Property buying guide for Portugal
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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 50-60%
Rates 2.5-4% per annum
Loan term Up to 35 years
Minimum age of borrower 25
Maximum age of borrowerby the end of the loan term 70
Maximum percentage of monthlyincome for mortgage 33%

Documents

Mortgage applications in Portugal require the following documents:

  • passport copy
  • individual taxpayer number (número de identifição fiscal, NIF or número contribuinte)
  • bank statements for the last six 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)
  • letter of recommendation from another bank.

The loan application approval process typically take 1-4 weeks.

Extra costs

Non-recurring mortgage costs in Portugal amount to approximately €1,400. Insurance costs another €70-150 per month.

Property appraisaland Due Diligence About €250
Compulsory borrower's lifeand property insurance €70-150 per month
Mortgage arrangement fee About €1,200
Early repayment penalty

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    Property buying guide for Portugal
    Article 3 of 6
    Tranio’s managers offer advice on buying real estate in Portugal
    Kseniya Kolesnikova
    Kseniya Kolesnikova
    Real Estate Expert
    +44 17 4822 0039
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