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Mortgages in Portugal for Residents & Foreign Buyers (2026)

By Jules de Bruin, Market ResearcherUpdated August 17 2026 | Found helpful by 9 others

Updated August 2026. Portuguese mortgages are available to residents and non-residents, with LTV limits set by Banco de Portugal. Residents can borrow up to 90% of the property value; non-residents are usually capped at 70% to 80%. Rates are fixed or indexed to Euribor plus spread. Budget for notary, registry, stamp duty, and insurance.

How Do Portuguese Mortgages Work?

You apply with a bank or broker, submit documents, receive a provisional offer, and complete the property purchase with a notary. The bank registers a mortgage on the property.

Resident vs Non-Resident

Residents generally need a 10% down payment and can access higher LTV. Non-residents typically need 20% to 30% down and may face slightly higher spreads or shorter terms.

Fixed or Variable Rate?

BankTAEG baseTAEG baseThe bank's representative all-in yearly mortgage cost without bundled products: no salary domiciliation, no bundled insurance.TAEG with productsTAEG with productsThe representative all-in yearly cost after bundling salary domiciliation and the bank's insurance, which cuts the spread by roughly half a point.Structure
Caixa Geral de Depósitos4.6%4.2%Variable: Euribor 6M (2.647% Jul-2026 avg) + spread 1.35% base / 0.85% with salary domiciliation and bundled products; mixed-rate (2y fixed then variable) options
Millennium BCP4.8%4.2%Variable: Euribor 12M (2.855% Jul-2026) + spread 1.25% base / 0.70% bonified; fixed and mixed options
Bankinter Portugal4.8%4.4%Variable: Euribor 12M (2.855%) + spread from 1.05%; mixed-rate options; transfer product waives most costs
ActivoBank4.7%4.2%Variable: Euribor 12M (2.798% Jun-2026) + 1.25% base / 0.70% bonified
Banco BPI4.8%4%Variable TAEG 4.8% base / 4.0% bonified; fixed-rate examples TAEG 5.4% / 4.7%
Santander Portugal5.3%n/aUp to 100% LTV for buyers <= 35 years under state-guarantee scheme; representative TAEG 5.3%; standard lines price ~4.6-4.9% bonified (comparator)

Each bank's own representative example, on July 2026 Euribor averages (12M 2.855%, 6M 2.647%). Novo Banco, UCI Portugal, Banco CTT publish no stable representative example.

Variable rates follow Euribor plus a bank spread of roughly 0.70% to 1.35%, common for 3, 6, or 12 months; salary domiciliation and bundled insurance cut the spread by about half a point. Fixed rates give predictable payments but often start higher. Mixed-rate products also exist.

What Are the Extra Costs?

Beyond the deposit, expect bank appraisal, notary and land registry fees, stamp duty on the loan, mortgage registration, and mandatory life and building insurance.

Frequently Asked Questions

Can Americans get a Portuguese mortgage?

Yes, but non-residents face lower LTV and may need to provide US tax documentation.

How long does approval take?

Typically 2 to 6 weeks after you submit complete documents, depending on the bank.

Is it better to use a broker?

Brokers can compare multiple banks and are especially helpful for non-residents or complex income.

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