Mortgage in Portugal for Foreigners: The Ultimate Guide for 2026

Can foreigners get a mortgage in Portugal?

Yes, foreigners can obtain a mortgage in Portugal without restrictions. Portuguese banks regularly work with non-residents. However, the terms and conditions for non-residents are different from those for residents.

Eligibility criteria for mortgages in Portugal for non-residents

If you’re applying for a mortgage in Portugal as a non-resident, you should expect stricter requirements compared to local buyers. Foreigners must provide a valid passport, proof of income, bank statements, and a tax identification number (NIF). Lenders also assess age, employment stability, and credit history.

Banks in Portugal take a more cautious approach, which affects everything from your deposit to your interest rate. Here’s what you need to know:

• Loan-to-value (LTV) ratio: For non-residents, private banks or Portuguese lenders often provide financing covering 65 to 75 percent of the property’s value. That means you have to cover the rest of the funding for the property purchase.
• Higher upfront deposit: Because of the lower LTV ratio, you should put down at least 25 to 35 percent of the purchase price. In some cases, depending on your financial situation or type of property, Portuguese banks may request an even larger deposit.
• Mortgage interest rates: Interest rates for non-residents are often slightly higher than those available to Portuguese residents. Lenders may apply this premium to offset the perceived risk of lending across borders. So, we highly recommend you compare the interest rates across multiple banks to get the best terms.
• Impact of residency status: If you become a resident in Portugal, the mortgage process becomes smoother. You may gain access to better mortgage interest rates in Portugal with higher LTV ratios, and more lenders may be willing to work with you.

Mortgage Types in Portugal for Foreign Buyers

There are various mortgage options for Portugal. Here is a quick look at the differences between fixed vs variable vs mixed rates.

Fixed-rate mortgage

Fixed-rate mortgages allow you to pay a constant interest rate for a set period, usually from 1 to 30 years. Portuguese banks often charge a premium for this stability.

The main advantage of a fixed-rate Portugal mortgage for expats is that you are fully protected from fluctuations in the Euribor. The monthly payments are more predictable and easier to manage for foreign buyers.

Variable-rate mortgage

Variable-rate mortgages rely on two factors: the Euribor reference index and the bank’s spread. Your monthly payments fluctuate over time because lenders review mortgage interest rates every 3, 6, or 12 months.

If you repay the loan early, fees are often capped at 0.5 percent of the outstanding capital for variable-rate mortgages in Portugal.

Those who seek cheap houses for sale in Portugal often opt for a variable-rate mortgage.

Mixed-rate mortgage

This mortgage type is a combination of fixed and variable rates mortgages. It offers a balance between stability and potential cost savings.

In recent years, this type of loan has become increasingly popular for new contracts and land ownership in Portugal, often accounting for well over half of new mortgages. They are a more flexible option for borrowers.

Wondering what’s new for UK nationals buying property in Portugal after Brexit? Read our guide.

Are there special mortgages available for businesses?

Yes, specialized financing options for businesses to acquire, build, or renovate commercial property are widely available in Portugal. They are often called medium- and long-term financing solutions.

The most popular options are:

• Commercial real estate credit (Crédito Imobiliário): A traditional mortgage secured by the property.
• Real estate leasing (Leasing Imobiliário): The bank buys the real estate and leases it to the company, often covering up to 100 percent of the investment value.

If you are interested in Portuguese property purchase, check our ultimate guide to Portugal real estate investment.

Portugal Mortgage Rates and Costs

Mortgage interest rates in Portugal have been steadily decreasing since 2024.

According to the latest data from Statistics Portugal (INE), since Q4 2025, the current mortgage rate in Portugal is:

• September 2025: 3.228 percent
• October 2025: 3.180 percent
• November 2025: 3.133 percent

Interest rates took a nosedive in September and slipped further through October and November. They softened by about 4.8 basis points between September and October. They also reduced another 4.7 basis points in November and eventually reached 3.133 percent.

When we compared them to the peak in January 2024 (4.657 percent), we noticed rates are now about 1.5 percentage points lower.

New mortgage rates have a different pattern. They decreased from 2.873 percent in September to 2.850 percent in October, then edged up slightly to 2.853 percent in November.

The average monthly mortgage payment in Portugal stood at €394 in both October and November. Roughly 49 percent of that amount went toward interest, while 51 percent covered the loan principal.

As rates fell, banks offered new loans at lower prices than older ones. So, most buyers found borrowing to be more affordable throughout 2025. If this trend keeps up, there is a high chance that 2026 could provide better opportunities for most buyers.

Note: These interest rates provide the market average. INE calculates an “implicit interest rate,” which represents the average cost across all existing home loans, based on the interest charged relative to the remaining loan balance.

Additional costs when getting a Portuguese mortgage

Other than the down payment and monthly costs, there are additional expenses, which can add around 8 to 10 percent to the property purchase price.

These include:

• Administrative fees: Legal expenses for hiring a Portugal real estate lawyer, valuation costs, notary and registration fees
• Property insurance and life insurance: Majority of Portuguese banks use insurance policies as loan protection
• Property taxes in Portugal: These include Property Transfer Tax (IMT) which ranges from 0-8 percent for urban residential properties, and stamp duty tax (Imposto do Selo) that costs 0.8 percent of the property price

For more details about the extra expenses, read our article about the total cost of ownership in Portugal.

Competitive mortgage rates in Portugal for Americans

Portugal offers some of the most competitive mortgage rates in Europe, particularly when compared to those in the USA. Portuguese mortgage rates currently range from 3 to 3.2 percent, depending on the loan type and the applicant profile. In the USA, mortgage rates are around 6 percent, making the cost of borrowing much higher.

See our full guide to Portugal vs USA real estate for a deeper comparison.

Getting a Mortgage in Portugal: Step-by-Step Process

Here is a step-by-step mortgage application process for foreigners:

1. Choose a property

When buying property in Portugal, it can be beneficial to consult with a buyer’s agent like Goldcrest. We provide property search services, price negotiations, and property management for long-term rentals.

2. Get a NIF

Obtain a Portuguese NIF number also known as Número de Identificação Fiscal, at a local tax office, citizen’s shop, or online via a fiscal representative.

3. Apply for mortgage pre-approval

Prepare the necessary documentation to submit the formal application for bank review. They may vary based on the type of property ownership in Portugal.

4. Submit your documents

The required documents for the mortgage application process include:

• Copy of a valid passport
• Portuguese tax number
• Proof of income (pay slips for employed or tax returns for self-employed)
• Recent bank statements
• A recent utility bill
• Recent mortgage statements
• Proof of any savings or investment income accounts
• Bank reference letters
• Property details – buying commitment or sales contract, and copies of the existing property deeds

5. Sign the mortgage deed at a Notary

After the bank approves your mortgage, you must sign the mortgage deed (Escritura de Hipoteca) in front of a Notary.

Goldcrest: How We Can Help You 

Goldcrest is a buyer’s agent that is based in Lisbon. We provide expert, impartial advice on real estate investments and how to buy property in Portugal. From scouting out the perfect property through to property acquisition, we have you covered throughout the process.

If you are looking to purchase property in Portugal, don’t hesitate to get in touch. Our team of skilled experts is available to solve all your real estate doubts, helping you with the property search and offering insightful expertise and strategic advice.

Why choose Goldcrest?

• Local knowledge: With offices located across Portugal, our presence nationwide allows us to assist you personally across the country.
• Independent service: As an independent buying agent, we do not represent any development or project. Our service is entirely tailored toward each individual client, providing you with everything you need to secure the perfect property at the best possible price. As an impartial advisor on the market, we work solely on behalf of our client and provide a service tailored to your needs and requirements.
• Streamlined process: Our real estate agents speak English and Portuguese, and our service is completely focused on providing you with a hassle-free buying experience, saving you time.
• Experienced team: Our expert real estate team has a vast local knowledge of the Portuguese property market. We have cutting-edge technology and metasearch tools at your disposal to provide full market coverage, ensuring the best investment choices and negotiated prices.
• Network of partners: We have a close network of partners, including lawyers, property management services, builders, architects, designers, and landscape gardeners, again saving you time and hassle by providing you with trusted experts in their field of work.