Every limit below was checked against the text of the official Recomendação Macroprudencial n.º 1/2026 (articles 4.º to 7.º and 11.º) on 2026-10-11, including the DSTI exception for up to 10% of each bank's lending per half-year (article 6.º n.º 2). Try your own numbers in the mortgage affordability calculator.
Portuguese banks do lend to non-residents. Each bank applies its own credit policy, but all of them work inside the macroprudential limits set by Banco de Portugal. Those limits changed in 2026: Recomendação Macroprudencial n.º 1/2026 applies to new consumer loans whose creditworthiness assessment takes place from 1 August 2026.
The limits, from the 2026 Recommendation
- Loan-to-value (LTV): up to 90% for buying, building or renovating your own permanent home; up to 80% for mortgage-backed loans for other purposes, which includes second homes and buy-to-let. The limit depends on what the loan is for. The 2026 text also removes an earlier exception that let banks lend up to 100% on properties they owned themselves.
- Debt-service-to-income (DSTI): lowered from 50% to 45% of income, counting all your credit repayments. Banks may exceed it for up to 10% of the total amount they lend in each half-year (article 6.º n.º 2).
- Maximum term: 40 years if the borrower is 35 or younger; 35 years if older. With several borrowers, the Recommendation sets which age counts. The old average-term target has been removed.
These are recommendations to banks, not rights for borrowers. A bank can be stricter, and many are stricter with non-residents and with income in a currency other than the euro.
What this means if you live abroad
- Non-resident buyers of housing generally pay a flat 7.5% IMT since May 2026 (DL 97/2026), so budget for it. See the IMT guide.
- Buying a holiday home or an investment as a non-resident is normally an "other purpose" loan, so expect at most 80% LTV. Plan for at least 20% plus taxes and fees from your own money.
- Banks generally measure LTV against the lower of the purchase price and the bank's valuation. If the valuation comes in low, the gap comes out of your pocket.
- The DSTI test counts all your debts, including loans in your home country. Foreign-currency income may be discounted for exchange-rate risk; ask each bank how it treats yours.
Stamp duty on the loan
A mortgage of five years or more pays stamp duty of 0.6% of the amount (item 17.1.3 of the General Stamp Duty Table), on top of the 0.8% on the purchase itself. On a hypothetical €200,000 loan that is €1,200. Stamp duty on interest and bank commissions comes on top.
Before you sign a CPCV
Get a written approval in principle and the standard pre-contract information sheet (FINE) from the bank, and make the CPCV conditional on the loan if you can. Interest rates and spreads change too often for us to quote. Compare FINEs side by side, looking at the TAEG (APR).
Frequently asked questions
What is the most a Portuguese bank can lend me?
Under Banco de Portugal's 2026 Recommendation: up to 90% of the property value for your own permanent home, and up to 80% for other purposes such as a second home or buy-to-let. Banks may lend less.
Source: Banco de Portugal, Recomendação Macroprudencial n.º 1/2026
What is the longest mortgage term?
40 years if the borrower is 35 or younger, 35 years if older, for loans assessed from 1 August 2026.
Source: Banco de Portugal, Recomendação Macroprudencial n.º 1/2026
Related reading
Sources
- Banco de Portugal, Recomendação Macroprudencial n.º 1/2026 — accessed 2026-10-10
- Tabela Geral do Imposto do Selo — Portal das Finanças — accessed 2026-10-10
This guide is general information, not financial, tax or legal advice. Confirm with Portal das Finanças, AIMA, Banco de Portugal or a qualified professional for your situation.