Portugal: A Country Worth Investing In
If you’ve seriously considered buying property abroad, Portugal is likely already on your shortlist. It offers a mild Atlantic climate, a stable economy, transparent laws, and, most importantly, the opportunity to purchase property as an owner — even without being an EU citizen.
A mortgage is one of the most popular ways for foreigners to acquire property. But how realistic is it if you hold a Ukrainian, Belarusian, or Russian passport? What pitfalls are most common? And is it even possible?
Let’s break it down step-by-step — without illusions and without exaggeration.
Is It Possible to Get a Mortgage Without Being a Citizen of Portugal?
The short answer is yes. In 2025, most major banks in Portugal actively work with foreigners, including those who do not yet have a residence permit but have a consistent history of income. For a Portuguese bank, the main factor is creditworthiness, not the passport you hold. Citizens of Ukraine, Belarus, or Russia can indeed apply for a mortgage if they:
- Have a stable and well-documented source of income (in the EU or outside it),
- Can confirm this income officially,
- Are not on sanctioned lists (for Russian citizens — this should be clarified individually),
- Are ready to make an initial down payment of at least 30% of the property’s value.
Additionally, you will need to obtain a residence certificate (certidão de residência) in Portugal — even if you do not have a residence permit, you must officially reside in the country.
Who Most Often Applies for a Mortgage and How Banks Evaluate Them
Non-residents with foreign income — the most complex, but not the most unreliable category. Here, the bank will carefully examine your salary slips, contracts, tax declarations, and income currency stability. If you work for a well-known international company or receive income from a transparent business, your chances increase.
Residents with a residence permit — are in a much better position. Even if income comes from outside Portugal, the very fact of having a NIF number, a registered address, the ability to pay taxes, and later file a tax declaration in Portugal is a strong advantage in your favor.
Freelancers and entrepreneurs — a special category. It’s important to have officially registered entrepreneurial status (Recibo Verde, FOP, or company), a tax number, and to regularly pay social security contributions and taxes.
Pensioners can also apply for a mortgage if they receive a pension from the EU or other countries, regardless of age: some banks issue mortgages even to those over 75.
How the Mortgage Process Works
The path from the idea to obtaining a mortgage in Portugal can be divided into 6 stages:
1. Initial Contact
You choose a bank or mortgage broker and share your goals. At this stage, a preliminary financial assessment takes place. If your chances are high, you proceed with document collection.
2. Pré-aprovação — first indicative agreement
Pré-aprovação is not a document, a contract, or guaranteed approval. It is the bank manager’s preliminary opinion: based on basic data (income, age, type of employment), the bank manager may say that your application is likely to be approved. This kind of forecast is more of a planning tool than a commitment from the bank.
It is important to understand that pré-aprovação has no expiration date and does not give you any legal rights. It only gives you a general idea of the amount you might potentially count on, and whether it makes sense to spend time searching for a property worth €500,000 if the bank is more likely to offer no more than €300,000.
After this forecast stage, the real work begins: collecting the full set of documents, checking them by the financial and legal departments of the bank, and risk assessment. Only after this does the client receive the final mortgage approval, which specifies:
- the exact loan amount,
- term,
- interest rate,
- mandatory conditions,
- list of costs (insurance, fees).
And this final decision is the one that actually “counts” — usually valid for 3 months. During this time, the client can sign the CPCV, wait for the property valuation, finalize the deal and receive the money.
Conclusion: pré-aprovação is not a green light, but rather a headlight in the fog. It is pointless to begin the path without it — you just won’t know where you’re going and what to expect.
3. Property search
You can search for a property with an agent or on your own. But it’s important: if you already have terms pre-agreed with the bank, sellers and agents will take you more seriously.
4. Property appraisal by the bank
After signing the preliminary sale agreement (CPCV), the bank sends an independent appraiser to evaluate the property. This valuation affects the final financing amount.
5. Final agreement of terms
If the property is approved by the bank, the final phase begins: submitting all documents, verifying data, agreeing to the contract terms.
6. Signing the contract and loan disbursement
At this stage, the notary, insurance company, and, in most cases, a lawyer are involved. After signing the mortgage and purchase-sale agreements, funds are transferred to the seller — you officially become the owner.
Documents you need to prepare
The list of documents required for a mortgage application depends on your status — whether you’re a contract employee, freelancer, entrepreneur, or retiree.
However, there is one key point that is important to know in advance. At the stage of preliminary approval (pré-aprovação), banks usually ask only for basic documents — passport, income, tax number (NIF), and residence document. This creates the illusion that the process is simple and fast. In practice, most clients are asked for the full package almost from the start, which can lead to stress and delays. Why?
- Banks always check your actual representation of income and your creditworthiness.
- You may get better approval terms immediately (rate, amount, term).
