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Getting a Mortgage in Portugal

Researched and written with AI tools from official sources. How we make our guides

How much a Portuguese bank will lend you, the limits on repayments and loan terms, help for buyers aged 35 or under, the documents, the steps, and the costs.

The Portugal Brief 10 min read

Getting a Mortgage in Portugal

Last verified: October 2026.

Who this is for

  • You want to borrow from a Portuguese bank to buy a home here, whether you live in Portugal or abroad.
  • You are 35 or under, live in Portugal for tax, and are buying your first home.
  • You already have a Portuguese mortgage and want to know about repaying early or falling behind.

Not for you if: you are still deciding whether, where, and how to buy. Read Buying Property in Portugal as a Foreigner first.

Updated October 2026. Since 1 August 2026, banks should keep your repayments on all your loans at 45% of your net income or less, down from 50%.

A Portuguese mortgage (crédito habitação) can cover up to 90% of a home's value if you will live in it, or 80% otherwise. Your repayments on all your loans should stay at or below 45% of your net income, tested at a higher rate. If you are 35 or under and buying your first home, a state guarantee can take you to 100% for loans signed by 31 December 2026. On top of your deposit, budget for transfer tax, stamp duty, and fees.

Who can get a mortgage

Portuguese banks lend to residents and non-residents, and to EU and non-EU citizens. Each bank decides whom it lends to. Where your income comes from, and whether you will live in the home, matter more than your nationality.

Whatever your situation, you need:

If you live abroad, you can still apply. The Banco de Portugal limits are the same for everyone, and each bank can set stricter rules of its own. If you will not live in the home, the 80% ceiling for other homes applies. If you live outside the EU or EEA, you may also need a tax representative. See Appointing a Fiscal Representative in Portugal.

How much you can borrow

The Banco de Portugal sets three limits for new home loans. They are a recommendation, not a law, but banks must explain any case where they do not follow them.

The loan compared with the home's value

  • Your own permanent home: up to 90%.
  • A second home, a holiday home, or a rental: up to 80%.

The bank uses whichever is lower: the price you pay or the valuation. If you pay €220,000 and the valuation says €200,000, a 90% loan is €180,000. You pay the other €40,000 yourself. The old exception that let banks lend more on homes they owned themselves ended on 1 August 2026.

Your repayments compared with your income

Since 1 August 2026, your monthly repayments on all your loans should not exceed 45% of your net monthly income. That includes car loans and personal loans. If you borrow with someone else, the bank counts the loans of each of you.

The bank tests this at a higher rate than you will actually pay. If you will be over 70 before the loan ends, the bank also reduces your expected income for those years.

Example: if your household takes home €3,000 a month, all your loan repayments together, at the tested rate, should stay at or below €1,350.

Each bank can go over 45% for a small share of the money it lends. Ask the bank whether you could qualify.

How long you can borrow for

  • If you are 35 or under: up to 40 years.
  • If you are over 35: up to 35 years.

If two of you borrow together, the age of the older borrower decides the limit. Many banks also want the loan repaid by a set age. That is each bank's own rule, so ask before you apply.

If you are 35 or under

Two government measures help young buyers. They are separate, and you can use both.

The state guarantee

If you cannot put down the usual 10% deposit, the State can guarantee up to 15% of the price. That lets the bank lend up to 100%. You still pay the taxes and fees yourself.

You qualify if all of these apply:

  • You are between 18 and 35.
  • Your tax address is in Portugal, and you have no tax or social security debts.
  • Your income is within the eighth income tax band or lower.
  • You do not own a home or other urban property.
  • You have not used the guarantee before.
  • The price is €450,000 or less.
  • Every buyer is also a borrower on the loan.

The government says the loan must be signed by 31 December 2026. The guarantee lasts ten years from the signing. Not every bank offers it, so ask.

No IMT and no purchase stamp duty

If you are 35 or under and buying your first home to live in, you pay no IMT and no 0.8% purchase stamp duty on a price up to €330,539 in 2026. Between €330,539 and €660,982, you pay IMT at 8% only on the part above €330,539. Above €660,982, the normal single rate applies.

No one may claim you as a dependant on their tax return that year. You must not have owned a home, or a share of one, in the three years before. You must move in within six months and keep it as your own home for six years, or you lose the relief.

This relief does not cover the 0.6% stamp duty on the loan. See Claiming the Under-35 IMT and Stamp Duty Exemption in Portugal.

Choosing an interest rate

Your rate is either linked to a market rate or fixed.

  • Variable rate (taxa variável). Euribor, the euro interbank rate, plus the bank's margin (spread). Your rate changes when the Euribor period resets, for example every 6 or 12 months.
  • Fixed rate (taxa fixa). The same rate for the agreed period. You know your payment, but it often starts higher.
  • Mixed rate (taxa mista). Fixed for the first years, then variable.

