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Getting a mortgage in Portugal as a UK buyer
| The contents of this article are for informational purposes only and do not constitute legal or tax advice. Decisions related to tax should be made after thorough research, consultation and verification from a qualified financial and legal advisor. |
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Buying a holiday home in Portugal, or searching for an investment property? You might even be planning a permanent move from the UK. Whatever your plans, you may need to know about how mortgages work in Portugal, especially for foreign applicants.
We’re here to help, with a practical guide to mortgages in Portugal for UK buyers. This includes the steps involved in the application process, the eligibility requirements, and what documents you’ll need. Plus, the fees and costs involved, and the current mortgage rates in Portugal.
And if you’re looking for ways to save money on currency exchange when sending a deposit or mortgage fees to Portugal, check out the money services provider Wise.
You can send large transfers with Wise for low fees* and mid-market exchange rates - making it ideal if you’re sending a secure international transfer.
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Can you get a mortgage in Portugal as a non-resident?
Yes, many Portuguese banks and lenders do offer mortgages to foreign citizens and non-residents.
If you’re not living there, you’re likely to need a deposit of at least 30%¹ - as well as meeting other eligibility and affordability requirements.
You might find it useful to work with a specialist broker, who can help you find the right mortgage for you. Bear in mind, though, that this usually comes with a fee.
Read more: How to transfer large amounts of money from the UK
Getting a mortgage in Portugal from the UK after Brexit
Brexit changed the legal status of UK citizens in the EU. This means that UK buyers are now classed as third-party nationals, which means additional checks around residency, taxation and compliance are likely to be carried out.
This doesn’t mean that Brexit has stopped UK buyers from securing Portuguese mortgages. You can still apply as a non-resident, but there might just be additional checks and documentation required.
Mortgage eligibility criteria for UK citizens in Portugal
While every mortgage lender has its own rules, you’ll usually need to meet the following requirements:
- Have a Número de Identificação Fiscal (NIF) - a Portuguese tax number¹
- Have a good credit score
- Prove that you can afford your repayments, using income, expenses and debt information
- Have a total debt-to-income ratio of below 35% (or 30% for some lenders)¹
- Have a deposit of at least 30%.¹
Is it easy to get a mortgage in Portugal?
If you meet the criteria and have all your documentation in order, getting a mortgage in Portugal can be relatively straightforward - especially if you’re a resident.
However, you’ll still need to meet all the eligibility and affordability requirements, just as you would when getting a mortgage in the UK.
For non-residents, you may find the process a little more complicated, with more requirements for documentation or extra information. This can potentially slow down the process.
Step by step guide on how to apply for a Portugal mortgage as a foreigner
To give you an idea of what to expect, here’s a step-by-step look at the process of applying for a Portuguese mortgage as a foreign national:
1: Work out how much you can afford to borrow
You can contact the lender directly or use a broker for this, but there are also handy affordability calculators you can use - like this one from online real estate marketplace Idealista.
2: Check your eligibility
The next step is to check that you meet all of the eligibility requirements, which may involve contacting multiple lenders. At this stage, it’s a good idea to start getting your documentation in order.
3: Get your NIF
You’ll need a Número de Identificação Fiscal (NIF) tax number in order to get a mortgage in Portugal, as well as to open a local bank account and buy property there. So, it’s a good idea to get yours as soon as possible.
You’ll usually need to be in Portugal to do this, applying with your passport and proof of address at a local Serviço de Finanças (tax office). However, it is also possible to get one from outside the country by appointing a fiscal representative in Portugal.
4: Apply for mortgage pre-approval
Mortgage pre-approval can be extremely helpful when making offers on properties, as it demonstrates that you have financing in place and can afford the purchase price.
You’ll need to shop around for suitable mortgages, and then you can apply for pre-approval from your chosen lender - or use a broker to do this. You’ll usually need details and basic documents relating to income, employment and financial history ready.
5: Find a property to buy
Find a property within your budget and agree on a purchase price with the seller. Inform your mortgage provider, ready to take the next steps.
6: Apply for your mortgage
At this stage, you’ll officially apply for your mortgage. You’ll need to provide all the required details and documentation (we’ll cover what you’ll need in just a moment) and submit a full application.
The lender will usually carry out a valuation appraisal on the property, which is essential for securing the mortgage. An appraisal fee may apply.
7: Wait for approval
If your application is successful, you’ll be issued with a binding mortgage offer. This sets out all of the details, terms and conditions of the mortgage.
You’ll usually have a short period to read through everything, accept the offer and sign the official mortgage deed/contract.
Your solicitor will carry out all the other legal work to complete the property purchase, including arranging with the lender to draw the mortgage loan and pay the outstanding purchase price to the seller.
Which documents do you need as a non-resident?
The exact documents you’ll need to apply for a mortgage in Portugal will vary between lenders.
But here’s an idea of what you’re likely to need as a non-resident:
- Proof of ID
- Proof of address
- Número de Identificação Fiscal (NIF) tax number
- Proof of income - such as pay slips, tax returns and bank statements
- Proof of employment - such as an employment letter or contract which specifies salary
- Reference letter from your current bank and/or international credit reports
- Property transaction documents - such as the purchase agreement, proof of deposit and eventually, the final sales contract and title deed.
You may also be asked for other documents relating to your credit history or other assets, debts and mortgages.
The stronger your financial documentation, the better the chances of acceptance. So it pays to be prepared, with as much proof of income and a good credit history as possible.
How long does it take to get a mortgage in Portugal?
The timeline for getting a mortgage in Portugal varies between lenders, but it usually takes around 6 to 10 weeks.² However, it can potentially take longer if the transaction is complicated or there are any issues with your documents.
