Housing credit for immigrants: What are the conditions?

Are you Portuguese, living abroad, but want to buy a house in Portuguese lands? Go ahead, don't waste time: Poupança no Minuto takes care of all the bureaucracy. We will explain shortly the conditions you can access and the documentation you need to gather.

I am Portuguese living abroad. Can I buy property in Portugal?

If you are Portuguese and living abroad, it is possible to buy a property in your home country. However, conditions may vary from bank to bank due to the profile of the potential customer and their new project.

If you buy the property, but continue to reside abroad, you may face obstacles due to the insecurity of some banks regarding possible defaults or repayment difficulties. Some banks choose not to approve the credit, or propose less favorable conditions than to a resident.

In terms of access, it is easy to proceed with the process, since most Portuguese banks allow account opening remotely and handle most of the documentation for housing credit contracting by phone and digital means. And also because there are Portuguese bank branches in major cities abroad.

What are the requirements I must meet?

At the time of requesting approval for financing, there is no need to have a connection with the Bank of Portugal yet. However, in order to proceed with the hiring of a mortgage for non-residents, as a Portuguese emigrant, you must have an account opened in a Portuguese bank.

For being abroad, you can hire an emigrant statement account that will give you access to some benefits, products and favorable conditions. It can only be, initially, co-titled by the spouse, by those who live with the emigrant under similar conditions, or by the children.

Afterwards, the requirements will be the same as for a resident's housing credit. Banks take into account the client's financial context, considering the characteristics of the property, and may define more demanding credit conditions.

What housing credit conditions can they propose to me?

The home loan targeted at non-residents may have different limits defined, in terms of amount and financing period. These are the conditions that can differ the most compared to resident nationals.

So, while for a national residing in Portugal, banks finance between 80% to 90% of the value of a property, in their own and permanent housing, for emigrants the financing percentage may not reach those values. But everything depends on the banks.

On the other hand, European clients with a Certificate of Residency in Portugal (CRUE), or with residency in Portugal and income declared in the IRS, in some banks it is possible to have a proposal equal to that of national residents, for permanent own housing. Therefore, in this case, you can use your own capital in 10% of the property, if the bank approves the loan covering 90% of the value.

Regarding the financing term, as a Portuguese emigrant residing abroad, it can be shortened. Currently in Portugal, the following limits are set according to the borrowers' age:

• Customers under 30 years old may have a maximum contract length of 40 years;
• Clients between 30 and 35 years of age, with a maximum contract limit of 37 years.
• And clients over 35 years old, a maximum contract term of up to 35 years.

Depending on the bank, you may not be able to meet these deadlines, as they may offer you shorter deadlines, regardless of age.

In addition, depending on whether you live within Europe or not, the conditions offered by banks may vary.

What documents will I need for the non-resident housing credit?

As a rule, banks may request the following documents from non-resident clients for a mortgage application:

• Identification document (passport and Portuguese taxpayer ID number - NIF);
• Proof of income and expenses, such as:
• Last income statement;
• Three most recent payslips or other income proof.
• Company overview;
• Last income statement for self-employed workers;
• Proof of annual pension in the case of retirees;
• Monthly bank statements from the last semester;
• Proof of payment for other semester financing;
• Income country's responsibilities center;
• Tax Return or Avis D’impôt from the current country of residence.

Is it too much information? Leave it to the Poupança no Minuto. Through a free service, credit intermediaries can help you with all documents and negotiating conditions with banks. In an instant, you see the mortgage for your new home in Portugal completed.