Mortgages for Portugal
A Practical Guide for Overseas Buyers
16th September 2025
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:
In addition to your deposit, plan 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.
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