Mortgage in Portugal for non-residents: how much a bank will lend and what you pay on top of the deposit

Updated: 30 October 2026 · RE/MAX Extra

Portuguese banks also lend to people who don't live in the country. There is no special law on mortgages for non-residents: the general consumer rules apply, along with the limits that Banco de Portugal, the central bank, recommends to all banks. This article covers how much of the price a loan can cover, how the bank works out your debt-to-income ratio, what you pay on top of the deposit and what rights you have as a borrower. The figures come from Banco de Portugal Recommendation No. 1/2026, its Bank Customer Portal and the Stamp Duty Code.

How much the bank will lend: the limit based on property value

The main constraint is the ratio of the loan to the value of the property (LTV). A new Banco de Portugal recommendation has applied since 1 August 2026, replacing the 2018 one. The limit depends on what the loan is for, not on the borrower's nationality:

The recommendation defines a permanent home as the place where the borrower or their family keeps the settled centre of their family life. A buyer who goes on living abroad with their family doesn't meet that definition, so their ceiling is 80%. If only the borrower lives abroad and the family lives permanently in the home, the definition may formally apply: check this with the bank. If you are moving to Portugal and the property will be your permanent home, the 90% limit applies.

The value used is the lower of two figures: the purchase price or the valuation, which is carried out by a property valuer. If a property priced at €400,000 is valued at €380,000, the 80% is worked out on €380,000. That gives €304,000, so you need €96,000 of your own money, not €80,000.

Properties owned by the banks themselves used to qualify for loans of up to 100% of their value. The new recommendation has ended this concession, so the general 90% and 80% limits now apply to them too.

All of these figures are ceilings. The recommendation says outright that they don't release the bank from assessing each borrower's creditworthiness. A bank can offer less, and you only see your own terms once it has given you a quote.

Debt-to-income ratio and loan term

No more than 45% of income across all loans

The second limit is the share of income that goes on loan payments (DSTI). Since 1 August 2026 it has been cut from 50% to 45%. Here is how it is calculated:

• the top of the fraction is the monthly payments on all the borrower's loans, existing and new;
• the payment on the new loan includes a margin for a rise in the interest rate;
• the bottom of the fraction is income after tax and compulsory social contributions, with the annual figure divided by 12;
• income is proved with the latest tax return and/or income details for the previous three months.

For example, on a net income of €6,000 a month, all loan payments together may not exceed €2,700. If the borrower will be over 70 when the loan ends, the bank reduces the income it counts by at least 20% for the years concerned, unless the borrower has already retired.

Exceptions are possible: in each half-year, up to 10% of the total a bank lends may go above 45%, but the bank has to justify the decision.

Loan term: up to 40 or 35 years

With more than one borrower, the term is based on the age of the oldest. Payments must be regular and cover both capital and interest.

What you pay on top of the deposit

The loan covers part of the price, but not taxes or transaction costs. On top of the deposit you will pay:

• IMT, the property transfer tax. A non-resident pays 7.5% of the full amount on a home, except in the cases set out in law. See the article on property taxes for details;
• stamp duty on the purchase: 0.8% of the price;
• stamp duty on the loan amount: 0.6% if the term is five years or longer;
• the insurance the bank requires, the valuation, bank fees, the notary and registration, with amounts that depend on the bank and the property.

Interest on loans carries a separate stamp duty of 4%, but interest on loans to buy, build, rebuild or improve your own home is exempt (Article 7 of the Stamp Duty Code). The mortgage itself, as security, isn't charged separately when it is set up at the same time as the loan.

Example: a €400,000 house for a non-resident

This leaves out insurance, the valuation, bank fees, the notary and registration. It assumes the valuation isn't below the price and the bank has agreed to the maximum 80%.

How the process works

1. Get a tax number and open an account. The article on the NIF and bank accounts explains how.
2. Ask one or more banks for a quote. Even at this stage the bank must give you the European Standardised Information Sheet (ESIS), with all terms and costs, which makes offers easy to compare.
3. Give the bank the documents for its creditworthiness check and wait for the property valuation.
4. Get approval: the bank issues a new ESIS with the agreed terms, plus a draft contract.
5. Wait out the reflection period and sign the contract.

The offer in the ESIS binds the bank for at least 30 days. The borrower, and any guarantor, has at least seven days to reflect, and the loan agreement can't be signed during that time. Bear these periods in mind when you agree a completion date with the seller.

What a bank can and can't require

• A bank can't make the loan conditional on buying its other products.
• There are two exceptions: a current account and insurance. Even then, the bank must accept an account opened at another bank and a policy from any insurer with equivalent cover.
• A bank may offer a rate discount for taking extra products. If you later drop them, the rate can only be raised within a year of your doing so.
• Banks may not charge a fee for processing the monthly payment.

Early repayment

You can repay the loan early at any time, in part or in full. For a partial repayment you give the bank seven working days' notice, and it goes through on a regular payment date; for full repayment you give ten working days' notice. The fee is capped:

On an early repayment of €100,000, that means no more than €500 on a variable rate and no more than €2,000 on a fixed rate. No fee is charged if the reason is the death, unemployment or work relocation of one of the borrowers. The same rules apply when moving the loan to another bank. After full repayment, the bank issues a statement within 14 working days confirming the debt has been paid off. Besides the fee, the bank can only claim costs it paid on the customer's behalf to the notary, the registry office or the tax office.

What this article doesn't cover

We don't quote interest rates or a typical financing percentage for foreigners: they vary between banks, they change, and they aren't set in law or in the Banco de Portugal recommendation. Approval is the bank's decision and nobody can promise it in advance. Before you sign a promissory contract with the seller, it is worth getting a quote from the bank and checking the timing works.

The article How to buy property in Portugal as a foreigner sets out the whole purchase process.

Where to start your search

Current listings are in the RE/MAX Extra catalogue: flats in Lisbon, houses in Cascais, flats in Porto. Sale prices by municipality around the capital are in the article Lisbon areas: where to buy. If you have questions about a particular property, get in touch.

This article is for information only and is not legal or tax advice. Rates and rules change — always check official sources and a professional before a transaction.