Mortgage for foreigners: What documents are needed?

Foreigners credit housing: Different conditions?

A mortgage for non-resident foreigners has similar conditions to proposals for nationals, but certain aspects differ.  

The main differentiator is the maximum financing limit. For non-residents, banks only lend up to 80% of the property value. For nationals, the bank can lend up to 90% of the lower value between the purchase price and the property appraisal.

However, please note that, if the client is European and has a Certificate of Residence in Portugal (CRUE), or residence in Portugal and income declared in IRS, through banks, they can get a proposal equal to own and permanent housing for nationals. Thus, they may only have to provide 10% of the property value.

Another difference that foreigners may encounter when applying for a mortgage in Portugal is related to the financing term. In Portugal, if you are under 30 years old, you can get a maximum term of 40 years, between 30 and 35 years, a limit of 37 years, and over 35 years, a term of up to 35 years. However, these terms may be shorter for foreigners, depending on the bank.

Conditions may also vary depending on whether, as a foreigner, you reside inside or outside of Europe.  

In any case, you can always use a credit intermediary Poupança no Minuto to help you negotiate the terms, as well as gather all the necessary documents that we will see next.

What documents do I need to submit to the bank?

In order to continue with a feasibility study of mortgage credit for foreigners, banks require some documents, many of which are common with those required for nationals.

What differs are the documents that confirm the income received by customers, as well as those that ensure that they do not have occurrences of debts and defaults in the country where they live. This is because this type of documentation varies depending on the country of origin.  

In general, the following documents are required from foreign clients to take out a mortgage loan in Portugal:

• Identification document (passport and Portuguese tax identification number - NIF);  
• Proof of income and expenses (last income statement, last 3 payslips or other income proof, company balance sheet and last income statement for self-employed workers, annual pension proof for retirees, monthly bank statements for the last semester, and proof of semi-annual payment for other loans).
• Central repository of the country's income responsibilities.
• Tax Return or Tax Notice from current country of residence.  

Regarding the NIF, it is mandatory for foreign clients to obtain it in order to be able to contract a mortgage credit in Portugal. This is because this number will identify the citizen before the Portuguese government and respective tax authorities. The request for the NIF can be made at the Tax Authority by presenting proof of residence, passport, or identification document.

In this case, as you may not yet have a residence in Portugal, you will need to appoint a tax representative in the country temporarily in order to obtain the NIF and proceed with the purchase of the property.

Note that it may be necessary to translate the documentation for the credit feasibility study, which can be done at the customer's expense, depending on the bank. However, certain banks do not charge for this service.  

Regarding the process being able to be carried out digitally, instead of the foreign client having to go to the bank, there are banking institutions that also allow it. Also, if you have a legal representative, it is possible to proceed with the process through a power of attorney.

However, it is always recommended that foreign clients contact banks directly to understand the conditions being proposed to them. This process can also be made easier through the mediation of an agent, such as those at Poupança no Minuto, who handle all the bureaucracy, doubts, and questions. With a free, fast, and accurate service, you can get your house in Portugal in the blink of an eye.