- Reduces the risk of delays or unexpected rejection at the final stage.
So our advice: gather the full set of documents even before submitting your first application — it will save you time, money, and nerves.
Below is a list of documents that banks usually require for two of the most common categories of borrowers.
For employees with a contract:
- Passport
- Residence permit (Visto de Residência / Título de Residência)
- Proof of address (utility bill or rental contract)
- Tax declaration (IRS)
- Tax statement (Nota de Liquidação)
- Payslips for the last 6 months
- Statement from the employer confirming employment
- Employment contract
- Bank statements for the last 6 months
- Credit report from Portugal (Mapa de Responsabilidades — from Banco de Portugal)
For entrepreneurs and freelancers:
- Passport
- Residence permit
- Proof of address
- Tax declaration
- Tax statement
- Receipts confirming freelancer income / recibos verdes
- Statement from the client (if working via a platform)
- Profit and loss report / contract for the past 12 months
- Bank statements for the last 6 months
- Credit report from Banco de Portugal
- In some cases — financial reports if you receive income to a legal entity account
If you submit documents from Ukraine, Belarus, or Russia, banks may additionally request:
- Translations of all documents, certified by a sworn translator
- Apostille on documents from your country
- Certificate of no sanctions or restrictions (especially for Russian citizens)
Under what conditions do banks issue mortgages to foreigners
Minimum down payment: why 30% is most commonly requested
For foreign clients, especially non-residents, banks in Portugal most often require a minimum down payment of 30% to 50%. This is due to balanced risk management: when there is no long-term financial history in the country, the bank protects itself with a lower loan-to-value ratio. For residents with a residence permit or permanent residence, a 20% down payment is possible, but only with stable income in the country and tax residency.
The lower the down payment — the lower your chances of approval and the better the conditions: interest rate, fees, term.
Maximum mortgage term — until what age can a loan actually be issued
The maximum mortgage term in Portugal depends not only on your payment capacity, but also on your age at the end of the loan term. Most banks set a retirement age limit of 70–75 years, so if you are over 50, the maximum term will be 20–25 years.
Fixed vs. variable rate: how to choose and what’s more profitable in 2025
As of 2025, the average variable rate on mortgages in Portugal is around 3.8%, depending on the borrower’s profile, loan amount, income, and loan duration. This rate is linked to the Euribor index (usually 6 or 12 months) and market fluctuations.
A fixed rate is more often set for 2–5 years, after which the rate is adjusted. It is usually higher (around 4.1–4.3%), but offers predictable payments. A variable rate depends on market trends and can either save or cost more in the long term. Most Portuguese banks assess the property’s risk and use a variable rate by default. If you want stability and are not ready to monitor the Euribor rate — choose a fixed rate.
Maximum financing percentage
For non-residents, banks usually finance 60–70% of the appraised value of the property. Important: the appraised value, determined by an independent assessment, may be lower than the market value, especially for newly renovated properties.
For residents with a residence permit (residência) — the limit can reach 80–85%, especially if the property is for personal residence.
Additional Expenses: Insurance, Fees, Commissions
A mortgage is not just the rate and down payment. Real expenses include:
- Life insurance (mandatory) — from €20 to €50/month
- Property insurance (mandatory) — from €100/year
- Loan opening commission — from 0.5% to 1% of the loan amount
- Notary fees and registration — approximately €1,000–1,500
- Stamp duty (IS) — 0.6% of the loan amount
What Influences Approval
The bank assesses your financial profile based on:
- Income stability — the longer you work or run your business, the better
- Currency of income — euros, pounds, or Swiss francs are preferred
- Personal contribution — a couple with joint income is considered more reliable
- History in the Portuguese banking system — a positive track record with accounts and payments helps
Can Everything Be Done Remotely?
Yes, remote processing is possible with a power of attorney for a representative in Portugal. You can send documents via e-mail, sign the power of attorney online (or at a consulate), and even close the deal remotely with support from a lawyer and a notary.
The Role of a Mortgage Broker
A broker is not just an intermediary. They are your strategist, who knows which bank is best for your case. Brokers usually work for a commission — from 0.5% to 1% of the loan amount (this fee is paid by the bank, not by the client). In complex cases, the broker is irreplaceable.
How to Choose a Bank: Myths, Traps, and Strategies
One of the most common mistakes — submitting an application only to the bank where you already have an account. Unfortunately, this does not guarantee a better offer — or even approval.
Here’s why:
- Banks are interested in new clients because they want to “upsell” their services
- Each bank evaluates income and non-resident risks differently
- Terms for interest rates, loan terms, and down payments can vary significantly
- Loan opening fees, insurance, and support also vary
- One bank may reject your application, while another — approve it with better terms
The most open banks to foreigners are — Millennium BCP, Novo Banco, Santander, Bankinter, as well as some regional banks. Often brokers submit applications to 2–4 banks to find the best offer.
