If you live in the United States, United Kingdom, Canada or another country and are thinking about buying a property in Portugal, you may be wondering whether you can get a Portuguese mortgage without living here.
The answer is yes.
Non-residents can apply for a mortgage in Portugal. The amount you can borrow will depend on your income, existing financial commitments, savings, age, the property and the bank assessing your application.
Here is what you need to know.
Can foreigners get a mortgage in Portugal?
Yes.
Portuguese banks can provide mortgages to people who live and earn their income abroad.
The bank will usually look at:
- Your income;
- Your employment situation;
- Your existing loans and monthly payments;
- Your age;
- Your savings;
- The property you want to buy;
- The country and currency in which you earn your income.
You do not need to be a Portuguese resident before starting the mortgage process.
How much can a non-resident borrow?
For foreign and non-resident buyers, Portuguese banks generally finance around 70% to 80% of the property value.
The exact percentage depends on the bank and your financial profile.
This means you should expect to use some of your own funds towards the purchase.
There is also an important detail: the bank considers both the purchase price and its own property valuation. The financing is calculated using the lower of the two values.
Example
Imagine you want to buy a property for €300,000.
If the bank also values the property at €300,000 and finances 70%, the calculation would be:
- Property price: €300,000
- Mortgage: €210,000
- Your own funds: €90,000
For this example, we are using 70% financing, although some banks may finance up to around 80% depending on the case.
If the bank values the property below the purchase price, you may need to use more of your own money.
You should also keep in mind that the deposit is not the only cost involved in buying a property in Portugal. Taxes, registration costs, bank fees and other purchase-related expenses should also be included in your budget.
Can you use income earned in the US, UK or Canada?
Yes.
You do not need to earn your salary in Portugal to apply for a Portuguese mortgage.
Banks can assess income earned abroad, including income received in:
- US dollars;
- British pounds;
- Canadian dollars;
- Euros;
- Other currencies.
What matters is whether your income is stable and whether you can afford the mortgage alongside your existing financial commitments.
For example, imagine two people both earn the equivalent of €5,000 per month.
One has no existing loans.
The other already pays €1,200 every month towards a car loan, mortgage and other credit.
Even though they earn the same amount, the bank may not offer them the same mortgage amount.
This is because the bank looks at both your income and your existing monthly debt payments.
What documents will you need?
The exact documents can vary between banks, but you will normally need to prove your identity, income and financial situation.
You may be asked for:
- Passport or identification document;
- Portuguese tax number (NIF);
- Payslips from the last 3 months;
- Employment contract or employer confirmation;
- Bank statements from the last 3 months;
- Tax returns;
- Credit report;
- Proof of savings for the down payment.
If you are self-employed or own a business, additional financial documents may be required.
Preparing these documents early can help make the application process easier.
How does the mortgage process work?
Although every case is different, the process is generally divided into a few main steps.
1. Submit your documents for financial assessment
Your documents are sent to the banks to assess your income, existing debts, savings, employment situation and borrowing capacity.
2. Receive and compare bank simulations
After reviewing your financial profile, the banks provide different simulations showing the financing amounts, interest rates, monthly payments and conditions they may be able to offer.
3. Choose a bank and apply for approval
After comparing the options, you choose which bank to proceed with and the application is submitted for formal approval. The bank may approve or decline the application depending on its assessment of your financial situation.
4. Property valuation
Once the mortgage is approved and you have chosen a property, the bank arranges an independent valuation.
5. Final mortgage documents
After the valuation, the bank issues the final mortgage offer confirming the approved amount and conditions.
6. Complete the purchase
Once all documents and legal requirements are in place, the deed can be scheduled and signed.
Why should you compare different Portuguese banks?
Because not every bank will assess your situation in the same way.
One bank may be willing to lend you more, while another may offer a better interest rate or conditions that are more suitable for someone living abroad.
When comparing mortgages, you should look at more than just the interest rate.
It is also important to compare:
- How much the bank is willing to lend;
- The mortgage term;
- The estimated monthly payment;
- Fixed, variable or mixed interest rate options;
- Bank fees;
- Insurance requirements;
- Other products required by the bank.
Comparing different banks can therefore make a real difference to the financing available to you.
Can you start the mortgage process from abroad?
Yes.
You do not normally need to travel to Portugal just to start assessing your mortgage options.
If you live in New York, London, Toronto or anywhere else abroad, you can begin by providing your financial information and documentation remotely.
This allows you to understand:
- how much you may be able to borrow;
- how much of your own money you may need;
- which banks may be suitable for your profile;
- what property budget makes sense for you.
Knowing this before seriously looking for a property can help you avoid wasting time on homes that are outside your realistic budget.
Mortgage applications are subject to the lender’s assessment and approval.
