Non-residents can borrow in Portugal, but 2026 changed both the lending rules and the cost of buying: tighter Banco de Portugal limits from August and a flat 7.5% transfer tax for non-resident housing buyers.
Portugal lends to foreigners, but 2026 changed both the mortgage rules and the cost of buying as a non-resident. This guide covers the Portugal-specific detail that a general overview of mortgages for non-residents leaves out.
Can a non-resident borrow?
Yes. There is no legal restriction on foreigners borrowing in Portugal, and many buyers finance a purchase without living there. Each bank applies its own appetite, and lenders such as Caixa Geral de Depósitos, Millennium BCP, Santander, BPI and Novobanco are reported to work with non-residents.
How much will they lend
Practice varies by bank and buyer profile. Advisers report that non-residents typically get 60% to 70% of the value in 2026, with some reports of up to 75% or 80% for euro-earning EU residents, and less for borrowers from outside the EEA. Banks lend against their own valuation, which can be below your price. The regulatory framework that applies to everyone is Banco de Portugal's Macroprudential Recommendation 1/2026, applying to credit whose solvency assessment takes place from 1 August 2026:
- loan-to-value of up to 90% for your own permanent home and up to 80% for other purposes such as a second home or investment
- total monthly debt payments, tested with an interest-rate shock, should not exceed 45% of net income, down from 50%, with banks allowed to exceed it for up to 10% of new credit per semester
- a maximum term of 40 years for borrowers aged 35 or under and 35 years for older borrowers, with the average-maturity guideline removed
These are recommendations that the Banco de Portugal has said it intends to make binding. In practice banks go lower for non-residents and usually set their own age limit at maturity, so ask each lender.
Rates in 2026
Portuguese mortgages are mostly variable, priced as Euribor plus a spread, and the six-month Euribor is the most used index. Reported benchmarks in July 2026 were about 2.6% for six months and 2.8% for twelve months, and one source puts them closer to 2.8% and 3.0% in August, so check the live figure on the day. Spreads are negotiable. Some lenders advertise from around 0.60% for strong resident profiles, and non-residents typically pay somewhat more. Fixed and mixed-rate products exist, and for a euro-earning borrower a fixed rate is worth pricing against the variable.
The new cost: 7.5% IMT for non-residents
The biggest 2026 change is not about the loan. Under Decree-Law 97/2026, published on 20 May and in force from 25 May 2026, buying housing as someone who is not tax resident in Portugal attracts a flat 7.5% IMT with no exemptions or reductions. Exceptions exist for buyers who are already tax resident when they buy, who become tax resident within two years, or who commit the property to moderate-rent leasing, and in those cases you can apply to the tax authority for a partial refund. On a €400,000 home, 7.5% is €30,000, on top of the 0.8% Imposto do Selo on the purchase price, which is another €3,200. The flat rate is described as applying to urban property used exclusively for housing, so check how it treats land and commercial property. Tax residence depends on presence of more than 183 days in 12 months or a dwelling that indicates habitual residence, not on nationality.
Other costs
- stamp duty on the credit: 4% on interest and on bank fees, plus a charge on the loan amount that depends on the term, so use the total shown in the FINE
- bank fees, the property valuation and compulsory insurance, which differ by lender
- notary, land registry and legal fees, which are separate from IMT
The bank must give you the standardised information sheet (FINE) at least ten days before you sign. It shows the total amount you will pay, so compare it across lenders.
What you need
- a passport and a Portuguese tax number (NIF), which you need before opening an account or applying
- a Portuguese bank account, which lenders usually require
- proof of income, recent tax returns and bank statements, sometimes translated or apostilled
- the sales contract and property documents
- possibly a fiscal representative in Portugal, which can be required for some non-residents and helps you manage the process remotely, so confirm whether it applies to you
Expect several weeks from application to completion with complete paperwork, and longer if documents need translating.
Currency risk
A euro loan against income in another currency means your real repayment moves with the exchange rate. Stress-test the payment against a weaker home currency and keep a buffer.
FAQ
Do I need to be resident to get a mortgage? No, but terms are tighter for non-residents. How much deposit? Plan for 30% to 40% of the price plus taxes and costs, which with the new 7.5% IMT can be considerable. Does the 7.5% IMT apply to me? It applies if you are not a Portuguese tax resident when you buy and no exception applies, so take tax advice first. Fixed or variable? Both exist, so compare the total cost in the FINE under different Euribor paths.
How we help
We connect you with brokers and banks that lend to non-residents and structure the purchase around realistic financing and the tax cost. This is general information only, not financial, tax or legal advice. Terms are set by each lender and Portuguese rules change, so confirm current conditions before you sign.