Updated: August 25, 2026

People applying for mortgage in Portugal Portugal’s golden beaches, solid rental returns, and warm climate make it a strong choice for property investment.

Mortgages in Portugal are loans that make it possible for people to buy properties without paying the full price up front. Non-residents, US nationals, and EU citizens can all apply for a Portuguese mortgage.

In this guide, we’ll walk you through the steps of getting a mortgage in Portugal as a non-resident, from the mortgage types, rates, eligibility criteria, and more.

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Getting a Mortgage in Portugal: Key Takeaways

  • Portugal is mainly a variable-mortgage rate market, indexed to Euribor alongside a bank spread.
  • The average variable rate mortgage in Portugal is 2.8% for new mortgage contracts.
  • The 12-month Euribor is 2.993%, and the 6-month Euribor is 2.772%, as of August 2026.
  • The average loan-to-value (LTV) is 65%–75% for non-residents and roughly 80%–90% for Portuguese residents.
  • The Portuguese NIF number is a mandatory document, required before you start the mortgage process.
  • Most lenders require life insurance as well as home or building insurance.
  • The repayment term is often up to 30 years, though some banks offer 40 years for residents.

Can foreigners get a mortgage in Portugal?

Yes, foreigners can obtain a mortgage in Portugal without holding Portuguese residency or citizenship. There are many banks in Portugal that can provide mortgages to non-resident foreigners, such as Santander, Novobanco, and Millennium BCP, to name a few.

However, Portuguese banks have stricter conditions and lending requirements for non-residents, as they are considered to have a higher risk profile than residents who earn income in Portugal.

The main difference is that non-residents often require a larger down payment, about 20% to 35% of the property’s value, whereas legal Portuguese residents need about 10% to 20% in many cases.

Feature

Non-residents

Portuguese tax residents

Loan-to-Value (LTV)

Often 65%–75%, depending on the lender; investment properties capped at 60%

Often 80%–90%

Minimum down payment

Around 20%–35%

Around 10%–20% for eligible primary residences

Max loan term/age limit

Often up to 30 years (varies case by case)

Up to 40 years for eligible younger borrowers (varies case by case)

Interest rate/spread

Often higher, depending on the profile and foreign currency risk

Often lower with competitive spreads available, depending on the borrower profile

How Mortgage Works in Portugal

Portuguese mortgages work very similarly to those in most of Europe. The bank lends you a percentage of the purchase price or the property’s value (whichever is lower) that acts as collateral until you pay back the full amount.

Most monthly mortgage payments in Portugal include:

  • Principal: The actual money you borrowed to pay down the loan balance.
  • Interest: The fee the lender charges you for borrowing the money.
  • Insurance: Portuguese mortgage borrowers require life insurance with property insurance, or multi-risk insurance.

Portugal’s mortgage market is overseen by the Banco de Portugal (Bank of Portugal). Unlike other European countries, mainly France or Germany, where fixed-rate borrowing is the norm, Portugal focuses more on variable-rate loans, also known as crédito à habitação. These mortgages in Portugal are indexed to the Euribor (Euro Interbank Offered Rate), after which the bank applies its margins.

Here are the Euribor rates as of late August 2026:

Euribor

Rate

1-week Euribor

2.180%

1-month Euribor

2.222%

3-month Euribor

2.537%

6-month Euribor

2.772%

12-month Euribor

2.993%

 

Source: Euribor-rates.eu, (24 August 2026)

The majority of Portugal’s variable mortgages are often indexed to a 6-month or 12-month Euribor benchmark interest rate.

Your interest rate = Euribor + bank spread

The bank spread (diferencial) is negotiable, which means a financially strong buyer, with a stable income, life insurance, and low debt, often has a higher chance of competing on the spread.

The overall cost of a mortgage is shown through the TAEG (Taxa Anual de Encargos Efetiva Global) and the MTIC (Montante Total Imputado ao Consumidor), which shows the total amount payable over the full loan term. Both of them are included in the bank’s official mortgage offer.

Tip: You don’t need to be physically present in Portugal to get a mortgage as a foreigner. You can appoint a lawyer or a fiscal representative with the Power of Attorney (procuração) to act on your behalf.

