Portugal financing guidePortugal is one of the easiest southern European countries to borrow in as a non-resident, which is part of why it draws British, American, French and Brazilian buyers. Banks will lend to people who live abroad, though at a lower loan-to-value than for residents, and the interest rate follows Euribor. The golden visa rules also changed in 2023, so older advice about property-linked residency is outdated.
How much can a non-resident borrow?
Banks such as Caixa Geral de Depósitos, Millennium bcp, Santander Portugal, Novo Banco, BPI and Banco CTT lend to non-residents on a case-by-case basis. A typical offer is up to 70% of the lower of purchase price and valuation for a second home or holiday property, compared with up to 90% for a resident buying a main home. Loans of 20-30 years are standard, but the term is often cut so that the loan ends before the borrower is about 70-75.
Banks also test affordability by applying a stress rate and a limit on total debt service, under Bank of Portugal macroprudential guidance. Income earned abroad is accepted, but lenders ask for translated, certified documents and may only count a portion of rental income. Buyers from outside the EU should expect extra caution. See our Portugal buying guide for the legal side.
Rates and Euribor
Most Portuguese mortgages are variable, set as 3-, 6- or 12-month Euribor plus a spread. Spreads for non-residents are often 1.5 to 2.5 percentage points, with discounts if you take insurance, a card or open a salary account. Fixed rates and mixed rates (fixed for the first years, then variable) are available too. The European Central Bank raised its deposit rate to 2.25% in June 2026 and to 2.50% in September 2026, and Euribor has risen with it, so check current quotes. Compare offers using the mortgage calculator before you pay for a valuation.
IMT and the other costs of buying
Municipal property transfer tax (IMT) is progressive: a small share of the price on cheaper homes, rising through several bands to roughly 6-8% on higher-priced residential property, with different tables for main homes and second homes and a flat rate for land and some other property. Decree-Law 97/2026 introduced a flat 7.5% IMT for non-residents buying urban residential property, with exemptions such as for buyers who become Portuguese tax residents within two years; sources differ on whether it applied from late May or 1 September 2026. Stamp duty adds 0.8% of the price, and a further stamp duty applies to the mortgage. Notary and registry fees follow, and the bank charges for valuation and arrangement. Annual municipal property tax (IMI) is about 0.3-0.45% of tax value for urban homes, with higher rates for non-residents in some cases and an additional tax on high-value holdings. All of these figures are approximate; verify them locally.
| Cost | Approximate level |
|---|---|
| IMT transfer tax | Progressive for residents, up to about 6-8%; flat 7.5% for most non-resident buyers under a 2026 decree |
| Stamp duty on purchase | 0.8% of price |
| Stamp duty on the loan | About 0.6% of loan for terms over five years |
| Notary, deed and registry | Roughly 1-1.5% in total |
| Valuation and arrangement | A few hundred to a few thousand euros |
| Annual IMI property tax | About 0.3-0.45% of tax value |
Step by step
- Get a Portuguese tax number (NIF) and open a local bank account. Most lenders require both.
- Obtain a pre-approval and choose a house, villa or apartment.
- Sign a promissory contract (CPCV) and pay a deposit, usually 10-30%.
- The bank orders a valuation and issues a formal offer.
- Sign the deed (escritura) before a notary, with the mortgage registered at the same session.
A lawyer should check the land registry, the habitation licence and any outstanding debts on the property. Rural properties and land need special attention to what is buildable.
Residency and the golden visa
The golden visa route that allowed residence by buying property was closed to new applicants in October 2023. Investment funds, certain job-creation and cultural-donation categories remain. This matters for financing because a loan used to buy a home no longer links to a visa. Other options such as the D7 passive-income visa require proof of stable income and are unrelated to property purchase, though many D7 holders do buy. Check current rules with an immigration lawyer.
If a loan is too expensive
Some buyers fund a Portuguese purchase from equity in a property at home, which can cost less than a Portuguese loan priced above Euribor. Others opt for off-plan payment schedules. For budgeting, see cheap properties, under 100,000 and commercial units, then compare with the Portugal market analysis and the full Portugal property pages.
Portugal's banks will lend to foreigners; the real differences are a lower loan-to-value, a bigger spread and a thicker document file.
Last updated 8 October 2026
Frequently asked questions
Can non-residents get a mortgage in Portugal?
Yes. Several major banks lend to non-residents, usually up to about 70% of value, with a higher spread than residents receive.
Do I need a NIF?
Yes. A Portuguese tax number is required for the purchase, the mortgage and utilities. Non-EU residents may need a fiscal representative.
Is the golden visa still available for property?
No. Property purchases stopped qualifying in October 2023. Other investment categories and visas for passive income or remote work remain.
How is the interest rate calculated?
Usually Euribor plus a spread. After two ECB rate rises in 2026, taking the deposit rate to 2.50%, Euribor has risen from earlier lows, so request current offers.
What is IMT?
It is the municipal property transfer tax, paid by the buyer before the deed is signed. Its rate depends on price, use and location, and a flat 7.5% now applies to most non-resident buyers of urban homes under a 2026 decree.
Can I use rental income to qualify?
Banks accept part of it, often with a discount, and may require a rental contract. Salary or business income carries more weight.