Portuguese Mortgage Calculator
Estimate your monthly repayments and purchase costs.
Use this calculator to estimate monthly repayments for a property in Portugal. Please note that most non-resident buyers require a minimum deposit of 20–30% and must budget an additional 10–12% of the purchase price for taxes and fees, which cannot be added to the mortgage.
Buying a property in Portugal, whether a villa in the Algarve, an apartment in Lisbon, or a rural retreat, requires precise financial planning. Financing a property abroad is often significantly different from securing a mortgage in your home country.
Use our free Portuguese mortgage calculator to get an indicative guide to your monthly repayments.
Need a precise figure?
Calculator results are estimates only and should be used as a planning guide before speaking with a specialist. Lending criteria and subsequent interest rates vary by country and depend on an applicant’s overall personal financial profile, property location, property valuation, amount borrowed and loan-to-value (LTV).
The “Total Cost” Reality Check
In Portugal, you cannot add purchase taxes or legal fees to your mortgage. You will need cash for your deposit plus approximately 10–12% of the purchase price to cover IMT (Transfer Tax), Stamp Duty, Notary fees, and legal costs.
Understanding the true cost of buying in Portugal
If you are used to high loan-to-value (LTV) mortgages in your home country, the structure of a Portuguese mortgage can be surprising. To get an accurate picture of affordability, you must look beyond the monthly repayment.
- The “10–12%” Rule: Banks in Portugal generally do not finance the taxes and fees associated with the purchase. You must fund these yourself, in cash, in addition to your deposit. This covers IMT (Property Transfer Tax), Stamp Duty, and legal fees.
- Source of Funds: It is critical to note that your deposit and any setup costs must come from existing savings or resources, not from additional borrowing (e.g., a loan against your main home), as this affects your debt-to-income ratio.
Key Variables: How Portuguese Mortgages Work
Portuguese mortgages for non-residents typically offer loan-to-values (LTV) of 70–80%. Affordability is calculated on your net recurring income only; potential rental income is generally excluded from this calculation.
Key lending criteria for non-residents
When entering figures into the calculator, use realistic variables. Portuguese lenders often operate with stricter criteria than many domestic high-street banks.
Loan-to-Value (LTV) limits: While residents may access higher LTVs, non-resident buyers (including expats and international investors) should expect a maximum LTV of 70–80%.
Affordability (Debt-to-Income ratio): Lenders focus heavily on your Debt-to-Income (DTI) ratio. Generally, your total committed monthly outgoings (including your home mortgage, loans, credit cards, and the new Portuguese mortgage) must not exceed 30–35% of your net monthly recurring income.
Important: Unlike in many other countries, rental income from the new property is not included in affordability calculations. You must be able to afford the mortgage solely on your existing personal income.
Interest rates: Rates are typically linked to the Euribor (Euro Interbank Offered Rate) plus a bank margin. Fixed rates are available and can provide certainty in your monthly outgoings, protecting you from future market fluctuations. Tip: Consider speaking to a currency exchange/fx specialist to lock in your deposit exchange rate.
Age limits: Most lenders require the mortgage to be fully repaid by age 75, although some may extend this to age 80 depending on the applicant’s profile and pension income.
The availability of fixed or variable options depends entirely on lender policy at the time of application and should not be assumed.
How Simon Conn can help
Involved in the overseas property market since 1982, Simon Conn works with overseas lending sources that understand local mortgage requirements. We recommend a “triad of independence”: an independent lawyer, an independent valuation, and professional translation of all contracts.
Independent advice for cross-border buyers
Securing a mortgage in Portugal involves navigating a different legal system, language barriers, and specific documentation, such as the Caderneta Predial and fiscal numbers (NIF).
We help you avoid common pitfalls by ensuring you have the right professional support:
- Independent legal advice: Never use a lawyer recommended solely by the seller or agent. You need someone acting exclusively for you to check for debts, liens, or illegal construction.
- Independent valuation: Banks conduct valuations for their own security, but these are not structural surveys. We always recommend an independent valuation to check the property’s true condition.
- Professional translation: Ensure you know exactly what you are signing. Do not rely on verbal translations or automated apps for binding contracts.
The “Subject to Finance” Clause: Always ensure your independent lawyer inserts the wording “subject to mortgage finance” (or similar local equivalent) into the Promissory Contract (Contrato de Promessa de Compra e Venda) before any deposit is paid. This protects your deposit if your mortgage application is declined or if the property is down-valued.
Frequently asked questions
Can I get an interest-only mortgage in Portugal?
Interest-only mortgages are rarely available to the mass market in Portugal. Most offers for non-residents will be on a capital repayment basis. Interest-only options are typically available only to Private Banking clients with higher loan amounts (e.g., €1.5 million+).
What is the minimum loan amount?
Generally, the minimum loan amount for a non-resident mortgage in Portugal is €90,000, usually requiring a minimum property value of around €150,000.
Do I need a Portuguese bank account?
Yes. You will generally need to open a Portuguese bank account to set up direct debits for your mortgage repayments and utility bills.
Does rental income count towards my mortgage application?
No. Portuguese banks are conservative and will assess affordability based on your net personal income (salary, pension, dividends) only. Potential rental income is rarely considered.
Start your property journey in Portugal
Don’t rely on guesswork. Complete our simple assessment form to tell us about your property goals. We will analyse your eligibility and connect you with the most appropriate lending sources for your personal financial profile.
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