Buying property in Portugal — financing for non-residents
Portugal lends to non-residents more generously than Spain — up to 80 % loan-to-value. From the Algarve through Madeira to Porto: the regions, the process, and what the financing really costs.
In short
Up to 80 % loan-to-value, above the Spanish ratio
Up to 80 % of the purchase price or the bank's avaliação — one of the most attractive ratios in southern Europe, clearly above the Spanish one (up to 70 %).
Around 10 % on top of the price
Around 10 % in incidental costs — IMT, notary, land registry, lawyer. For non-residents a flat IMT of 7.5 % on residential property since 25 May 2026, due before the deed.
The CPCV binds harder, and IMT is due before the deed
The CPCV binds harder than the Spanish arras, the IMT falls due before instead of after, and Casa Pronta bundles deed, tax and land registry into one appointment.
How high is the loan-to-value in Portugal for non-residents?
Up to 80 per cent of the purchase price or the bank's valuation (avaliação) — clearly above the Spanish ratio of up to 70 per cent. Portuguese banks therefore lend at one of the highest ratios in southern Europe. Discounted fixed rates currently run at 3.40 to 3.65 per cent, and a premium of roughly 0.9 percentage points against Spain is usual (bank survey September 2026, updated quarterly). Three focus regions are on offer: the Algarve for the premium segment and holiday letting, Madeira with its mild climate all year, and Porto for urban everyday life at noticeably lower prices per square metre than Lisbon. Transfer tax (IMT) for non-residents has stood at 7.5 per cent since the reform of 25 May 2026, whichever region you choose. We advise settling what is financeable before the CPCV preliminary contract is signed. Which region fits your plan depends on use and budget — we advise on that before the first property search.
Up to 80 % loan-to-value — one of the highest ratios in southern Europe
Portuguese banks lend non-residents up to 80 % of the purchase price or the bank's valuation (avaliação) — clearly above the Spanish ratio of up to 70 %. A premium of roughly 0.9 % against Spain is usual. Discounted fixed rates currently run at 3.40 %–3.65 %, without the discount at 4.15 %–4.40 % (source: Perini’s own bank survey (as at September 2026); 12-month Euríbor: Banco de España / EMMI, checked 07.09.2026).
Property in Portugal — the three focus regions
How buying in Portugal differs from Spain
The Portuguese preliminary contract (CPCV) binds harder than the Spanish arras — the disadvantaged side can enforce performance in court, not merely claim money back. The IMT (transfer tax) falls due before the deed, not after it as the Spanish ITP does; for non-residents a flat rate of 7.5 % has applied to residential property since 25 May 2026. A state one-stop service, Casa Pronta, can bundle the deed, the tax and the land registry entry into a single appointment.
Portuguese mortgage: requirements
Documents, creditworthiness, loan-to-value — the full checklist.
Mortgage rates in Portugal
Fixed rates with and without the bonificação — at the lower end roughly 0.9 pp above Spain, in return up to 80 % loan-to-value.
Frequently asked questions about Portugal
A house or an apartment in Portugal — which is easier to finance?
How high is the loan-to-value in Portugal for non-residents?
Which region in Portugal suits me?
How does the purchase process differ from Spain?
What does the purchase cost on top of the price?
Portugal: settle the financing before the region
Tell me your budget and your equity — I tell you which region and which bank fit your case.
All regions: Spain & Portugal at a glance