Whether seeking a vacation home or a real estate investment, Portugal entices would-be buyers with attractive visa programs and favorite tax initiatives.
However, navigating the cost and availability of home mortgages in Portugal can be as challenging as it is exciting for foreign buyers. Understanding the mortgage landscape is crucial.
Foreign buyers often find mortgage options appealing due to competitive interest rates and relatively flexible terms. Yet, they must also contend with high property prices in popular areas and specific lending requirements.
Here, we’ll offer insight into how to effectively manage this important aspect of purchasing property in Portugal.
Getting a Mortgage in Portugal: The Expert Outlook
As a global marketplace for international real estate with more than 65,000 homes for sale in Portugal, JamesEdition has the inside edge on mortgage options for foreign buyers.
We have partnered with local expert Your Property Advisor (YPA), specialists in the Portuguese property market, and the company’s co-founder, Gonçalo Roxo, who has more than a decade of experience working in Portugal’s real estate sector.
Gonçalo RoxoCo-founder of Your Property Advisor (Portugal)Your Property Advisor is a real estate consultancy that sells properties without maintaining a portfolio. This approach gives us the freedom to search for all available properties across Portuguese territory, providing a significant advantage for buyers. In a continuously expanding ‘seller’s’ market, a real estate consultancy that seeks to protect buyers' interests serves as a valuable solution to meet market needs.
Are There Mortgage Options for Foreigners?
We outlined the housing prices in Portugal in Price Report 2024: How Much Does a House Cost in Portugal? Best Places to Buy, but let’s delve into the mortgage options for foreign buyers, residents and non-residents.
First things first. Are there mortgage options for foreigners hoping to buy real estate in Portugal?
Yes, there are mortgage options for foreigners in Portugal, whether you’re looking to buy a home or invest in the real estate market from abroad. The terms and amounts you can borrow depend on your residency status and the purpose of your property purchase.
In Portugal, homeownership is common, with about 78% of residents owning their property and 38% having a mortgage. This high homeownership rate reflects mortgage availability and accessibility, which are open to both residents and non-residents.
Portugal offers a variety of bank options for foreigners. The country’s financial institutions are used to working with expat clientele.
Non-resident foreigners can obtain mortgages in Portugal, though having Portuguese residency can simplify the process and offer better terms.
Non-residents typically face a lower loan-to-value ratio compared to residents.
Expats with Portuguese residency can borrow at a higher loan-to-value ratio and have access to a wider range of lenders and deals, often benefiting from more favorable terms and conditions.
Interest Rates and Deposit
Overall, Portugal offers a variety of mortgage options for foreigners, making it feasible to purchase property whether you’re planning to reside in the country or invest from afar.
Mortgage interest rates in Portugal vary widely, from as low as 1% to as high as 8%, depending on factors such as property value, deposit size, financial history, and mortgage type.
For the latest rates, it’s advisable to check with individual banks or consult a mortgage broker.
The required deposit typically ranges from 20% to 30% of the property’s purchase price for non-residents, and may be lower for residents.
If you take out a loan, there are extra costs to consider. Read our detailed overview of the full cost of buying property in Portugal, or review a shorter version below.

Additional Fees When Taking a Mortgage
Bank Fees
Costs: €1,000
Bank fees for valuation and application processing typically amount to around €1,000.
Stamp Duty Over Loan
Costs: 0.6% on the loan amount
There is a Stamp Duty Over Loan (Imposto do Selo) of 0.6% on the loan amount.
This is a fee that a buyer pays in addition to the 0.8% Stamp Duty applied to the entire property value.
For reference, you can get a loan of €225,000 that covers 90% of the sale price of the house (€250,000). Thus, you will pay a Stamp Duty of 0.6% (€1,350) on the loan amount.
In addition, you will be required to pay a 0.8% Stamp Duty on the total sale price of €250,000. Our Portugal guide comprehensively covers the entire buying process.
Mortgage Registration Fee
Costs: €375
You must pay an additional mortgage registration fee of €375.
If you take out a loan, it is necessary to register the mortgage on the property using the “Casa Pronta” service. The procedure can be completed online or at a Casa Pronta Counter.

Life Insurance and Multi-Risk Insurance
Costs may vary
Banks require payment of life insurance to cover the death of the contract holder; the cost varies based on individual circumstances. Multi-risk insurance is also necessary, with costs depending on the property’s value.

Conclusion
The cost of home mortgages in Portugal presents a mixed landscape for prospective buyers.
For foreign buyers in Portugal, the process is generally straightforward but includes additional costs and paperwork.
The country offers attractive opportunities, yet careful financial planning and local market understanding are essential for navigating the complexities of purchasing a home here.
Explore the buying process with our comprehensive 360-degree guide to Portugal: