What loan to value do Portuguese banks give non residents?

Two numbers decide how much a bank will lend you: the ceiling Banco de Portugal sets for every lender, and the lower figure banks actually offer buyers who live abroad.

The legal ceiling

Banco de Portugal's Macroprudential Recommendation 1/2026 applies to every loan whose affordability check takes place from 1 August 2026. It tells lenders to cap loan to value at:

1. 90 percent for a loan to buy your own permanent home;
2. 80 percent for any other purpose, which includes a second home or a flat you plan to let.

Loan to value is measured against the lower of the purchase price and the bank's valuation. If the valuer comes in below your price, the gap comes out of your pocket.

The same recommendation cut the debt service limit from 50 to 45 percent of net monthly income, counting every loan you hold, including a mortgage at home, and limits the term to 40 years if you are 35 or younger and 35 years above that.

What banks offer non residents

In practice, Portugal Buyers Agent reports 65 to 75 percent for non residents and 80 to 90 percent for residents, with variable rates at Euribor plus a spread, fixed rates, or mixed products that fix the first years. Foreign income, foreign tax returns and no Portuguese credit history all push you towards the lower end.

The cash on a 300,000 euro flat

At 70 percent, the bank lends 210,000 euros and you bring 90,000. If you are not yet a Portuguese tax resident, add IMT at the flat 7.5 percent rate in force since 25 May 2026 (22,500 euros), purchase stamp duty at 0.8 percent (2,400), mortgage stamp duty at 0.6 percent of the loan (1,260), a notary at 500 to 1,000 and registration at about 250. That comes to about 116,900 to 117,400 euros before legal fees, or 39 percent of the price.

The full list of closing costs, the IMT refund if you become resident, and the order in which to line up the bank and the CPCV are in our buying property in Portugal guide.