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Buying a property in Portugal does not necessarily mean paying the full purchase price upfront. For many international buyers, financing part of the purchase with a Portuguese mortgage can be an important part of their property strategy.
Whether you are planning to move to Portugal permanently, purchase a holiday home or invest in a property, Portuguese banks are generally open to lending to foreign buyers. However, the amount you can borrow, the documentation required and the conditions offered will depend on several factors, including your residency status, income, age and financial profile.
Here is what international buyers should know about getting a mortgage in Portugal in 2026.
Can foreigners get a mortgage in Portugal?
Yes. Both residents and non-residents can apply for a mortgage with a Portuguese bank.
The process is broadly similar for Portuguese and international buyers, but banks will usually require additional documentation from applicants whose income and financial assets are based outside Portugal.
Your financial situation will be assessed carefully, including:
- Your income and employment situation
- Existing loans and financial commitments
- Your age and the proposed mortgage term
- Your credit history
- The value and type of property you intend to purchase
Different banks can also have different lending criteria, which means that the amount available to one buyer may vary depending on the bank and the overall structure of the application.
How much can you borrow?
One of the most important factors is the loan-to-value ratio, commonly known as LTV.
This represents the percentage of the property’s value that the bank is prepared to finance.
As a general indication:
- Residents may be able to borrow up to approximately 90% of the property’s value, depending on the purpose of the purchase and their financial circumstances.
- Non-residents will generally be expected to provide a larger deposit, with financing often reaching around 65% to 75% of the property’s value.
For example, if you are purchasing a property for €500,000 and the bank agrees to finance 70%, you would need to contribute €150,000 towards the purchase price, in addition to the taxes and other costs associated with buying the property.
It is also important to remember that the bank’s valuation may differ from the agreed purchase price. The amount you can borrow will usually depend on the bank’s assessment of the property, not simply the price agreed with the seller.
How long can a mortgage last?
Mortgage terms in Portugal can extend up to 40 years, although the maximum available term will depend on the age of the applicants and the lending criteria of the bank.
In many cases, banks will expect the mortgage to be repaid before the borrower reaches a certain age, often around 75 years old, although this can vary.
For international buyers, this means that age can have a direct impact on the maximum mortgage term and, consequently, on the monthly repayments.
What documents will you need?
Although requirements vary from bank to bank, international buyers will typically be asked to provide:
- Date of birth of all applicants
- A completed mortgage application
- A copy of your passport
- A Portuguese tax number, known as a NIF
- Proof of your current address
- Bank statements from the previous three months
- Details of your income, investments and existing financial commitments
- Your most recent income tax declaration
- An employer’s letter confirming your position, length of employment and gross annual income
- Recent payslips
- A credit report or equivalent documentation from your country of residence
Once you have identified a property, the bank will also require information about the property itself, which may include:
- The property’s registration and tax documentation
- The caderneta predial
- The land registry certificate
- Floor plans, where applicable
- Information required to carry out the bank’s valuation
Having your documentation prepared in advance can make the process considerably smoother, particularly for buyers applying from outside Portugal.
The mortgage process step by step
1. Initial assessment or decision in principle
Before making an offer on a property, it can be useful to understand how much you may be able to borrow.
Based on your income, financial commitments and supporting documentation, a bank or mortgage specialist can provide an initial assessment of your borrowing capacity.
This can help you define a realistic budget before beginning your property search.
2. Finding the right property
Once you have identified a property, the mortgage application can move forward.
At this stage, the bank will review both your financial profile and the property you intend to purchase.
3. Property valuation
The bank will arrange an independent valuation of the property.
This is an important stage of the process, as the valuation helps the bank determine the amount of financing it is prepared to provide.
The valuation can take several weeks, depending on the bank and the circumstances of the transaction.
4. Formal mortgage approval
Once the financial assessment and property valuation have been completed, and assuming the application meets the bank’s requirements, the bank can issue its formal mortgage offer.
Before accepting, it is important to understand the full conditions of the loan, including the interest rate, repayment structure, associated fees and any insurance requirements.
5. Completion of the purchase
Once all legal and banking requirements have been completed, the mortgage and property purchase can proceed to completion.
The final documentation is signed, the bank releases the agreed funds and ownership of the property is transferred to the buyer.
A mortgage should be part of your property strategy
Getting a mortgage in Portugal is not simply about finding the highest amount a bank is willing to lend.
For international buyers, it is also important to consider how the mortgage fits into the overall cost of the purchase, including property transfer taxes, stamp duty, legal costs and any future financial commitments.
Interest rates, lending criteria and bank requirements can also change, so obtaining professional advice before committing to a purchase is always recommended.
At Portugal Property Advisors, we represent property buyers and help international clients navigate the Portuguese property market with independent guidance throughout the buying process. We can also introduce clients to trusted mortgage specialists who can assess the available financing options based on their individual circumstances.
Buying a property in Portugal should start with a clear understanding of your budget. Knowing your financing options before making an offer can give you greater confidence and help ensure that the property you choose is the right one for both your lifestyle and your financial plans.