If you’re from Ukraine, Belarus, or Russia?
Contrary to popular belief, Portuguese banks do not have official policies distinguishing by nationality. However, in practice, the place of income origin, country of residence, and the client’s current immigration status play a major role. This is especially relevant for citizens of Ukraine, Belarus, and Russia.
Ukrainian Citizens
Due to the association of the country with sanctions, Portuguese banks are more cautious when working with clients whose declared income comes from Ukraine, especially if the client does not live in Portugal full-time. Gaps in tax returns, lack of international financial transparency, and the absence of a reliable tax certificate — all this raises concerns for banks.
If you have a residence permit (ВНЖ), an active Portuguese bank account and confirmed income received from the EU, USA or other stable countries, your chances of mortgage approval are high. Especially if you work remotely for a foreign company, run a business in Europe or receive stable income in hard currency.
Belarusian Citizens
Belarusian citizens face similar difficulties as Russians: banks’ distrust in the source of income, additional document checks, and high scrutiny of declared creditworthiness. If your income comes from Belarus, the chances of approval are extremely low.
Having a residence permit and living in Portugal with stable income in euros or other stable currencies are key conditions for your application to be considered.
Russian Citizens
Since 2022, the majority of Portuguese banks have stopped approving mortgages for Russian clients whose income is based in Russia. In 2025, this situation remains unchanged: applications are reviewed individually and only if the client has:
- Portuguese or another European residence permit,
- Confirmed income from outside of Russia,
- Full transparency of income sources and proof of legality,
- No sanctions-related risks.
Even if these conditions are met, approval is not guaranteed — but the chances increase, especially the more solid the client’s financial and tax history from Russia is.
A mortgage is real. But the path requires strategy.
Getting a mortgage in Portugal is neither a marathon nor a sprint. It’s a carefully built journey where it’s crucial to understand the rules, avoid mistakes, and know how to negotiate with banks.
You can walk this path alone — or with our support. We accompany clients at all stages: from pré-aprovação to signing the contract and receiving the keys to the new home.
Want to buy property in Portugal with a mortgage — confidently and legally?
Contact us — we’ll help you choose the best strategy.
How we support clients at every stage
Getting a mortgage in Portugal is a complex process, especially if you’re abroad, don’t speak the language, and face a mix of bureaucracy and uncertainty. That’s why our team takes over the full coordination cycle — from the first consultation to signing the purchase and loan agreements.
Initial consultation and strategic assessment
At the first stage, we meet with you (online or in person) to understand your financial situation, immigration status, and goals. We discuss the chances of approval, how much the bank is likely to approve, and how your profile compares to current offers. This helps you avoid wasted time and chaotic actions.
Document collection and preparation
At this stage, we help collect every document, verify them, and highlight what’s missing. We explain what documents to request from employers, how to properly present your income and financial history. If needed, we help with translations and legalization — so that the bank doesn’t reject the application due to formalities.
Legalization and Compliance with Bank Requirements
Each bank has its own requirements: regarding format, validity period, and even the appearance of documents. We adapt the document package to specific bank requests, helping avoid delays at the verification stage.
Negotiations with Banks and Application Submission
We submit applications to several banks at once to compare conditions and increase your chances of approval. We negotiate with bank managers, promptly respond to their inquiries, clarify your situation, and secure the best possible terms.
Selection of the Optimal Offer
When banks send their offers, we don’t just forward them to you. We explain every line of the contract, compare the offers, and help you choose the most beneficial option: with minimal costs, a reliable bank, and the most suitable scheme for your situation.
Full Legal Support of the Deal
From the preliminary sale and purchase agreement (CPCV) to the signing of the mortgage and property purchase agreement with the notary — you can rely on us. We work only with trusted lawyers, monitor compliance with deadlines and obligations, and thoroughly control every part of the deal.
Common Mistakes and Pitfalls
1. Submitting an Incomplete Document Package
This is one of the most common reasons for rejection. Banks in Portugal will not “fill in the blanks” or request missing documents. If something is missing, the application is either frozen or rejected. It’s best to submit a complete and detailed package right from the start.
2. Inaccurate Income Information
Some clients try to “enhance” their income statements, especially freelancers and entrepreneurs. This is a risky strategy: banks verify income sources, bank account history, and tax declarations. Any inconsistencies may lead to rejection — one that cannot be reversed later.
3. Searching for Property Without Prior Bank Approval
Finding your “dream home” before knowing how much the bank is willing to lend — is a mistake. Without a clear understanding of your budget, it’s easy to go beyond your financial limits and run into trouble if the deal falls through. Always start with pré-aprovação and final agreement on conditions.
