Getting a Mortgage in Portugal as a Foreigner: What You Need to Know

Thinking about buying a property in Portugal but need financing?

Many foreign buyers successfully get mortgages here, and with the right help, so can you. Whether you’re relocating, buying a second home, investing in property or looking to finance a property you already own, Portuguese banks offer attractive mortgage solutions for Dutch nationals, even if you’re not a resident of Portugal.

But how do you find out which bank offers the best deal with the most favourable interest rate, or which bank is willing to provide the highest loan amount? In this article, we’ll tell you everything you need to know to successfully secure a mortgage in Portugal.

Who Can Apply for a Mortgage in Portugal?

Naturally, mortgages are granted to Portuguese nationals, but non-Portuguese nationals living in or outside Portugal can also apply for a mortgage in Portugal. If you are an EU citizen or from outside the EU, there are certainly options for securing a mortgage in Portugal for a property there. Portuguese banks do, in fact, grant mortgages to:

• Non-residents
  
  
• Expats living in Portugal
  
  
• Golden Visa applicants
  
  
• Remote workers and retirees
  
  

Banks may ask for translations of certain documents or offer slightly different terms for non-residents/non-Portuguese nationals, but the terms for a mortgage in Portugal for non-residents are still very favourable.

How Much Can You Borrow?

The amount you can borrow depends on your residency status and your income. Generally speaking:

• Non-residents (i.e. not resident in Portugal): up to 70% or 80% of the property’s value (loan-to-value ratio)
  
  
  
• Portuguese residents: up to 90% (and for those under 35, there are options for up to 100% financing)
  
  

This means most foreigners when taking out a mortgage in Portugal, you must have at least 20% to 30% of the purchase price plus the purchase costs available as your own funds.

Required Documents for a Portuguese Mortgage

Although the exact requirements vary from lender to lender, you will usually need to provide at least the following:

• A valid passport or ID
  
  
• Portuguese NIF (tax number)
  
  
• Proof of income (payslips, pension statements for the last 6 months)
  
  
• Recent bank statements (6 months’ worth of account statements showing fixed expenses and income/salary)
  
  
• Credit report (from your country of residence; in the Netherlands, this is also known as the BKR report; you can request this online, but it will be sent by post and is valid for 6 months)
  
  
• Tax return (from your home country)
  
  
• Property details once you've chosen a home
  
  

If you are self-employed, additional business information will be requested to demonstrate the stability of your business operations to the bank.

What Are the Typical Mortgage Terms?

Mortgage terms for non-residents can be flexible, particularly with a good broker. Typical terms include:

• Loan duration: up to 30 or 40 years (the mortgage must be repaid by the time the borrower reaches the age of 75 or 80; this varies by bank)
  
  
• Interest rate: fixed, hybrid or variable (linked to Euribor)
  
• Repayments: monthly instalments – there is no interest-only mortgage option in Portugal
  
  
• Early repayment: usually permitted, subject to a (small) fee
  
  

Interest rates in Portugal remain competitive, particularly compared with other European countries. Ask CasaFinance for the latest interest rates on mortgages in Portugal.

Tip: Get Pre-Approved Before You Buy

Pre-approval for a mortgage gives you clarity on your budget and can speed up the buying process. Sellers also have more confidence in buyers who have been pre-approved.

Need Help? Let Casa Finance Do the Hard Work for You

Applying for a mortgage in a foreign country can be challenging, especially when dealing with a new language and different financial systems.

Casa Finance, Divine Home’s trusted financing partner, is here to help.

Their team specialises in assisting international buyers through every step of the mortgage process in Portugal:
From the paperwork to negotiating the best terms with the bank, they’ve got you covered.

👉 Visit Casa Finance’s website to explore your options or book an introductory meeting with a mortgage adviser straight away for a no-obligation introduction to mortgages in Portugal.