Buy-to-let mortgages in Portugal

Can a non-resident get a buy-to-let mortgage in Portugal?

Yes. Portuguese banks lend to non-resident buyers purchasing property as an investment, and residency is not a requirement. What changes compared with a home you intend to live in is the deposit, the way the bank assesses affordability, and which lenders will consider the case at all.

Not every bank has the same appetite for investment lending, and the ones that do treat rental income differently from one another. That difference is usually worth more than the headline rate.

How much deposit do you need?

Expect to put down more than on a home you intend to live in. There is no single figure, and anyone quoting one without seeing your case is guessing: it moves with the lender, with your tax residency, and with how the rest of your profile reads. Two banks looking at the same purchase routinely ask for different amounts, which is why comparing them matters more on an investment purchase than on a standard one. We come back to you with the actual number for your case before you commit to anything.

Remember the deposit is not the only cash you need up front: purchase taxes, notary and registration costs sit on top. Our buying-costs calculator gives you the full cash figure.

How do lenders treat the rental income?

Banks do not simply add the expected rent to your income. Typically only a portion is counted, and your existing commitments are assessed alongside it, so the property has to stand up on your overall profile rather than on the rent alone.

Each lender decides how much of the expected rent to count and applies its own affordability rules on top, alongside your existing commitments. Some want a signed lease before they will count anything; others will work from a market estimate. The practical consequence is that the same property, with the same numbers, can pass at one bank and fail at another. Knowing whose arithmetic your case fits is most of the work.

Long-term letting or Alojamento Local?

How you intend to rent the property matters to the lender. A long-term lease with a signed contract is the most straightforward case. Short-term letting under the Alojamento Local regime is treated more cautiously, because the income is seasonal and the licensing rules vary by municipality.

Licensing is decided municipality by municipality, and several have restricted new registrations in areas under pressure. Before lending on a short-term rental purchase, a bank will want to know the property can actually be licensed where it stands. Check the municipality’s current position on new registrations early: it can change what the property is worth to you, and whether a lender will finance it at all.

What it costs

The purchase taxes are the same as for any residential purchase, and depend on your tax residency rather than on what you intend to do with the property. See IMT and property purchase taxes for the detail, including the flat rate that applies to non-residents.

On the income side, rental income earned in Portugal is taxable in Portugal, and how it is taxed depends on the regime you elect and on your own tax residency. That is a question for a tax adviser rather than a mortgage one, and it is worth settling before you buy rather than after, because it can change whether the investment works at all.

How we help

We are a regulated mortgage intermediary. We take your profile to the lenders whose criteria actually fit an investment purchase by a non-resident, compare what each will offer, and handle the application through to the deed.

Related: other mortgage solutions · mortgages for foreigners and non-residents · non-resident mortgage FAQ