Eligibility Criteria for Mortgages in Portugal for Non-Residents

Getting a mortgage in Portugal for foreigners is a relatively straightforward process. There are no specific legal requirements that affect non-residents. EU citizens and non-EU nationals have the same right to qualify for a mortgage as a Portuguese resident.

To apply for a Portuguese mortgage as a non-resident, you often need to meet these basic requirements:

  • A NIF (Número de Identificação Fiscal) — The NIF in Portugal is your personal tax identification number that you will use for all fiscal activities.
  • A Portuguese bank account — Lenders require a local bank account, which you can open in person or online. Many international banks in Portugal offer specific non-resident accounts (conta de não residente).
  • Proof of stable income — You can use pay slips, tax returns, bank statements, registered business, pension income, among others.
  • A minimum deposit — The baseline minimum mortgage down payment is about 30%, which corresponds to the 70% Loan-to-Value ratio. However, every borrower is different, and some major banks can offer more flexible LTVs for a non-resident in Portugal.
  • An acceptable debt-to-income ratio (DTI) — Banks often prefer to see a ratio of 30%–35% of monthly net income across all combined debt commitments, especially for non-residents.
  • Age limits at loan maturity — Most banks require the borrower to pay off the loan by the age of 70.
  • No bad credit history — Unlike the US, Portugal does not rely on a single three-digit credit score, such as FICO (Fair Isaac Corporation). Instead, lenders check your overall creditworthiness, including your income, expenses, existing debts, and your credit-liability history in databases such as the Banco de Portugal‘s Central Credit Register.

Mortgage Types in Portugal for Foreign Buyers

There are three main mortgage types in Portugal: Fixed-rate, variable-rate, and mixed-rate mortgages.

Mortgage type

Interest rate structure

Fixed-rate mortgage

Fixed interest rate for a set period (often 1–30 years); higher interest rates, but stable and unaffected by Euribor

Variable-rate mortgage

Based on Euribor + bank spread; rates are reviewed every 3, 6, or 12 months, so payments fluctuate over time.

Mixed-rate mortgage

Fixed rate for an initial period (e.g., 5–15 years), then switches to a variable rate linked to Euribor

 

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.

As of August 2026, the average variable mortgage rate in Portugal is 2.80%. 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-rate 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

Portugal has one of the lowest mortgage interest rates in the Eurozone.

The average implicit interest rate on total housing loans in Portugal stood at 3.135% in July 2026, according to Statistics Portugal (INE — Instituto Nacional de Estatística). When it comes to contracts closed in the previous three months, the interest rate jumped from 2.853% to 2.910%

The latest data by the Central Bank of Portugal showed that the average interest rate on new mortgage lending increased by 0.04 percentage points in May, reaching a staggering 2.89 percent. Despite the increase, Portugal remains the country with the fourth-lowest mortgage interest rate among Eurozone members.

GC-ICON-57 Additional costs when getting a Portuguese mortgage

Besides the monthly repayments and the down payment, here are additional expenses to consider when getting a mortgage in Portugal:

  • Application costs: €200–€400
  • Valuation fees: €150–€300
  • Notary fees: €500–€1,000
  • Legal costs: €2,000–€5,000
  • Stamp duty on loan: 6% of the mortgage amount
  • Setting up a Portuguese bank account: Often free (or €250–€500 for online banking in some cases)
  • Life insurance: Depends on the loan and age

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

GC-ICON-55 Competitive mortgage rates in Portugal for Americans

Portugal offers some of the most attractive mortgage rates in Europe, particularly when compared to those in the USA. Variable Portuguese mortgage rates currently stand at 2.8% for new contracts, depending on the applicant profile.

In the USA, mortgage rates are around 6.65%–6.75% for 30-year fixed mortgages and around 5.95%–6.15% for 15-year fixed mortgages. If you also want to compare property prices, check our article on Portugal vs USA real estate.

When comparing getting a mortgage in Portugal vs the UK, Portugal also offers attractive rates. As of August 2026, the average standard variable rate (SVR) stands at 7.13%. For 5-year fixed rates, it is 5.61%, or 5.59% for a 2-year fixed rate, according to Forbes.

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How much can I borrow for a mortgage in Portugal?

