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:
- AÂ 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
- AÂ 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.
đź’¶ 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
âś… 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
đź’ˇ 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.