"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
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:
Non resident for properties over 300k:
Residents primary home :
Residents secondary home: