The Ultimate Guide to Getting a Mortgage in Portugal (2025)
Everything you need to know about mortgage rates, simulators, documents, and expert advice to buy property in Portugal with confidence.
📑 Table of Contents
- Why Buy Property in Portugal?
- Types of Mortgages Available in Portugal
- Mortgage Rates in Portugal (2025)
- Use Our Mortgage Calculator
- Step-by-Step Mortgage Process in Portugal
- Documents Required for a Portuguese Mortgage
- Costs & Fees: The True Price of Financing
- Banking in Portugal: Opening an Account
- Expert Mortgage Broker Advice
- FAQs
- Next Steps & Free Downloads
Why Buy Property in Portugal?
Portugal continues to rank as one of the best places to buy real estate in Europe in 2025. With beautiful beaches, stable property values, excellent healthcare, and welcoming residency options, it attracts both investors and lifestyle buyers.
The Algarve in particular offers:
Excellent rental returns
Sunshine 300+ days a year
English-speaking professionals
A safe, stable investment climate
Types of Mortgages Available in Portugal
Whether you’re a resident or non-resident, Portuguese banks offer a variety of mortgage options:
Acquisition Mortgages
Construction Loans
Equity Release Mortgages
Mortgage Transfers
Capital Repayment Mortgages
Interest-Only Mortgages
Variable and Fixed-Rate Options
💡 Non-residents can generally borrow up to 70% of the property value, while residents may access up to 90%.
Mortgage Rates in Portugal (2025)
Here are the average mortgage rates in Portugal as of Q2 2025:
| Mortgage Type | Rate (Approx.) |
|---|---|
| Fixed 20–30 Years | 3.9%–4.5% |
| Variable Rate | 3.2%–4.0% |
| Interest-Only (short-term) | 4.5%+ |
Rates vary depending on residency status, income, loan term, and LTV ratio. We recommend checking with a broker for tailored options.
Use Our Mortgage Calculator
Try our free Mortgage Calculator for Portugal to estimate your monthly repayments based on:
Property price
Down payment
Mortgage term
Fixed or variable rate
Example: A 400,000€ property with a 30% deposit at 4.1% over 30 years = ~€1,357/month (principal & interest)
- Principle and Interest
Step-by-Step Mortgage Process in Portugal
Buying with a mortgage? Here’s what to expect:
Pre-Approval with Lender
Gather and Submit Required Documents
Formal Mortgage Offer Issued
Property Valuation Ordered
Set Completion Date & Transfer Funds
Deeds Signed with Notary
⚠️ Total time: 2 to 6 months
Download the full timeline infographic here: Mortgage Timeline PDF
Documents Required for a Portuguese Mortgage
Personal Documents:
Passport(s)
Portuguese Tax Number (NIF)
Proof of income (contracts, tax returns)
3–6 months of bank statements
Utility bill
Property details (if available)
Employment Status:
Employed: payslips, employer letter
Self-Employed: tax returns, P&L accounts
Retired: pension proofs
📥 Download our Mortgage Document Checklist PDF here.
Costs & Fees: The True Price of Financing
💰 Estimated Costs for €250,000 Property:
| Cost Item | Estimated Value |
| IMT Tax | €5,000 |
| Stamp Duty (0.8%) | €2,000 |
| Legal Fees | €1,800 |
| Application & Valuation | €580 |
| Deeds & Registry | €2,400 |
| Total | €11,780 |
Estimate Your Buying Costs in Portugal (2025)
Expert Mortgage Broker Advice
Our partner Independent Mortgage Broker offers:
Multilingual advisors (EN/PT/DE)
Full market access to Portuguese lenders
Independent advice and reports
Tailored mortgage structuring
📞 Want help with your mortgage? Contact us now.
Banking in Portugal: Opening an Account
Before securing a mortgage, you’ll need a Portuguese bank account. Here’s how:
Provide ID and proof of address
Get your NIF number
Choose between retail or digital banks (e.g., Wise, Revolut, N26)
Make sure your bank supports Multibanco
FAQs
What deposit is needed as a non-resident?
Typically, 30% of the property’s value (based on the bank valuation).
How long does the process take?
2–6 months from first contact to completion.
Can I get a mortgage without living in Portugal?
Yes. Non-residents can apply remotely via brokers.
Do I need a Portuguese bank account?
Yes, to process payments and prove financial standing.
Are interest-only mortgages common?
They exist but are less common and usually short-term.
Next Steps & Free Downloads
⚠️ Please note obtaining a preliminary offer from your chosen bank as soon as possible is advisable. This will show you not only the amount you will need but also the repayments. It will also provide some security when making an offer, most agents give preference to cash buyers if you do not have the offer already agreed.
Mark McLoughlin: A Passionate Explorer of Algarve’s Rich Heritage
For over 20 years, Mark has called the Algarve home, immersing himself in its landscapes, culture, and history. His passion lies in sharing the region’s stories through writing, photography, and guides for those who live here or dream of making the Algarve their home.
As a Level 10 Google Local Guide, Mark has contributed extensively to showcasing the Algarve’s hidden beaches, historic towns, and local gems, helping both residents and visitors discover the best of this southern paradise.
🔗 mark-mcloughlin.com
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