Before you buy in Portugal: the tips I give every client

A pre-approval is a bank's first assessment of your file, based on your real documents. Getting it before you fall for a property matters for three reasons:

• You learn your real budget. Not what an online calculator says — what a Portuguese bank is actually willing to lend you.
• No surprises about your income. Portuguese banks don't all read foreign income the same way. Bonuses, commissions, self-employment, rental income and existing loans can be counted very differently from what you expect, and from one bank to the next.
• You don't lose the property to the clock. Once you've chosen the bank, pre-approval typically takes 1 to 2 weeks, and it's usually another 30 to 45 days to the deed. Starting the mortgage only after you've found the home can mean missing the seller's deadline — and the opportunity.

A pre-approval doesn't commit you to the bank, and it makes your offer more credible to sellers and agents.

The NIF (Número de Identificação Fiscal) is required before a bank will even start your pre-approval, so it should be one of the first things you arrange. A Portuguese bank account, on the other hand, is not needed for the pre-approval — it comes later in the process.

Non-residents usually get their NIF through a lawyer acting as their representative. I work with trusted law firms that handle this regularly. These are unpaid partnerships: I receive nothing for the referral — it simply gets your process moving sooner. Just ask.

In many countries, lenders look at a single number. Portugal doesn't use a credit-score system. A Portuguese bank needs your complete credit report, showing every credit you currently have — mortgages, car loans, personal loans, credit cards, overdrafts — with the outstanding balance and the monthly payment of each one. That's what it uses to calculate how much of your income is already committed.

A score on its own (for example, "780") tells a Portuguese bank nothing it can use. Examples of where to get the full report:

• UK: your statutory credit report from Experian, Equifax or TransUnion
• United States: the full reports from annualcreditreport.com (not just a FICO score)
• Germany: your free SCHUFA data copy (Datenkopie)
• Netherlands: your BKR registration overview
• Sweden: a recent credit report from UC

For other countries, ask me and I'll tell you which document the banks accept.

For the bank's analysis and the pre-approval, a free machine translation of your documents is accepted. Here's the quickest way, on a computer:

1. Go to translate.google.com (in your own language).
2. Choose the Documents tab at the top of the page.
3. Leave the source language on Detect language and set the target to Portuguese or English, as I ask.
4. Upload your document (PDF or Word).
5. Click Translate, then Download translation.

Always send the original together with the translation.

Heads-up: after pre-approval, some banks ask for certified translations before they issue the formal approval letter. This depends on the bank. As soon as we choose your bank, I'll tell you whether it will need them — so you can arrange them early and they don't delay the deed.

For non-resident buyers, banks usually finance 70% to 80% of the lower of the purchase price or the bank's valuation. So plan on a deposit of at least 20% to 30% — then add:

• Taxes: IMT and stamp duty, paid before the deed. Since May 2026 non-residents pay a flat 7.5% IMT. Calculate your taxes.
• Other completion costs: valuation, registration, the deed and bank fees — typically 750 € to 1,500 €.
• A safety margin in case the valuation comes in below the price (see "Before you sign").

Portuguese mortgages are issued and repaid in euros. If you earn in pounds, dollars, krona, krone or złoty, your monthly payment will move with the exchange rate — and some banks apply extra caution to foreign-currency income when they assess what you can afford.

Keep a margin in your budget, and see what the payment looks like in your currency with the mortgage simulator.

The CPCV (Contrato-Promessa de Compra e Venda) is the contract you sign before the deed, usually with a deposit paid to the seller. Under Portuguese law, if the buyer fails to complete, the seller normally keeps that deposit.

• Include a finance clause: if the bank doesn't approve the mortgage, you get your deposit back.
• Set a realistic date for the deed: count on 1–2 weeks for pre-approval and 30–45 days from pre-approval to the deed — plus time for any certified translations. Deadlines that look fine on paper are often the ones buyers miss.
• Ideally, sign only once you have a pre-approval.
• Have a lawyer review the CPCV before you sign. It's a legal document, and this tip is not legal advice.

Before approving, the bank sends an independent valuer to the property. The loan is calculated on the lower of the price or the valuation. If you agree to pay 400,000 € and the valuation comes in at 370,000 €, an 80% loan is 296,000 €, not 320,000 € — and you need to cover the 24,000 € difference yourself.

It happens most often in fast-moving areas and with renovated properties. Keep a cash margin, and talk to me before you agree a price well above the asking market.

IMT (property transfer tax) and stamp duty are paid before the deed, in cash. Since 25 May 2026, buyers who aren't Portuguese tax residents pay a flat 7.5% IMT on residential property. Part of it can be claimed back if you become a tax resident within 2 years, or rent the property at a moderate rent — but only if you apply within 6 months.

Portuguese banks offer variable rates (Euribor plus a spread), mixed rates (fixed for the first years, then variable) and, at some banks, fully fixed rates. The right choice depends on your budget, how long you plan to keep the loan, and how much payment risk you can live with.

Between pre-approval and the deed, keep your financial life as boring as possible:

• no new loans, credit cards or car finance;
• no change of job or contract, if you can avoid it;
• no large transfers you can't document;
• no missed or late payments on anything.

Any of these can change the bank's assessment at the last moment. If something unavoidable comes up, tell me straight away — it's much easier to manage early.

Portuguese banks are legally required to confirm the origin of the money you put into the purchase. Keep a clear trail: savings (account statements), the sale of a property (deed and proceeds), a gift or an inheritance (supporting documents). Transfers should come from accounts in your own name.

A strong file can be delayed simply because the deposit can't be traced. Prepare this early.

Portuguese banks require life insurance and home (multi-risk) insurance on a mortgage. You are always free to take out these policies with an insurer outside the bank.

But be aware: taking the insurance elsewhere can affect the price of the loan, because many banks tie part of their spread discount to products taken with them. A cheaper policy outside can end up costing more overall. I'll go through every option with you and show you which combination is actually the most advantageous.

Each country's documents work a little differently. I'm writing a step-by-step guide for each of the main countries my clients come from.

• Sweden: Can a Swedish Resident Get a Mortgage in Portugal?

More countries are coming. In the meantime, browse all articles.