Why Invest in Portuguese Real Estate?
Portugal continues to be a hot real estate market, attracting foreign buyers thanks to:
- Stable and growing housing market
- High rental demand in cities and tourist regions
- Residency options via property investment
- Mild climate and quality of life
Whether you’re buying for personal use, relocation, or investment, Portugal offers excellent value, particularly compared to other EU countries.
Thinking of buying an apartment in Portugal? Discover how foreigners can get a local mortgage, loan conditions, and the best banks to work with.
Can Foreigners Get a Mortgage in Portugal?
Yes—non-residents and foreigners are allowed to buy property and apply for mortgages with Portuguese banks. In fact, it’s quite common for international buyers to finance up to 70% of the property’s value through a local mortgage.
This applies to:
- EU and non-EU citizens
- Retirees, digital nomads, and investors
- Individuals with or without permanent residency
Banks will, however, assess your income, creditworthiness, and source of funds.
ypical Mortgage Conditions for Non-Residents
Here are average conditions foreigners can expect:
| Mortgage Term | 5 to 30 years |
|---|---|
| Loan-to-Value (LTV) | Up to 70% for non-residents |
| Interest Rates | From 3.5% to 5.5% (variable/fixed) |
| Down Payment | Typically 30% (more for luxury) |
| Approval Time | 4 to 8 weeks |
| Minimum Loan | €50,000+ |
Note: Rates may vary based on market conditions and personal profile.
Best Banks Offering Mortgages to Foreigners
These banks are known for working with expats and international buyers:
Top Banks:
- Millennium BCP – Great online portal for foreigners
- Santander Totta – Widely used by EU investors
- Novo Banco – Flexible terms for non-residents
- Banco BPI – Strong English-speaking support
- Banco CTT – Digital-focused, simple fees
Many foreign buyers also work through mortgage brokers like Idealista Mortgages or PrivateGate to simplify the process and compare offers.
Costs to Expect When Buying Property
Besides your down payment, plan for transaction and legal fees, typically adding 7–10% to the purchase price.
Estimated Costs:
- IMT (property transfer tax): 0–8% depending on value
- Stamp duty (Imposto de Selo): 0.8%
- Notary & registration fees: ~€1,000
- Legal assistance: ~€1,500–€3,000 (recommended)
- Bank fees/appraisal: ~€500–€1,000
Key Areas to Buy Apartments in Portugal
Popular regions for apartment buyers include:
- Lisbon: Urban, high demand, strong rental yields
- Porto: Cultural hub with growing investment opportunities
- Algarve: Sunny, touristic, ideal for retirees and short-term lets
- Cascais & Estoril: Affluent suburbs with seaside charm
- Braga & Aveiro: Affordable and growing among young professionals
Tip: If you’re buying to rent, focus on areas with university access, tourism, or coworking hubs.
Final Thoughts & Helpful Links
Portugal offers a foreigner-friendly real estate market with solid mortgage options from local banks. With the right financial profile and documents, you can secure favorable terms and own a piece of Portugal’s charm.
Next Steps:
- Get your NIF number
- Contact a mortgage broker or bank
- Visit properties and schedule appraisals
- Secure legal support for due diligence
Admin