Non-resident mortgage in Portugal: banks, loan limits and key steps

How a non-resident mortgage in Portugal finances a home from abroad

Portugal attracts British, French, Brazilian and North American buyers to Lisbon, Porto, the Algarve and Madeira. There is no restriction on foreigners owning property, so the practical hurdle for a non-resident mortgage in Portugal is persuading a Portuguese bank to lend against income earned outside the country.

Banks distinguish between non-residents who will keep living abroad and newcomers settling in Portugal. This page concerns the first group: holiday-home owners, investors and future retirees who buy before moving, all of whom are assessed on foreign income and documents.

Banks with a published non-resident offer

novobanco has an English page for mortgages to non-resident foreigners and was reported by the property press as offering competitive spreads to this group. BPI, part of the CaixaBank group, presents dedicated solutions for non-resident foreigners within its home-loan range.

Santander in Portugal runs an English-language page explaining how to obtain a mortgage in Portugal as a foreigner. Millennium bcp and Caixa Geral de Depósitos also lend to non-residents, typically through international or emigrant client teams rather than a single public product page.

Comparing the main lenders

The overview below focuses on how each bank approaches a non-resident mortgage in Portugal. Spreads and fees on a mortgage for non-residents move often, so request the European Standardised Information Sheet, known locally as FINE, from each lender and compare the annual percentage rate on identical loan amounts.

Who is a good fit

The best candidates for a non-resident home loan show steady employment or documented self-employed income, little other debt, savings to cover the deposit and taxes, and residence in a country whose documents Portuguese banks can verify. Borrowers close to retirement may face a shorter maximum term.

Banco de Portugal limits on a mortgage for non-residents

Since 2018, a Banco de Portugal macroprudential recommendation caps loan-to-value at 90 percent for a borrower's own permanent home and at 80 percent for other purposes. A holiday home or investment flat bought by a non-resident therefore falls under the stricter ceiling.

The same framework limits the share of income absorbed by all debt payments and restricts maximum maturities, with shorter terms for older borrowers. Many banks apply internal limits below the regulatory cap for non-residents, so a deposit of around a third is often requested.

Disclosure rules and early repayment

Mortgage credit is governed by Decree-Law 74-A/2017, which transposed the EU Mortgage Credit Directive. The bank must provide the FINE before the contract and allow a reflection period of at least seven days on the binding proposal before the borrower signs.

The decree also caps early repayment fees, at 0.5 percent of the amount repaid for variable-rate loans and 2 percent for fixed-rate loans. Borrowers paid in another currency are protected by specific rules on foreign-currency loans, although most lending is simply in euros.

Purchase costs beyond the loan

Buyers with a non-resident mortgage in Portugal pay municipal property transfer tax (IMT) on a progressive scale, stamp duty of 0.8 percent of the price, notary or land registry fees and the bank's valuation and processing charges. A separate stamp duty applies to the mortgage loan itself.

Steps for a non-resident buyer

1. Obtain a NIF tax number, appointing a tax representative if you live outside the EU.
2. Open a Portuguese bank account, usually with the lending bank.
3. Send identity documents, income evidence, tax returns, bank statements and a credit report from your country.
4. Receive a pre-approval and sign the promissory purchase contract only once financing is confirmed.
5. Allow the bank's appointed valuer to inspect the property.
6. Study the FINE and binding proposal during the reflection period.
7. Sign the deed with the mortgage, in person or through a power of attorney, and register it.

Red flags and frequent errors with a non-resident home loan

Remote buyers in the Algarve and Lisbon are frequent targets for fake intermediaries and rushed promissory contracts. The following situations come up again and again in complaints by foreign purchasers and deserve attention before any deposit is wired to Portugal.

• A so-called credit consultant who demands a fee to secure approval from a Portuguese bank before any FINE has been issued; check registered intermediaries with Banco de Portugal.
• Signing a promissory contract that forfeits the deposit if the mortgage is refused.
• Assuming the golden visa route still applies to property; it was removed in 2023.
• Overlooking currency risk when income is in pounds, dollars or reais.
• Skipping a lawyer's check of the land registry and licence of use.

Questions from non-resident buyers

The answers below reflect general practice among Portuguese banks in 2026 for clients living abroad. Each lender decides case by case and policies change, so confirm any condition that matters to your purchase in writing before you sign a promissory contract.

Can I still get a golden visa by buying property?

No. The 2023 More Housing law ended residence permits granted through real-estate investment. A mortgage-financed purchase no longer opens a residence route, and buyers who wish to live in Portugal need another visa, such as the passive income D7 visa.

Do Portuguese banks lend to Brazilians living in Brazil?

They can, subject to verifying income and tax returns from Brazil and accepting the currency risk on income in reais. Some banks have long-standing teams for Portuguese-speaking clients, which can simplify document review compared with other nationalities.

Is a fixed rate available?

Yes. Portuguese banks offer variable loans linked to Euribor, fixed-rate loans and mixed loans with an initial fixed period. Fixed periods give certainty on payments, but carry a higher early repayment fee cap than variable loans.

How long before the deed can be signed?

Allow several weeks for document checks and valuation, plus the seven-day reflection period. Remote buyers often grant a power of attorney to a lawyer so that the deed can be signed in Portugal without travelling.

By Nabil Frik · Updated 28 October 2026