Euribor moves with the market and can rise quickly. If a rise of a few points would break your budget, look at fixed or mixed rates. In August 2026, the average rate on home loans signed in the previous three months was 2.910%, according to INE.

Banks may lower the spread if you buy extra products, such as salary transfer, insurance, or a credit card. Work out whether the saving is worth the cost. If you later drop those products, the spread can go up.

Documents you need

The bank will usually ask for:

  • passport or residence card, and NIF, for every borrower;
  • recent payslips, or tax returns if you are self-employed;
  • your last income tax returns (IRS), from the Portal das Finanças;
  • your employment contract;
  • recent bank statements;
  • the promissory contract, the property's tax record (caderneta predial), and its land registry certificate (certidão permanente), once you have chosen a home.

The bank checks the Banco de Portugal's credit register (Central de Responsabilidades de Crédito) itself. You can ask the Banco de Portugal for your own report.

If you live abroad, add:

Step by step

  1. Get your NIF and a bank account. Do this first.
  2. Ask two or three banks for a simulation. Each must give you a standard European information sheet (FINE) based on your details.
  3. Compare offers. Compare the total annual cost (TAEG), which includes fees and compulsory insurance, and the total amount you will repay (MTIC). Do not compare interest rates alone.
  4. Sign the promissory contract. You pay a deposit. Make sure the contract says what happens if the bank refuses the loan.
  5. The home is valued. The bank must use an independent valuer registered with the securities regulator (CMVM). If you pay for the valuation, the report is yours.
  6. Get the formal offer. Once approved, the bank gives you an updated FINE and a draft contract. The offer stays open for at least 30 days. You cannot accept it in the first seven days, so you have time to think.
  7. Arrange insurance. The bank can require life and home insurance linked to the loan. It must accept a policy from another insurer if the cover is equivalent. See Getting Home Insurance in Portugal.
  8. Sign the deed. You sign the purchase and the mortgage on the same day, at a notary, with a lawyer or solicitor, or at a Casa Pronta counter. The bank pays the seller. See Using Casa Pronta to Buy or Sell a Home in Portugal.

No official processing time is published. Ask each bank how long its approval usually takes.

What it costs

CostAmount
IMT (transfer tax), own permanent home0% up to €106,346 in 2026, then rising bands
Stamp duty on the purchase0.8% of the price or tax value, whichever is higher
Stamp duty on the loan0.6% of the loan, for loans of five years or more
Stamp duty on interest4% of each interest payment, included in your instalment
Deed and registration at Casa Pronta€700 for a purchase with a mortgage (€50 per extra property)
Valuation, bank fees, and insuranceSet by each bank and insurer; ask for them in the FINE

Example: a €300,000 own home with a 90% loan of €270,000.

  • Deposit: €30,000.
  • IMT: €10,541.96.
  • Stamp duty on the purchase: €2,400.
  • Stamp duty on the loan: €1,620.
  • Casa Pronta: €700.

That is about €45,262 before valuation, bank fees, and insurance. If you are 35 or under and qualify for the young buyer relief, the IMT and the €2,400 purchase stamp duty fall away. For the full IMT tables, see Property Taxes in Portugal for Residents and Foreign Owners.

Using a mortgage broker

A credit intermediary (intermediário de crédito) sends your file to banks and negotiates for you. Intermediaries need authorisation from, and registration with, the Banco de Portugal. Check that a broker is registered before you sign anything.

How a broker is paid depends on the type. A tied broker is paid by the banks it works with. An independent broker can be paid only by you. Ask which type you are dealing with, and how much it will cost, before you start.

Repaying early

You can repay part or all of your loan at any time. Give the bank seven working days' notice for a partial repayment, on an instalment date, and ten working days' notice for full repayment. The bank can charge a fee of no more than:

  • 0.5% of the amount you repay while a variable rate applies;
  • 2% of the amount you repay while a fixed rate applies.

The bank cannot add other charges for the repayment itself, apart from documented costs such as registry fees and taxes.

If you cannot pay

If you think you will miss a payment, tell your bank at once. The law gives you two protections:

  • Before you fall behind: the bank must monitor its loans for signs of trouble and talk to customers at risk.
  • After you fall behind: the bank must put you into an out-of-court process to renegotiate (PERSI) between the 31st and 60th day after a missed payment. You can also ask to join it earlier. While it runs, the bank cannot cancel the contract or take you to court over the debt.

The Banco de Portugal's bank customer portal (Portal do Cliente Bancário) explains these processes and lists free support for indebted households.

Tax relief on mortgage interest

If you signed your mortgage before 1 January 2012, you can deduct 15% of the interest on your own permanent home from your income tax, up to €296 a year. Loans signed from 2012 onwards get no relief.

This guide is general information, not financial or legal advice. Loan terms and rules change; check the bank's information sheet and the official sources before you sign.

Sources

This guide is written from official sources and, where relevant, organisations' own websites.

Last verified October 2026. Rules and fees change; check the official source before acting.

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