Portugal Mortgage Calculator

Yes, you can finance a property for your Golden Visa application, but there are important considerations. The Portuguese Golden Visa program requires a minimum investment of €500,000 in real estate (or €350,000 for rehabilitation projects in certain areas). While banks will finance properties for Golden Visa applicants, they typically require that you make a down payment of at least the minimum investment threshold. This means you would need to put down at least €500,000 in cash, and could potentially finance any amount above that. Some banks offer specialized Golden Visa mortgage products with more favorable terms once your residency is approved.

For non-resident borrowers, Portuguese banks typically offer a maximum LTV of 70-80%, meaning you'll need to provide a down payment of at least 20-30% of the property value. The exact LTV offered depends on your financial profile, the property type, and the bank's policies. Some banks may offer higher LTVs to residents of certain countries or to high-net-worth individuals who establish banking relationships in Portugal. For Golden Visa applicants, the LTV is effectively lower since the minimum investment amount must be covered by your down payment.

Portuguese mortgages for non-residents typically feature terms of up to 30-40 years, though the term is usually capped based on the borrower's age (loans generally must be fully repaid by age 75-80). Interest rates vary by product type: fixed-rate mortgages usually lock in a rate for 5-10 years before switching to variable rates, currently ranging from 3.3-4.5% for non-residents. Variable-rate mortgages are linked to the Euribor plus a spread of 1-2.5%, with the spread determined by your financial profile and relationship with the bank. Mixed-rate options are also available, with part of the loan at a fixed rate and part at a variable rate.

When obtaining a mortgage in Portugal, budget for these additional costs: IMT (property transfer tax) ranging from 0-8% depending on property value and type; Stamp Duty of 0.8% on the purchase price; notary and registration fees of approximately 0.5-1%; mortgage arrangement fees of 0.5-1.5% of the loan amount; property valuation fees of €200-500; life insurance (required by most banks); and legal fees if using a lawyer (recommended for non-residents). In total, these additional costs typically amount to 7-10% of the property price. For non-residents, having a Portuguese tax number (NIF) and local bank account are also prerequisites for a mortgage application.

Working with a mortgage broker in Portugal is highly recommended for non-resident buyers. A good broker will have established relationships with multiple banks, understanding their specific lending criteria and which institutions are most likely to approve your application. They can help you navigate the documentation requirements, which can be complex for international clients, and often secure more favorable terms than you could obtain directly. Brokers also provide valuable assistance with translation, communication with lenders, and coordinating the entire process while you're abroad. While brokers typically charge a fee (1-2% of the loan amount), the savings and convenience they provide usually outweigh this cost, especially for first-time investors in Portugal.