Notes for international buyers
Need Finance? Yes, Foreigners Can Get a Mortgage in Portugal
Many international buyers assume they need to pay 100% in cash. That is not true. Portuguese banks serve non-residents, but the rules are slightly different.
THE "LTV" RULE (LOAN-TO-VALUE): Banco de Portugal limits loans to 90% of the value for a permanent home and 80% for other uses, such as a holiday home. For non-residents, banks usually lend less, often 60% to 70%. Example: If you buy a villa for €500k, you will likely need a minimum down payment of €150k to €200k.
INTEREST RATES: You can choose between Variable rates (linked to Euribor) or Fixed rates (more stability). Currently, mixed rates are very popular.
THE AGE LIMIT: Most banks require the loan to be fully paid off by the time you turn 75 (some go up to 80). This is bank policy; Banco de Portugal also limits the maximum term (35 years if you are over 35). This affects how many years you can spread the payments over.
BEFORE YOU OFFER: We strongly advise getting a "Pre-Approval" from the bank before signing any contract. We can refer you to trusted mortgage brokers who speak English and handle the paperwork for you.
Written on the date shown and updated in September 2026. The law and tax figures may have changed since. This article is general information, not advice on your particular case. For questions: info@pedrotabuada.com · +351 923 337 076.