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Mortgages in Portugal in 2025: A Complete Buying Guide for Foreigners

Article -> September 29, 2025

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Real Estate & Property Investment

Mortgages in Portugal in 2025: A Complete Buying Guide for Foreigners

Portugal Homes

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Looking to buy property in Portugal and need to know more about how mortgage rates work in the country? You’ve come to the right place. This article covers everything you need to know about taking out a loan and setting up your own mortgage in Portugal, including how banks set their pricing structures, the trending averages, rate types, and so much more.

Current Mortgage Interest Rates in Portugal

In Portugal, the mortgage interest rates have been on a steady downtrend since 2024. According to the latest information put out by , referring to November 2025, the mortgage interest rates have decreased from:

September 2025 - 3.228%
October 2025 - 3.180%
November 2025 - 3.133%

Mortgage Conditions: What Affects Your Personal Quote in Portugal?

Here’s a list of what you need to keep in mind that will affect the personal quotes you get from Portuguese banks.

Residency Status: Non-residents are typically offered a lower LTV and a higher spread percentage. If you’re wanting to move to Portugal and buy a property, it’s best to also acquire residency.

Market Conditions: Since Euribor is determined by the European Central Bank, the quote you may initially get may be different from the final one, since the current interest rates may be different from the one given to you during your application.

Duration of the Loan: Non-residents are typically offered loans set with a maximum duration of 30 years.

Willingness to Acquire Financial Products: Your bank might be able to lower your spread or offer a higher LTV if you subscribe to financial products, they might be able to reduce your spread. If you don’t, your interest rate is potentially going to be higher.

Loan to Value: Banks size the loan on the lower of valuation or price. Usually, the more conservative LTV tends to have a better spread.

Financial Situation: One of the many factors influencing the bank’s decision is an assessment of how much income you earn, your current debts, and employment history.

Insurance: When you take out a mortgage loan with a Portuguese bank, you’ll also have to contract life insurance. It’s also common for banks to request home insurance as well.

Besides these considerations, you’ll also have to provide several documents for your mortgage application.

Documentation Required When Taking Out a Mortgage in Portugal

The following is not a static list, and not all banks will require all the documents, but keep in mind to have these nearby should they request them:

Proof of ID – for non-residents, this will typically be a copy of your passport;

– Portugal's Tax Identification number – mandatory for every major transaction in the country.

Proof of Income;

Bank Statements;

Utility Bills - typically asked if you're already living in Portugal.

Last year’s tax returns declaration;

As a non-resident, expect to also provide translated and apostilled documents. If you’re employed, you should also prepare the latest pay slips you have, including up to 6 months.

If you’re self-employed, you might also be asked to provide your own company’s balance sheet, as well as documentation pertaining to other sources of income.

Portuguese Mortgage Costs & Fees

When it comes to buying property in Portugal, there are always associated costs with the purchase. They are:

Stamp Duty (IS): Typically, 0.8% of the purchase price.

Property Transfer Tax (IMT): Rates vary based on property value and type.

Notary and Registration Fees: For legalising the transaction.

There are also with specifically taking out a mortgage in Portugal.

Stamp Duty: Typically 0.6% of the mortgage amount.

Application fees: depends on bank.

Property valuation fees: depends on the bank.

Early Repayment Commission: By law this was suspended on variable rate home loans until 31 December 2025, including full repayment when switching banks.

Step-by-Step Guide: How To Take a Mortgage in Portugal

: The first step in completing a successful property purchase starts here. We work directly with banks and with certified credit intermediaries to ensure you get the best possible deal.

2. Get your Portuguese NIF number and open a bank account in Portugal.

3. With Portugal Homes’ help, you’ll get a mortgage quote. Bear in mind that the market shifts, and the conditions provided to you in the quote might not be final.

4. Begin preparation by readying the documents the bank or credit institution might require from you. After you submit the necessary paperwork, you will receive a full quote mortgage with all the conditions.

5. The bank will set out a valuation report on the property. If the property’s value is determined to be at least the selling amount, there should be no issues in proceeding, provided there are no legal issues with the property.

Why Buy with Portugal Homes

Admittedly, one of the most difficult parts about moving to Portugal is the bureaucracy – which is already a headache by itself and becomes further complicated when you don’t understand Portuguese.

Not to mention, living in Portugal as an expat isn’t just about getting property. That’s just one step of the journey.

There’s also the visa part – which one suits your needs? And what about your family? Are they coming too?

That’s why Portugal Homes is proud to be a one-stop shop for all your relocation needs to Portugal.

As part of the broader Harland & Poston Group, we:

Helped facilitate transactions in the +€500 million;

Currently own +€180 million in assets;

Have a 100% successful residency visa application rate;

Have several projects in development – both in Portugal and the ;

Offer unmatched to take care of you throughout the entire journey.

Our team pairs your finance plan with the right partners and the right property - that fit your risk and timeline.

We coordinate valuation, documents, and deed so your completion stays on track until you own your property in Portugal.

Mortgages in Portugal in 2025: A Complete Buying Guide for Foreigners

Portugal Homes

Current Mortgage Interest Rates in Portugal

Mortgages in Portugal in 2025: A Complete Buying Guide for Foreigners

Portugal Homes

Current Mortgage Interest Rates in Portugal

Taking Out a Mortgage in Portugal in 2026

How Banks Price a Mortgage in Portugal

Fixed, Mixed, or Variable Interest Rates: What’s the Difference?

Fixed Rate Mortgages

Variable Rate Mortgages

Mixed Rate Mortgages

Mortgage Conditions: What Affects Your Personal Quote in Portugal?

Documentation Required When Taking Out a Mortgage in Portugal

Portuguese Mortgage Costs & Fees

Step-by-Step Guide: How To Take a Mortgage in Portugal

Why Buy with Portugal Homes

Frequently Asked Questions about Mortgages in Portugal

1. What is the mortgage interest rate in Portugal right now?

2. What are mortgage rates in Portugal for new loans?

3. Can foreigners take a mortgage in Portugal?

4. What is the maximum LTV for foreigners in Portugal?

5. What benefits do foreigners get when taking out a mortgage in Portugal?

6. Can retirees take out a mortgage in Portugal?

7. Why do my quotes differ from the averages?

Portugal Homes

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