Mortgages in Portugal for non-residents
You do not have to live in Portugal to borrow here. What changes is how much you put down, how your income is evidenced, and how carefully the file has to be built.
One application, every bank we work with, at no cost to you
You send your information once. We take it to the lenders on our panel, bring back what each will offer, and set the terms out side by side in English.
No fee from us
We are paid by the bank that funds your mortgage. You are never invoiced and nothing is deducted from your loan.
No worse rate
Our commission comes out of the lender’s side. Using us does not make the mortgage more expensive than going to that bank directly.
One contact throughout
The same person from first question to deed, working in English across whatever time zone you are in.
The short version
- Portuguese lenders do lend to non-residents, including buyers who have never lived in Portugal.
- Expect to put down a larger deposit than a Portuguese resident would, and to budget purchase costs on top of the price.
- Your income is assessed from home-country documents — tax returns, statements, employer or company records — not Portuguese payslips.
- You will need a Portuguese tax number (NIF), and in practice a Portuguese bank account.
- From a complete application to the deed, allow roughly a couple of months.
Who counts as a non-resident?
For lending purposes, a non-resident is someone who is not tax resident in Portugal. That covers a lot of people who feel like they are half here: buyers with a holiday home, people who spend a few months a year in the Algarve, and buyers who are mid-move and have not yet registered.
It is not about nationality. A Portuguese citizen living in London is a non-resident. An American who has moved to Lisbon and registered as tax resident is not. The distinction matters because it drives how much a lender will advance.
What lenders are actually assessing
Three things, in this order: whether your income is stable and verifiable, whether the property is worth what you are paying, and whether the two together leave you comfortable. Everything a lender asks for is in service of one of those three questions.
The part that trips international buyers up is the first one. A Portuguese underwriter reading a Schedule C, a UK SA302, a Dutch jaaropgaaf or a set of company accounts is not looking at a familiar document. If it arrives without context, it gets read conservatively. Presented properly, the same income can support a very different outcome.
Deposit, costs and the money you need on day one
The price is not the number that matters. This is:
Your deposit
Non-residents are generally asked for a larger share of the purchase price than residents. The exact figure depends on the lender, the property type and your profile — we give you a number before you make an offer.
Purchase taxes
IMT (property transfer tax) is charged on a sliding scale, and the rate differs depending on whether the property will be your permanent home or a second home. Stamp duty is charged on the purchase and again on the loan.
Everything else
Notary and land registry fees, the lender’s valuation, arrangement charges, and mandatory life and buildings cover. Plus your lawyer. None of it is enormous on its own; together it is not a rounding error.
What Portuguese lenders will ask you for
Every lender has its own list, but the shape is consistent. We give you one consolidated list at the start rather than coming back to you five times.
Everyone
- Passport or national ID
- Portuguese tax number (NIF)
- Proof of your current address
- The last two or three years of tax returns
- Six months of personal bank statements
- A credit report from your home country
- Details of any existing loans and mortgages
If you are employed
- Recent payslips
- Your employment contract
- An employer letter confirming role, salary and permanence
If you are self-employed or own a company
- Two to three years of business accounts
- Business bank statements
- Corporate tax filings
- Evidence of your shareholding and how you draw income
- An accountant’s letter — this one carries more weight than people expect
On the property
- The caderneta predial (tax register entry)
- The certidão permanente (land registry certificate)
- The habitation licence
- The signed promissory contract, or the draft
How the process runs
Pre-assessment
Before you make an offer. We look at the numbers and tell you what is realistic, so you are negotiating with a figure you can actually fund.
Application
The complete file goes to the lenders on our panel at the same time, not one after another. Decisions in principle usually come back within a couple of weeks.
Valuation and offer
The lender instructs a valuation. If it comes in as expected, a formal offer follows with its conditions set out.
Deed
Signed at the notary with the lender represented. Funds are released, the property changes hands and the mortgage is registered.
Different passports, different paperwork
The mortgage is the same product. What changes is what your home country’s documents look like and how a Portuguese underwriter reads them.
United States
Income evidenced through IRS returns rather than payslips. LLC and S-corp income needs presenting in a form an underwriter recognises, and FATCA reporting narrows which lenders are comfortable.
United Kingdom
SA302s and tax year overviews for the self-employed, P60s and payslips for employees. Post-Brexit, UK buyers are treated as third-country nationals, which changes the paperwork rather than the availability.
Ireland, Canada and the EU
Generally the most straightforward files. EU buyers benefit from freedom-of-movement status; Canadian and Irish documentation translates cleanly once it is set out properly.
Retirees on foreign pensions
State, occupational and private pensions are all lendable income. What matters is evidencing that the payments are permanent and will continue for the term of the loan.
Multi-country earners
Income in two or three currencies from two or three jurisdictions is normal for our clients. It needs a clear narrative and consistent documentation, not an apology.
No Portuguese credit history
Not a problem in itself. Lenders substitute your home-country credit report and bank conduct. Having no history is very different from having bad history.
Non-resident mortgage FAQs
Can I get a mortgage in Portugal if I have never lived there?
Yes. Never having lived in Portugal is not a barrier. Lenders will assess your income and credit conduct in your home country instead, and will generally ask for a larger deposit than they would from a Portuguese resident.
How much can a non-resident borrow in Portugal?
It depends on the lender, the property, and how much of your income is verifiable and stable. Non-residents are consistently offered a lower loan-to-value than residents. Rather than quoting a number that may not apply to you, we work it out from your actual figures before you commit to a property.
Do I need a Portuguese tax number to buy?
Yes. A NIF is required to buy property in Portugal and to open a Portuguese bank account. It is straightforward to obtain, and non-residents from outside the EU normally appoint a fiscal representative at the same time.
Can I buy through a company?
It is possible, and sometimes sensible, but it changes the lending landscape considerably and has tax consequences that go well beyond the mortgage. This is one of the situations where having an accounting practice in the group genuinely helps — the two decisions should be made together, not sequentially.
Will the mortgage be in euros?
Yes. Portuguese mortgages are denominated in euros. If you earn in another currency, the exchange rate becomes part of your risk, and it is worth thinking about how you will fund the monthly payment before you commit.
Do I need life insurance?
In practice yes. Portuguese lenders require life cover assigned to the mortgage, and buildings insurance on the property. Health conditions and age affect the premium, and occasionally the availability, so it is worth raising early rather than at the deed.
What happens if the valuation comes in low?
The lender advances against the lower of the price and the valuation, so a shortfall lands on your deposit. It is one of the reasons we look at the property numbers before you make an offer rather than after.
Can I repay early or move the mortgage later?
Portuguese mortgages can be repaid early and can be transferred to another lender. Both have rules and costs attached, and they differ between fixed and variable arrangements. Worth understanding at the outset rather than discovering later.
The information on this page is general market information about how mortgage lending works in Portugal. It is not a credit offer and not a recommendation. Terms available to you depend on the lender and your individual circumstances.
Find out where you actually stand
Send us the property and a short description of how you are paid. We will come back with a realistic assessment before you make an offer.