The Complete Guide to Mortgages in Portugal for Foreign Buyers and Non-Residents (2026)

Buying a property in Portugal is an exciting investment, whether you're looking for a holiday home, planning to relocate, or purchasing a property for retirement or rental income.

One of the biggest questions international buyers ask us is:

"Can I get a mortgage in Portugal if I don't live there?"

The answer is yes.

Every year, we help clients from the United States, United Kingdom, Canada, France, Switzerland and many other countries secure competitive mortgage solutions with Portuguese banks.

In this guide, we'll explain how mortgages for non-residents work, what Portuguese banks look for, and how to choose the right financing solution for your circumstances.

Can Foreigners Get a Mortgage in Portugal?

Yes!

Portuguese banks regularly lend to foreign nationals and non-residents purchasing property in Portugal.

Whether you're:

• Living abroad

• An expat relocating to Portugal

• A retiree

• An investor

• Buying a holiday home

there are mortgage solutions available.

The exact conditions depend on several factors, including:

• Your country of residence

• Your income

• Your profession

• Your age

• The property you intend to buy

• Your overall financial profile

Because every bank has different lending criteria, comparing offers can make a significant difference.

Mortgage Options Available in Portugal

Portuguese banks generally offer three types of interest rates.

Fixed Rate Mortgage

Your monthly payment remains the same throughout the fixed period.

Ideal if you prefer certainty and predictable monthly costs.

Mixed Rate Mortgage

Currently one of the most popular choices in Portugal.

You benefit from:

• A fixed interest rate for the first 2 to 10 years (depending on the bank)

• A variable rate linked to Euribor after the fixed period ends

This option combines stability with long-term flexibility.

Variable Rate Mortgage

The interest rate follows the Euribor index plus the bank's spread.

Monthly payments may increase or decrease depending on market interest rates.

This option can be attractive when Euribor rates fall.

How Much Can You Borrow?

The amount you can borrow depends on your financial profile and the property's value.

As a general guide:

• Portuguese residents may obtain financing of up to 90%.

• Non-residents can often obtain up to 80%, although this varies by lender and applicant profile.

The bank will assess both the purchase price and the valuation and base the loan on the lower of the two values.

What Documents Will You Need?

Although requirements vary slightly between banks, you will generally need:

• Passport or national ID

• Portuguese Tax Number (NIF)

• Proof of address

• Recent payslips or proof of income

• Latest tax return

• Bank statements

• Employment confirmation or proof of self-employment

Providing complete documentation from the beginning helps speed up the approval process.

What Do Portuguese Banks Evaluate?

Portuguese lenders consider much more than your salary.

They also analyse:

• Debt-to-income ratio

• Employment stability

• Savings available for the down payment

• Existing financial commitments

• Credit history

• Age

• Currency in which you receive your income

A strong financial profile often results in better financing conditions.

Fixed, Mixed or Variable: Which Is Best?

There is no universal answer.

It depends on your priorities.

Choose a Fixed Rate if you value predictable monthly payments.

Choose a Mixed Rate if you want several years of stability while keeping future flexibility.

Choose a Variable Rate if you're comfortable with interest rate fluctuations and expect rates to decrease over time.

Understanding the advantages and risks of each option is essential before making a decision.

Additional Costs to Consider

Buying a property involves more than the purchase price.

You should also budget for:

• Property Transfer Tax (IMT)

• Stamp Duty

• Notary and registration fees

• Property valuation

• Home insurance

• Mortgage arrangement costs (where applicable)

• Mortgage Life Insurance

Knowing these costs in advance helps avoid unexpected surprises.

Why Compare Several Banks?

Many buyers contact only one bank.

This is often a costly mistake.

Each Portuguese bank has its own:

• Lending criteria

• Interest rates

• Maximum financing

• Insurance requirements

• Approval process

Comparing several lenders can significantly improve the conditions you receive.

Why Work With a Mortgage Broker?

Navigating a foreign banking system can be challenging.

An experienced mortgage broker helps you:

• Compare multiple banks

• Prepare your application

• Reduce unnecessary delays

• Understand the different mortgage products

• Negotiate better financing conditions

• Manage the process from start to finish

At MaxFinance Care, our service is provided at no cost to the client, and we accompany you throughout the entire mortgage process.

Frequently Asked Questions

Can Americans get a mortgage in Portugal?

Yes.

Portuguese banks regularly finance buyers from the United States, subject to the bank's lending criteria.

Can UK residents still obtain mortgages after Brexit?

Yes.

British citizens continue to purchase property in Portugal and have access to mortgage financing.

Can pension income be accepted?

Yes.

Many Portuguese banks accept pension income, provided it is stable and can be properly documented.

Can rental income be considered?

In many cases, yes.

Banks may take rental income into account, depending on its stability and supporting documentation.

What is the maximum mortgage term?

The maximum term depends on the bank and the applicant's age.

Many lenders require the mortgage to end by around the borrower's 75th birthday.

Final Thoughts

Buying property in Portugal doesn't need to be complicated.

With the right advice, proper preparation and access to multiple lenders, obtaining a mortgage can be a smooth and straightforward process.

Every buyer's situation is different, which is why comparing mortgage solutions and receiving personalised guidance is so important.

If you're considering purchasing property in Portugal, we'd be delighted to help.

Contact MaxFinance Care today for a free mortgage assessment and discover which financing options are best suited to your needs.