This article will cover mortgages in Portugal for non-residents or foreigners.
Are you wondering if it’s possible to use mortgages in Portugal as a non-resident to purchase a property?
Portugal has an outstanding reputation for welcoming ex-pats, and the conditions for getting mortgages are somewhat straightforward.
In general, mortgages are the most common way to finance a property investment in Portugal.
It is advisable to start the mortgage process as early as possible, even if you are not totally sure of the kind of property you want to buy.
This way you streamline your property search and make quicker decisions on prices with the seller, and it may also help you negotiate the price as it will show you are a serious buyer.
Getting a mortgage is a great option, not only for financing the entire property purchase.
But there’s one thing you need to know.
If you choose the real estate investment route, you cannot apply for a mortgage in Portugal to finance the property purchase.
The Portuguese financial sector was hit hard by the financial crash of 2008, and more than a decade on, this still affects how lenders approach mortgages in Portugal for non-residents.
For this reason, it’s better to apply for a mortgage in your country of origin to finance your investment.
The minimum threshold is €280,000 for a property in one of Portugal’s low-density areas.
If your dream property is priced beyond the minimum golden visa threshold, then getting a mortgage in your home country will allow you to top up your funds to the required level.
You’ll still be able to secure that all-important Portuguese residency permit and start your journey to Portuguese citizenship.
Getting a mortgage in Portugal as a foreigner can be surprisingly easy.
Even if you’re a non-resident, you’ll find many opportunities to secure a mortgage from Portuguese banks.
But, as with any bureaucratic process, the devil is in the details. To avoid wasting time and frustration, it’s essential to go into the process with clarity on what’s involved.
FAQs - Mortgages in Portugal for non-residents
Can a British citizen get a mortgage in Portugal?
Yes, British citizens can easily get a mortgage in Portugal. There are no restrictions by nationality.
Can retirees get a mortgage in Portugal?
Yes. Retirees can get a mortgage with proof of sufficient regular pension income.
What’s the loan term for non-fiscal residents?
The loan term in Portugal for non-fiscal residents is typically up to 30 years, depending on your age.
Do I need life insurance to get a Portuguese mortgage?
Most banks require you to have life insurance in place before you take out a mortgage, especially if you’re an older applicant or you have certain medical conditions. Life insurance policies in Portugal are usually inexpensive.