Real Estate Financing for Foreigners in Portugal in 2025

Who can get credit, LTV and effort rate limits, maximum terms by age, all-in costs, documentation, deadlines and how to align everything with the CPCV - explained in a practical way for international buyers.

Where to start (and what changes for foreigners)

In Portugal, banks finance so much residents as non-residents. The difference lies in the limits and proof of income. For owner-occupied and permanent housing (HPP), the macroprudential recommendation of the Bank of Portugal (BdP) establishes a LTV ceiling (loan-to-value ratio) of 90% for HPP and 80% for other purposes (secondary/rental); the value of the property is the smaller between price and valuation. Source: BdP.

To non-residents, Many banks apply more conservative LTV ceilings (typically 65-75%), even when the purpose would be HPP if they resided in the country. E.g. Santander spells out solutions for non-residents and additional documentation, reflecting industry practices.

If you need dedicated support for international buyers (financial brief, “offer math” in 48 hours and calm negotiation), get to know us at Buyer's Agency and book a chat at /schedule.

How much can I ask for? (LTV, DSTI and maximum deadlines)

LTV - Loan-to-Value

• HPP: up to 90% (property value = min{price, valuation}). BdP
• Other purposes (secondary/rental): up to 80%. BdP
• Non-residents: frequent banking practice 65-75%. Santander

DSTI - Effort Rate

The banks evaluate the effort rate (credit charges / net income) to ensure sustainability; the macroprudential recommendation defines limits and exceptions (general rule, 50% with limited cushions). BdP - macroprudential measures  |  Bank Customer Portal.

Time limits by age

Since 1 April 2022, the maximum maturity of new mortgage loans has been indexed to the borrower's age at the time of hiring:

• ≤ 30 years: until 40 years
• 31-35 years: until 37 years old
• > 35 years: until 35 years old

ESRB notification  |  BdP FAQ.

Variable, fixed or mixed rate?

Variable (Euribor + spread) adjusted at each review (3/6/12 months). Fixed gives predictability (contracted rate for all or part of the term). Mixed combines both (fixed initial period followed by variable). The choice should take into account the time horizon, rate volatility and your currency of income (exchange rate risk for salaries outside the euro).

All-in financing costs (in addition to the instalment)

• Stamp duty on credit: 0.6% on capital for terms > 5 years (0.5% ≤ 5 years). ePortugal
• File commission/opening, evaluation and records: values vary per bank/provider; part FEI (FINE) and detailed simulation.
• Associated insurance: multi-risk (common use) and life insurance (not compulsory by law, but often required by the bank; you can choose an insurer). Santander - guide  |  Bank Customer Portal - FAQ
• Early repayment: Exemption variable rate commission for HPP until 31/12/2025 (Law no. 1/2025). Fixed-rate until 2%. BdP - news  |  DECO PROteste

For a complete overview of acquisition costs, see also: Taxes and costs when buying a house in Portugal.

Documents: residents vs. non-residents

Base (varies per bank): ID, NIF, proof of income (IRS/equivalent declaration, receipts/salary slips), bank statements and statement of liabilities (country of residence). Documents - Santander  |  UCI - Non-residents

Property: Caderneta Predial, Certidão Permanente (Land Registry), Licença de Utilização (or exemption), Certificado Energético. A evaluation can be reused (up to 6 months) if it complies with the rules of an expert registered with the CMVM. BdP FAQ - Evaluation

If you need support with your NIF, bank account and paperwork, take a look at our guide: TIN, bank account & essential documents.

Deadlines and typical schedule

1. Pre-analysis (48-72h)simulation and “offer math” with all-in (taxes, stamp, insurance, valuation, registrations).
2. Pre-approval (1-2 weeks): validation of income/solvency, opening of files.
3. Evaluation (1 week)appointment, survey and report.
4. Promissory contract (CPCV): signed after “go/no-go” of the bank; include conditions of financing and evaluation with realistic deadlines (see next section).
5. Deed (2-6 weeks after CPCV)final coordination, registration and handing over of keys.

CPCV: clauses for borrowers

In a solid CPCV, include two clear suspensive conditions: (i) Approved financing until date X (with a minimum amount and indicative rate) and (ii) Valuation ≥ price (or ≥ agreed minimum value). If the valuation falls below this, the contract dictates what happens: renegotiation, reinforcement of equity or cancellation without loss of the down payment. See our guide: Understanding the CPCV in Portugal.

Risks to watch out for (and how to mitigate them)

• Interest rates: if you opt for variable/mixed, test the instalment at +200-300 bp Euribor. See BdP Economic Bulletin for macro framing.
• Exchange rate: yields outside the euro expose you to exchange rate volatility; consider buffers and partial cover.
• Output capacity: check amortisation/transfer costs (in 2025, variable exemption for HPP). BdP

All-in checklist before the proposal

• Price + tax (IMT, Stamp Duty on purchase) + credit costs (Stamp duty on credit, valuation, dossier commission, registrations) + insurance (life and multi-risk) + work (if applicable) = real number.
• LTV and equity (include costs in the calculation, not just the price).
• DSTI under adverse rate scenarios (“stress” instalments).
• Deadlines by age (35-40 years old depending on the age group). ESRB

Would you like our “Offer Math” model in 48 hours? Tick here.

FAQ - frequently asked questions

I'm a non-resident. Can I get 80-90% LTV?

It's rare. The banking practice for non-residents is generally between 65-75% of LTV, even when the property would be HPP. Confirm limits with your bank/intermediary. E.g. Santander

What is the maximum effort rate?

As a general rule, banks work with DSTI ≤ 50%, with limited margins for exceptions. BdP - Macroprudentials

How long can I take out a 40-year loan?

Depends on age: ≤30 years (40 years), 31-35 (37), >35 (35). BdP FAQ  |  ESRB

Is life insurance compulsory by law?

Not by law, but it is often required by banks. You can choose an insurer. Bank Customer Portal  |  Santander

How much Stamp Duty do I pay on my credit?

0,6% for terms > 5 years (0,5% ≤ 5 years), applied to the loan amount. ePortugal

If the valuation falls below the price?

The bank limits LTV to smaller between price and valuation. Therefore, include in the CPCV a evaluation condition and financing with deadlines. CPCV Guide

Can I amortise without penalty in 2025?

For PPH in variable rate, the commission is suspended until 31/12/2025. Fixed rate, maintained (until 2%). BdP  |  DECO PROteste

How long does it all take?

From pre-analysis to deed: 4-8 weeks in linear processes. Plan for more time if you are a non-resident (additional documents and validations).

Useful resources

• Banco de Portugal - Macroprudential FAQ (LTV/DSTI)
• Bank Customer Portal - Solvency assessment
• ePortugal - Stamp Duty
• Santander - Non-residents

Next steps

If you're planning a purchase in Cascais/Lisbon, talk to us: Buyer's Agency, /schedule and download the Buyer's Guide. For customer references, see /testimonials.

Key Takeaway: In Portugal, the success of financing for foreigners comes down to three things: realistic all-in figure, LTV/DSTI aligned and a CPCV with valuation and financing clauses well-written.