Search
  • Aureia Consulting

"Can I get it?" - Bank loan basics in Portugal

Portugal is still more and more popular. Lately the USA picked up on the Golden Visa opportunity- and many people come here / aim to come here for early retirement. Many of these buyers would like to buy with a loan - and utilise their cash in other activities.


What is the process to apply for a loan in Portugal - and what are the numbers?


Bank loan process


1. Opening the account

  • Open an account (Portuguese NIF needed)

  • Either Portuguese lawyer signed with POA personally. Or local lawyer prints and clients sign at hometown, send the scanned signed versions to the bank via email, then send the originals via DHL.

2. Credit approval

  • Credit report or 3 months extract of bank account

  • Income statement from employer / Pay slip

  • Last year’s tax report

  • Passport and/or ID

  • Marriage regime


3. Insurance

  • For non-residents only property insurance is needed - for residents property and life insurance

  • Either an approved outsider insurance OR working with the bank's insurance directly

4. Property evaluation

  • Outsider company evaluates the property - takes around a week for the report to arrive - about 350€ (cost included in stimulation)

  • Final credit amount specified, credit granted

  • Final deed signature for property and loan - the bank is present, as well at notary

General spread examples


In my experience, of course depending on financial climate and the bank itself, it is possible to get a loan for only around 1,2-1,9% for residential properties.

For commercial properties the numbers are a bit higher: I saw spread examples around 3%.


Bank loan amounts


Non resident for properties under 300k:

50%

Non resident for properties over 300k:

75%


Residents primary home :

90%

Residents secondary home:

80%