Portugal's most attractive coast for foreign buyers — the best loan-to-value ratios in southern Europe (up to 80%). 300 days of sun, the mildest winter, lettable year-round.
On the Algarve, as across Portugal, the buyer pays IMT, Portugal's transfer tax, plus stamp duty (Imposto do Selo) of 0.8 %. Since 25 May 2026 a flat IMT rate of 7.5 % applies to buyers without Portuguese tax residence. The bank finances the purchase price, not IMT and incidental costs, which you cover from equity.
Not every bank lends against income in a foreign currency — we approach the ones that do. For the full evaluation, enter your income converted into euros.
Our brokerage focus starts at a loan amount of around €300,000 — we arrange smaller loans too and will give you an honest read on whether it makes sense in your case.
Estimate, no guarantee. The interest rate is the calculation basis for this example, not a market rate or commitment — the rate you actually achieve depends on your credit profile, the property and the bank. Portugal: max. 80 % LTV for non-residents. Purchase costs by region as on our purchase-costs page; the other items are guide values.
For Algarve property for sale, Portuguese banks lend non-residents up to 80% of the price or the avaliação.
The more expensive half. Premium resorts, golf locations, high-end villas with sea views. British and German premium buyers dominate. Prices per square metre: €4,000–8,000 per m² and above in prime locations.
Two typical Algarve scenarios — a holiday home in the west, an investment property in the east — to help you plan your own project.
Calculate your costs quickly: Pre-filled with typical values for this region — just adjust the figures and the calculation updates instantly; the region and tax rate are already set.
The West Algarve around Lagos, Vilamoura and Quinta do Lago is the pricier premium half at €4,000–8,000/m², while the East Algarve around Tavira and Olhão is quieter and considerably cheaper at €2,000–3,500/m².
Lagos, Vilamoura, Quinta do Lago: Prices per square metre run at €4,000–8,000/m² and more in top locations.
Anonymised examples of how German-speaking buyers have financed their property in the Algarve — from Lagos to Tavira.
Algarve: what you need to pay in addition to the purchase price: In the Algarve, non-residents are subject to the IMT at 7.5 % (effective from 25 May 2026), plus the Imposto do Selo at 0.8 % on the purchase price and 0.6 % on the loan. All of this must be paid from equity.
The cut-off date is important for the Algarve: older cost calculations and case studies show significantly lower purchase cost ratios because they date from before the IMT flat-rate was introduced. Anyone basing their planning on such figures is working on outdated data.
The second point: the stamp duty on the loan increases in line with the amount of financing — while a higher loan-to-value ratio reduces the equity required to cover the purchase price, it increases this cost. Both effects must be calculated together.
Porto (Region · Portugal): UNESCO World Heritage Site, university town, year-round rental market.
Madeira (Region · Portugal): Autonomous tax region with its own tax rates. Year-round climate.
Even in January rarely below 12 °C. 300 days of sun a year. Year-round lettability or personal use possible.
Rental yield 4–6% gross depending on location: East Algarve typically 5–6% due to lower purchase prices. West Algarve typically 3–5%. An AL licence (Alojamento Local) is required for tourist letting, regulated locally. Source: Portugal Buyers Agent Algarve Report 2026, cross-checked against Investropa's Algarve yield estimates. As at 03.08.2026 — market data changes; figures reviewed periodically.
Pre-filled with typical values for this region — adjust the figures and the result updates at once; the region and its tax rate are already set.
Everything the calculator does not show on the page: equity needed including purchase costs, every cost item, total interest and total cost — and, with your income, how much you can afford under the 35 % rule. We approach at least 2 of the 15–20 banks we work with for your case (31 in Spain, 14 in Portugal); which ones fit, we discuss in person.
Madeira — mortgage for non-residents (Region): Financing in the region.
Porto — mortgage for non-residents (Region): Financing in the region.
| Item | Amount |
|---|---|
| Equity | €135,000 (30%) |
| Mortgage | €315,000 (70%) |
| Purchase costs (~10%) | ~€45,000 (IMT+IS+notary) |
| Loan-to-value | 70% LTV (Portugal max. 80%) |
| Example payment (25 yrs, 3.65%) | ~€1,600/month |
| Bank type | Major Portuguese bank · non-resident |
| Item | Amount |
|---|---|
| Equity | €84,000 (30%) |
| Mortgage | €196,000 (70%) |
| Purchase costs (~10%) | ~€28,000 |
| Loan-to-value | 70% LTV |
| Example payment (25 yrs, 3.65%) | ~€1,000/month |
| Bank type | Portuguese bank · growing market |
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
Portuguese banks finance non-residents on the Algarve up to 80% of the purchase price or bank value (avaliação) — one of the most attractive LTV ratios in southern Europe.
West (Lagos, Vilamoura, Quinta do Lago): premium segment, €4,000–8,000/m², British and German premium buyers. East (Tavira, Olhão, Cabanas): quieter, €2,000–3,500/m², better rental yield.
Regulated locally. In Lagos and Albufeira there are partial restrictions (containment zones); in Tavira/Olhão they are largely freely available. We check the municipality's AL status before purchase.
We approach at least 2 of 15–20 institutions per case; several major Portuguese banks run their own non-resident programmes in the Algarve. Which one fits your case is settled in conversation.
Yes — the NHR tax saving was only one of many factors. Climate, loan-to-value, the rental market and quality of life remain just as attractive. Standard tax law is considerably more favourable than in Germany.
Planning a purchase on the Algarve? A free initial consultation in English — also German, French, Spanish, Russian. We review your situation and find the right bank in Portugal.
NIF, income proof, up to 80% LTV — what non-residents actually need.
Monthly payment, loan and purchase costs by region straight away; total cost and equity needed by email.
The CPCV, Casa Pronta and the 7.5 % IMT rate for non-residents since 25 May 2026.
Anonymised case reports on financing in the Algarve for non-residents in Portugal: how much a Portuguese bank lends, and why the valuation decides it.
Market analysis, loan-to-value and terms in the region.
Content by Siegfried Perini — local brand representative since 2019, active in real estate since 1992, entered in the German intermediary register (§ 11a GewO) as a person directly involved in brokerage and advice. Point of contact for German-speaking buyers in Spain and Portugal. Brokerage by Olga Nikushkina, mortgage credit intermediary under § 34i German Trade Regulation (GewO); in Portugal through a locally licensed intermediary.