4. Ignoring Additional Expenses
Buying property in Portugal comes with many hidden or simply unnoticed at first glance costs: insurance, taxes, fees, notary charges. Many people only consider the property price and loan amount — and as a result, go over budget. Always calculate the full cost of the transaction in advance.
5. Lack of a Strategy for Interest Rate Increases
If you choose a variable rate, it’s important to understand: it may rise. An increase in Euribor will raise your monthly payments. Without a financial cushion and budget flexibility, this can become a problem. We help you estimate your “ceiling” and prepare a backup plan.
What to Do If a Mortgage Is Not Possible
Not every mortgage application is approved. But that doesn’t mean you have to give up on the idea of buying property.
Installment Plans from Developers
Some construction companies offer installment plans for 6–24 months — especially for properties at the early stages of development. However, such schemes carry higher risks and often come with price increases. Still, for some people, this may be the best option.
Mortgage in Your Home Country — But Not for Everyone
Sometimes it’s easier to get financing through your national banking system — for example, if you live in Germany, France, the UK, or Scandinavia — but plan to buy property abroad. This requires thorough preparation and often comes with less favorable terms than a local mortgage. But for some people, it can be a workable plan.
However, for citizens of countries with unstable banking systems, such as Ukraine, Belarus, or Russia, this path is practically impossible. Even if you have assets, banks in these countries:
- do not issue loans for property purchases abroad,
- do not process international transfers for such transactions,
- often restrict outbound payment operations,
- or simply do not work with foreign real estate as a loan target.
Therefore, this scheme is a viable tool only for residents of developed jurisdictions with access to reliable financial products, transparent reporting, and free capital movement.
Alternative Schemes
Rent-to-buy: you rent a property, and part of the rent is counted toward the future purchase. These arrangements are possible by agreement with private sellers.
Crowdfunding platforms: investment funds that allow participation in collective purchases. For private individuals, this model is still not widespread.
Special Cases and Important Nuances
Buying at the Construction Stage
When the property is not yet completed, the bank issues the loan in parts — based on the progress. This complicates the structure of the deal, requires more documents, and precise coordination with the developer. In addition, such a purchase carries more risks — technical, legal, and financial.
Buying with a Partner
You can purchase a property together — with a partner, spouse, or parent. In this case, the bank will consider the combined income. Choosing between joint or separate ownership (solidariedade vs separação) is an important legal issue that should be discussed with a lawyer in advance.
Taxes and Fees
- IMI — annual property tax, calculated based on cadastral value (usually 0.3–0.8% per year);
- Imposto do Selo — stamp duty: 6% of the purchase amount + 0.8% of the mortgage amount;
- Capital Gains — tax on capital gains at sale, if the property increases in value.
We recommend planning all these expenses in advance and including them in your budget.
Loss of Income After Purchase
If your income drops or you lose your job, the bank will not automatically cancel the loan. You are still obligated to make the payments. This is why it’s important to assess your financial situation realistically, choose a comfortable installment amount, and get insurance in case of loss of work from the beginning.
Conclusion
Obtaining a mortgage in Portugal as a foreigner is not a myth or an exception to the rule — it is a real opportunity if you approach the process wisely. The country remains open to investment and still offers competitive mortgage conditions — even for non-residents. But the reality is that access to a mortgage depends not so much on your citizenship as on the origin of your income, the presence of a residence permit, financial transparency, and understanding the rules of the game.
For citizens of Ukraine, Belarus, and Russia, this is especially relevant. Today, approval is nearly impossible without a residence permit, income in stable foreign currency coming from developed countries, and full compliance with bank requirements. Forecasts and preliminary promises from bank employees are not guarantees. Only after completing all stages — from initial assessment to final approval — can you rely on a real decision and start the transaction.
It is important to understand: banks will not adapt to the client. It is the client who must be 100% prepared — with a complete set of documents, a clear strategy, understanding of the budget, and all risks. Submitting an application to one bank just because you have an account there is as naïve as searching for property without first assessing your financial capacity. Choosing a bank, interest rate structure, insurance solutions, and the property itself — this is a system, not improvisation.
Yes, it is possible to go through this path independently. But mistakes at every stage can cost you time, deposits, approval, or even the entire deal. That’s why more and more clients choose professional assistance: not because they are incapable, but because they want to save months, tens of thousands of euros, and avoid mistakes that others have already made.
If you want to walk the path to your own home in Portugal with confidence, support, and in clear and honest conditions — we’re here for you.
Need help applying for a mortgage? Want to know how realistic it is in your particular case?
Contact us. We’ll help you choose a bank, prepare documents, negotiate, agree on the best conditions, and support you through the entire transaction — with attention, responsibility, and respect for your goals.
