Foreigners get a mortgage in Portugal more often than they think – here’s what you need to know.

Portuguese banks willingly finance the purchase of real estate for foreigners, but the terms depend on status. If you are a tax resident of Portugal with a NIF, the process is similar to that of Portugal. Non-residents are more difficult: they require a higher down payment (20-30%), interest rates are higher, and conditions are tighter.

For non-residents, banks usually give up to 80% of the value of real estate (up to 75% for residents outside the EEA). The main criterion is that the ratio of payments to income should not exceed 50%. A mortgage can be issued for 30 years. Spreads start at 0.60% and you can now open a Portuguese bank account remotely.

Non-residents pay the full amount of transfer taxes (IMT) and fees - there are benefits only for residents. Prepare documents in advance: tax returns, statements, ID card, Portuguese NIF. Experts advise you to check your creditworthiness before you search for a property – this will strengthen your position in the market, especially in Lisbon, Porto and the Algarve.

Source: Portugal News