the property, and we work it out from your numbers rather than a rule of thumb.
What are the costs of buying beyond the price?
IMT (transfer tax) on a progressive scale, stamp duty on both the purchase and the loan, notary and registration fees, the lender’s valuation and arrangement charges, mandatory life and buildings insurance, and your lawyer. Budget for them on top of the price.
Do you publish your rates?
No. What you are offered depends on your file, and a headline figure on a website tells you very little about what you would actually pay. We show you real offers once we have them.
What does your service cost me?
Nothing. We are paid a commission by the bank that funds your mortgage, and that is our entire income from your file. You are never invoiced, nothing is deducted from your loan, and there is no charge if the application does not proceed. Because our fee sits on the lender’s side, using us does not make your mortgage more expensive than approaching that bank directly.
Should I choose fixed or variable?
It depends on how exposed you are. Variable tracks Euribor plus a spread and moves with the market; fixed buys certainty for an initial period and costs more for it. If you earn in a currency other than euros, certainty tends to be worth more than the spreadsheet suggests.
Paperwork and timing
What documents will I need?
Identification, a Portuguese tax number, proof of address, recent tax returns, several months of bank statements, income evidence and a home-country credit report. Self-employed and company-owner files need business accounts on top. We send one consolidated list at the start.
How long does it take?
Roughly a couple of months from a complete application to the deed. Delays come almost entirely from documents arriving piecemeal or property problems found late.
What is a CPCV and why does it matter?
The promissory contract. It binds both parties and usually involves a substantial deposit. Walking away after signing it is expensive, so your mortgage position should be clear before you get there.
Do I need a NIF?
Yes, to buy property in Portugal and to open a bank account here. Non-EU non-residents usually appoint a fiscal representative at the same time.
Do I need to be in Portugal for the deed?
Not necessarily. It can be signed by a representative acting under a power of attorney if you cannot travel.
Do I need a Portuguese lawyer?
You are not required to have one, and you should. Title, licensing and the promissory contract are where money is lost, and none of that is the broker’s job.
Question not answered here?
Ask us directly. We would rather give you a straight answer than have you guess.