🏡 Getting a Mortgage in Portugal as a U.S. Citizen: What You Need to Know

Yes, you can finance your property in Portugal as a non-resident—but the process is very different from what you might be used to in the U.S. Here’s a clear breakdown of what to expect, how to prepare, and who can help smooth the way.

---

🇵🇹 1. Portuguese Banks Do Work With Foreign Buyers

The good news? Several Portuguese banks welcome international buyers and offer tailored services.

Look for banks with dedicated international mortgage departments, such as:

• BPI
• Santander Totta
• Novo Banco
• Millennium BCP

These institutions often have English-speaking staff and can guide you through the process more efficiently.

---

📄 2. Key Documents You’ll Need

Be ready to provide detailed documentation. While each bank may have slightly different requirements, you’ll typically need:

• A valid passport
• Your Portuguese NIF (tax number)
• Proof of income, such as:
  • Recent U.S. tax returns
  • Pay stubs
  • Or financial statements for self-employed applicants
• A proof of address
• Sometimes, a credit report—though your U.S. credit score itself won’t be used

Note: Portuguese banks don’t use FICO scores, but they do assess your debt-to-income ratio and overall financial stability.

---

💶 3. Down Payment Expectations

As a non-resident, you should expect to put down 20–30% of the property’s purchase price.

In some cases, especially with secondary residences or luxury properties, the required down payment may be higher. Also, keep in mind:

• Closing costs and taxes typically add 6–10% on top
• Funds for your down payment and fees must be in your Portuguese bank account before closing

---

📉 4. Mortgage Terms & Interest Rates

Portugal offers both fixed and variable-rate mortgages, and interest rates are generally lower than what U.S. buyers are used to—thanks to EU lending standards.

Typical terms include:

• Loan durations up to 30 years
• Competitive interest rates (as of 2025, often 3–4% fixed)
• Some banks allow early repayment with minimal penalties

---

✅ 5. Get Pre-Approved Early

A mortgage pre-approval (known as a “simulação” or pré-aprovação) can be a game-changer when you’re house hunting.

• It demonstrates your seriousness to sellers and agents
• It helps you narrow your budget
• And it can speed up the closing process significantly

---

💡 Pro Tip: Work with a Mortgage Broker or Consultant

Navigating the Portuguese mortgage system as a foreign buyer can be overwhelming. A reputable mortgage broker or financial consultant can:

• Compare offers across banks
• Translate terms and conditions
• Help negotiate better rates
• Simplify document collection and submission

We work with experienced, bilingual professionals who know the ins and outs of financing for non-residents—and we’d be happy to introduce you.

---

🔚 Conclusion: Financing Is Possible—With the Right Help

While securing a mortgage in Portugal takes patience and paperwork, it’s absolutely achievable with proper planning. Whether you’re buying a seaside retreat or a city apartment, understanding the process up front helps you avoid surprises down the road.

Need a trusted local contact or advice tailored to your finances? We’ve been through it—and we’re here to help you get the right support every step of the way.