Fees and costs for getting a mortgage in Portugal
Applying for a mortgage in Portugal usually involves some fees. Below, we’ll take a look at the main ones you’ll need to factor into your budget.
Valuation fees
In most cases, a valuation of the property will need to be carried out, and the buyer is responsible for the fee. It’s usually around €250 to 500 EUR.³
It’s important to note that this valuation survey only looks at the value of the property, and won’t identify any structural, maintenance or other issues. You’ll need to commission your own building survey for that.
Mortgage arrangement fees
This is the main fee for issuing the mortgage. In Portugal, it’ll either be a flat fee of around €600 to €1,000 EUR, or just less than 1% of the total loan amount - it depends on the lender.³
Other fees and costs
You may also encounter some of these other costs when applying for a mortgage in Portugal:
- Stamp duty - usually around 0.6% of the loan amount³
- Notary/registration fees (for registering the mortgage deed) - around €500 to €1200 EUR³
- Broker fees (if you’re using a broker) - these costs vary by provider, so you’ll need to get quotes
- Transfer fees - if you need to make payments between countries to pay the deposit or the fees above, you may incur fees.
Read more: How to transfer large sums of money between bank accounts?
Portuguese banks or lenders offering mortgages to foreigners
Most major banks in Portugal offer mortgages to both local citizens and foreign applicants. This includes:
- Novobanco
- Millennium BCP
- Santander
- HSBC (expat/international services)
Mortgage rates in Portugal
As of early 2026, mortgage rates in Portugal ranged between 3% and 5%, for both fixed and variable mortgages.⁴
Can you get a UK mortgage to buy property in Portugal?
You might find it difficult (although not impossible) to get a mortgage in the UK to finance your property purchase over in Portugal.
Not many UK banks and lenders offer what are often known as ‘overseas mortgages’, so you’ll need to do some shopping around. Your best bet may be specialised international, expat or Portugal-based lenders.
You could also look at remortgaging an existing property you own in the UK, borrowing more to raise funds for your purchase in Portugal.
Crucially, you should only do this if you can afford the repayments. It could also be a good idea to seek professional financial advice first.
Read more: The best UK banks for sending money abroad
Do banks offer Buy-to-Let (BTL) mortgages in Portugal?
Specialist Buy-to-Let (BTL) mortgages don’t really exist in Portugal, like they do in the UK. This is because there aren’t usually any restrictions on residential mortgages which prevent the property from being rented out.
However, there are a couple of important points to bear in mind:¹
- You’ll need to keep the rental deposit in the bank account associated with your mortgage
- You’ll need to include a clause in the rental contract that says that the property is mortgaged.
Refinancing a mortgage in Portugal
It’s also possible to remortgage a property in Portugal, which is useful if you want to switch providers to get better interest rates or restructure loan terms.
Refinancing can also help you borrow more money, such as to fund another property purchase without having to sell your first property.
You’ll just need to make sure you can afford the repayments and aren’t overstretching yourself.
Types of mortgages in Portugal
Here are the main mortgage types you can choose from in Portugal:³
Fixed-rate mortgage
With fixed rate mortgages, the interest rate remains the same for the entire term (for example, 5 or 10 years). This offers predictable, consistent payments, although interest rates can be a little higher than variable rate mortgages.
Variable-rate mortgage
With this mortgage type, the interest rate fluctuates based on the Euro Interbank Offered Rate (Euribor), plus a fixed bank spread. Rates tend to adjust every 6 or 12 months, so payments can increase or decrease once or even twice a year.
Mixed or capped-rate mortgage
Mixed rate mortgages often have an initial fixed period (such as 5 years) before switching to variable. Capped-rate mortgages have a variable rate which is capped at a maximum ceiling for a set period.
Final tips for getting a mortgage in Portugal as a non-resident
To stand the best chance of getting accepted for a Portugal mortgage as a non-resident, bear these tips in mind:
- Try to build up a credit file or some form of financial footprint in Portugal, such as opening a local bank account. Having some form of international account which accepts euros (EUR) can also streamline the payment process later on.
- Ensure you have a large enough deposit
- Get an international credit report, if possible - or a reference letter from your UK bank
- Get tailored advice about suitable mortgage products for non-residents and foreign applicants - this may mean using a specialist broker
- Make sure you have all your documentation in order, especially relating to income, employment and savings.
Manage overseas property costs with Wise
If you’re sending your deposit and mortgage fees to Portugal from the UK, you may incur hefty transfer and exchange fees when converting your British pounds to Euros (EUR). This is where Wise and the Wise account can help you save money.
Open a Wise account online and you can start managing your money in 40+ currencies. It’s not a bank account and offers customers an alternative option to a conventional bank account, but has similar features.
Here’s an overview of the main benefits for using Wise: |
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FAQs
Can you get a 100% mortgage in Portugal?
No, 100% mortgages aren’t usually available in Portugal. In most cases, buyers are required to have a deposit of at least 20% of the purchase price.⁵
How much deposit do you need for a mortgage in Portugal?
As a non-resident, you may need a deposit of at least 30% to secure a mortgage in Portugal. This can be lower for residents.¹
How long can I stay in Portugal if I buy a house?
How long you can stay in Portugal depends on your visa or residence permit, and is not related to buying and owning property.
UK nationals can stay in Portugal for up to 90 days in any 180-day period without needing a visa. After this time, you’ll need to apply for the relevant visa.
Sources used:
- Online Mortgage Advisor - Getting a Mortgage In Portugal
- Traverse International Finance - Portugal Mortgage Factsheet and FAQ
- Traverse International Finance - Portugal Mortgage Guide
- Idealista - The real cost of buying property in Portugal in 2026: a guide for foreigners
- Idealista - Getting a mortgage in Portugal as a foreigner: a complete guide
Sources last checked on date: 23-Feb-2026
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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