MORTGAGES FOR YOUR PROPERTY IN PORTUGAL

Buying property in Portugal can be made simpler by claiming a Portugal mortgage. One can claim up to 80% of the value estimated to buy property in Portugal. Mortgage in Portugal is available from 5 to 30 years of time. The mortgage is available in Euros and all other major currencies. The bank’s surveyor will officially evaluate the property for sale. Though every other regulation is the same for both foreign and local residents with regards to a Portugal mortgage, loan requirements are different for Portuguese and foreign investors. The lending criteria and the mortgage packages available for local residents and foreigners vary from each other. For a non-resident, the maximum loan that can be availed for a period up to 30 years is 80% while it is 90% for a resident.


Mortgage is available to investors who wish to invest on properties in Portugal. Portugal Mortgage is relatively easy to claim, for those who have a Portuguese residency card, tax code, bank account, proof of regular income, good credit rating. These loans are available for purchasing any kind of property like small houses, studios and large villas. For buying a property ‘off plan’, mortgage can be raised only after its completion. One can apply and keep the offer ready in writing. However, valuation and fund transfer will not be made until the property is completed and inspected for valuation.

It is advisable to engage a legal advisor prior to signing the contract for buying property in Portugal. It is essential to check whether the property is free of debt and the price is reasonable. The buyer can also give his lawyer Power of Attorney to sign on behalf of him if he is unable to be in Portugal during the process. Lawyers generally charge 1% - 2% of the property value as processing fees. And it is not advisable to have the seller’s lawyer for your purposes. It is difficult to make any changes in the cost of the Portuguese mortgage after the completion of sanction. Hence it is advisable to rise the maximum funding one requires in the beginning stage itself as changes at a later stage might not be possible or will be very costly.

Necessary requirements for Portugal mortgage:

• Proof of income. Should be sufficient enough to pay the mortgage.
• Valid Passport and Identity Card.
• Pay slip for employees or two years account along with the tax declaration.
• 6 months Personal Bank statement.
• Proof of address.
• Signed contract (if available)
• Detailed address of the property to be purchased.

Final Process:

• After the mortgage request is made, one will receive formal approval provided the applicant is eligible and subject to valuation.
• The Bank’s surveyor evaluates the property value.
• The buyer’s lawyer is provided with registration documents.
• Funds approved by the bank will be released on the agreed date.

Portugal mortgage is a simple and easier business transaction which helps buying property in Portugal an easier one. The interest rates are nominal and the fund sanctioned encourages prospective foreigners to buy property in Portugal. Another added advantage is that most of the Portuguese banks have branches in America and European countries which can arrange mortgage in major currencies.