Portugal continues to stand out as one of Europe’s most attractive destinations for international property buyers. From investors seeking long-term returns to families looking for a new lifestyle by the sea, the country remains firmly on the radar of those considering a move or investment abroad.

For many of these buyers, one practical question comes up early in the process: is it possible to obtain a mortgage in Portugal as a foreign buyer?

The answer is yes. Portuguese banks do provide mortgage financing to international buyers, including both residents and non-residents. However, the conditions can vary significantly depending on the buyer’s residency status, income profile and country of origin.

“Many international buyers are surprised to discover that obtaining a mortgage in Portugal is often more straightforward than they initially expect. The key is understanding how the process differs depending on whether you are a resident or a non-resident,” says Marta Salgado, Sales Director at Athena Advisers Portugal.


Residents and non-residents: different rules, different expectations

For foreign nationals who are tax residents in Portugal, hold a Portuguese tax number, known as a NIF, and can provide proof of tax residency, the mortgage process is broadly similar to that of a Portuguese citizen.

For non-residents, however, banks tend to apply more conservative lending criteria. This is largely due to the added complexity involved in assessing income from abroad, enforcing guarantees outside Portugal and managing potential default situations across jurisdictions.

In practical terms, this does not prevent non-residents from accessing finance, but it does mean that preparation becomes particularly important.


What non-resident buyers should expect

Generally, Portuguese banks may finance up to 80% of the property’s value for non-resident buyers. For applicants living outside the European Economic Area, this level can sometimes be reduced to around 70% to 75%, meaning buyers should be prepared to provide a minimum deposit of between 20% and 30%.

Another key factor is the debt-to-income ratio. Monthly mortgage payments, together with any other financial commitments, should usually not exceed 50% of the household’s net monthly income. This is one of the main criteria banks use to assess whether the buyer can comfortably support the loan over time.

Mortgage terms can extend up to 30 years, depending on the buyer’s age and the policy of each bank. Interest rate spreads for non-residents are typically slightly higher than those offered to residents, although the gap has narrowed following the stabilisation of Euribor throughout 2025. Some lenders currently offer spreads starting from 0.60%.

Buyers should also bear in mind that opening a Portuguese bank account is required to formalise the mortgage. In many cases, this can now be done remotely, either through digital channels or via branches in the client’s country of residence.


Documentation and transaction costs

The documentation required by Portuguese banks is fairly standard, although it must often be gathered across different countries and tax systems. Buyers are usually asked to provide proof of income, such as tax returns, payslips or financial statements for self-employed applicants, along with recent bank statements, a Portuguese NIF, a valid identification document and proof of address in their country of residence.

“The financing itself is rarely the biggest obstacle. Being properly prepared with the right documentation from the outset can significantly speed up the process,” Marta Salgado explains.

International buyers should also be aware of the additional costs involved in purchasing property in Portugal. These can include IMT property transfer tax, Stamp Duty, bank valuation fees, notary and deed costs, land registration, insurance and bank charges.

It is also important to note that certain tax benefits and public support measures available in Portugal, including some IMT exemptions, apply exclusively to Portuguese tax residents. Non-resident buyers should therefore factor in the standard transaction costs from the beginning.


Preparation is increasingly important

In a competitive property market, understanding financing options before making an offer can make a significant difference. Many international buyers now begin the mortgage assessment process before selecting a property, allowing them to understand their borrowing capacity and move more confidently when the right opportunity appears.

This is especially relevant in areas where demand from international buyers remains strong, including Lisbon, Porto, Comporta, the Algarve and other lifestyle-driven destinations. In these markets, being financially prepared can strengthen a buyer’s position and reduce delays between offer, reservation and completion.

“Buying property in another country inevitably involves unfamiliar procedures. Having experienced professionals who understand both the Portuguese market and international buyers’ expectations helps make the process considerably smoother and more transparent,” says Marta Salgado.

Ultimately, buying well in Portugal begins long before the deed is signed. For international buyers, understanding the banking process, preparing documentation in advance and seeking the right local guidance can turn a promising opportunity into a more secure and informed decision.