Purchasing a property in Portugal may seem like an exciting prospect. The finance, however, is different to the UK. This guide explains how mortgages for Portugal work and how a broker streamlines the process for non-residents.
How Portuguese mortgages work (non-resident vs resident):
- Deposit/LTV – non-residents are commonly offered lower loan-to-value ratios than residents.
- Rate type – many loans are Euribor + margin (variable). Fixed-rate options exist but can be time-limited.
- Affordability – lenders assess global income and debts; foreign income may need extra verification.
- Insurance – buildings insurance is standard; life insurance is sometimes requested.
- Age and term limits – maximum ages at maturity and term caps apply.
Tip: Choose the mortgage currency carefully. Borrowing in euros while earning in another currency introduces FX risk that should be managed.
Key costs & legal steps to budget for:
- IMT (property transfer tax), stamp duty, notary and registration fees
- Valuation and bank arrangement fees
- Lawyer’s fees (highly recommended for non-residents)
- Translation/interpretation where required
Regulatory and tax frameworks evolve, so take advice on current rules before you commit.
Typical timeline & process:
- Pre-assessment & AIP – broker reviews income, assets and liabilities; obtains an agreement in principle.
- Portuguese tax number (NIF) & bank account – usually required to transact.
- Promissory contract (CPCV) – a legally binding contract with deposit is common before completion.
- Valuation & underwriting – bank instructs valuation; full document review follows.
- Final offer & deed (Escritura) – completion at a notary; funds are released and title is registered.
A broker coordinates these.
Documents you’ll likely need:
- Passport(s) and proof of address
- Proof of income (salary, dividends, rental, etc.) and recent tax returns
- Recent bank statements and asset/liability summary
- Details of any existing mortgages and loans
- Preliminary property documents (title/extracts) for the chosen asset
Non-standard income (bonuses, company profits, investment income) may require additional evidence.
How a broker adds real value:
- Lender access – introductions to Portuguese banks and international lenders willing to work with non-residents.
- Deal structuring – aligning rate type, currency, term and repayment to your cash flow and objectives.
- FX and affordability planning – mitigating currency risk and meeting local debt-service rules.
- Process control – coordinating valuation, underwriting, legal and notary timelines to avoid costly delays.
- Clear communication – translating lender expectations into a concise document checklist so your first submission is right.
Why Empire Global Finance?
We arrange mortgages for Portugal for UK and international clients with varied income profiles. We structure the mortgage, manage lender relationships, and keep the process moving from AIP to deed, so you can focus on the home, not the paperwork.