Mortgages in Portugal
Foreign nationals are able to obtain mortgage loans to buy real estate in Portugal on favourable terms. The lowest interest rates are less than 3% and local banks issue loans for both newly-built and existing property.
Maximum LTV ratio | 70% |
Initial instalment | 30% of the property value |
Rates | from 2.5% per annum |
Loan term | Up to 30 years |
Minimum age of the borrower | 18 |
Maximum age of the borrower by the end of the loan term | 75 |
Maximum percentage of monthly income for mortgage | 50% |
660,000 €
Total area 72 m² 1 bedroom
555,000 €
Total area 56 m² 1 bedroom
785,000 €
Total area 131 m² 1 bedroom
830,000 €
Total area 136 m² 2 bedrooms
810,000 €
Total area 116 m² 2 bedrooms
895,000 €
Total area 254 m² 2 bedrooms
From 1,000,000 €
Completion in: 2027.II Total of 60 apartments
From 4,300,000 €
Built in 2024 15 units in total
Documents
Mortgage applications in Portugal require the following documents:
- passport copy;
- individual taxpayer number (número de identificação fiscal, NIF or número contribuinte);
- bank statements for the last three months;
- personal income tax form for the last year;
- employment contract (identifying position and salary);
- proof of address (bank correspondence with name and address, utility bills);
- sale and purchase agreement or preliminary agreement for the property to be purchased;
- letter of recommendation from another bank.
All of the documents need to be officially translated into Portuguese and certified with an Apostille. The loan application approval process typically takes 1–4 weeks.
Extra costs
Non-recurring mortgage costs in Portugal amount to approximately €1,400. Insurance costs another €70—150 per month.
Property appraisal and Due Diligence | About €280 |
Compulsory borrower’s life and property insurance | €70—150 per month |
Mortgage arrangement fee | About €1,200 |
Early repayment penalty | 0,5–2% of the early repayment amount |
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