In Portugal, residents can often borrow up to 80–90% LTV, while non-residents can borrow roughly 65%–75% LTV. However, these are just rough estimates and vary based on the borrower’s profile.

Here’s an example:

  • Property price: €450,000
  • Deposit: 30%
  • Interest rate: 8%
  • Loan term: 28 years

For a non-resident buyer with a 70% Loan-to-Value (LTV), who took out a €315,000 loan, the monthly payment would be €1,461. By the time they repay the loan, the total amount would be €438,361.

Calculate your mortgage in seconds with our Portugal mortgage calculator

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How long does it take to get a mortgage approval in Portugal?

Once your mortgage is approved in Portugal, you can perform a formal property valuation, sign the final deed (Escritura), and register the property with the Portuguese land registry (Registo Predial).

For non-residents, the process can take anywhere from 6 to 10 weeks, though every case is different. The Notary and land registry are separate from the bank, so these steps normally work independently or with the help of a Portugal real estate lawyer.

How to Get a Mortgage in Portugal as a Foreigner: Step-by-Step

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. With in-person applications, you can get a NIF the same day, or in 5 to 10 business days when applying online.

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.

Tips for Expats Seeking a Portuguese Property Mortgage

  • Use a mortgage broker in Portugal: Mortgage brokers work with multiple banks and lenders, so they can compare interest rates, fees, and terms across the entire market.
  • Consult with property experts: Hire a buyer’s agent or a real estate agent in Portugal to source off-market properties and competitive prices.
  • Do your research: Use all the online sources at your disposal, such as expat forums, government portals, and tools like our Portugal mortgage calculator.

Goldcrest: How We Can Help You 

Goldcrest is the first buyer’s agent in Portugal. 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. 

Unlike traditional real estate agents in Portugal who represent the seller, we are dedicated exclusively to protecting the buyer’s interests. 

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.
  • 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. We can also help you buy property remotely.
  • 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.

Frequently Asked Questions about Mortgages in Portugal

The main types of mortgages in Portugal are:

  • Variable-rate mortgages tied to the Euribor plus a bank spread.
  • Fixed-rate mortgages, where your interest rate and monthly payments stay exactly the same for the entire loan term.
  • Mixed-rate mortgages, which start with fixed interest rates for a specific period before switching to standard variable rates for the rest of the loan.

As of August 2026, the average Portuguese mortgage rate for new variable-rate mortgages is 2.8%. However, these rates are different for every borrower and depend on your resident status, income, and risk profile.

Getting a mortgage in Portugal starts with a Portuguese tax number (NIF), choosing a bank or a mortgage broker, and obtaining a pre-approval, provided that you meet all the basic requirements. As a non-resident, you can expect an 65%–75% LTV, since residents can often borrow more (80%–90%).

The Euribor rates affect how much you pay on a variable-rate mortgage in Portugal. Your mortgage rate is Euribor, plus your bank’s spread. For example, if 6-month Euribor is 2.772% and your bank charges a 1% spread, your mortgage rate would be 3.772%. If the Euribor goes up, so do your mortgage rates and the monthly payments.

The key benefit of taking out a mortgage in Portugal is that mortgage lenders can offer valuable services and benefits that include bank property valuation in Portugal to take place, tailored interest rates, and favorable repayment terms.

Yes, foreigners can get a mortgage in Portugal without restrictions. This includes UK and US citizens. If you are buying property to rent out for long or short-term rentals in Portugal, it is possible to get a mortgage. A mortgage lender will only deem your application unsuccessful if you do not meet the eligibility criteria.

Yes, mortgages in Portugal for UK residents are possible. Both Portuguese residents and non-residents can apply for mortgages in Portugal.

Conditions vary, but often include a loan-to-value ratio of 65–75 percent, with a down payment of 20 to 35 percent typically required for non-residents. The mortgage term is usually up to 30 years.

Banks have stricter policies and mortgage rates in Portugal for non-residents. But these factors don’t deter EU citizens, because mortgage options for Portugal property buyers are more accessible than in some other Western European countries like France, Germany, and the Netherlands.

Yes, retirees can get a mortgage in Portugal as long as they can demonstrate a stable income or pension income. However, it gets more difficult to find a bank to offer a mortgage after the maximum age of 70 years old.