How Much Deposit Do You Need to Buy a House in Portugal?
How much deposit Portuguese banks ask for, how it differs for non-residents and residents, and the taxes and costs you need on top, with a worked example.
The short answer: as a non-resident, plan for a deposit of 20% to 30% of the purchase price, depending on the bank and your profile, always subject to bank approval. Residents with Portuguese income usually need less. And the deposit is not the whole bill: taxes and purchase costs come on top.
What decides your deposit
Banks set the deposit from your profile, not from a single rule:
- Residency and income. Non-residents and buyers with income in another currency are usually asked for a larger deposit than residents with Portuguese income.
- Property use. A main home, a second home and a property to let are assessed differently.
- Purchase value. For purchases of €1M and above, each bank assesses the case individually and the deposit can be higher.
- Bank valuation. The bank lends against its own valuation within its rules. If the valuation comes in below the price, you cover the gap with more of your own money.
Taxes and costs come on top
The deposit is your share of the price. You also pay the purchase taxes and costs, and banks do not finance these:
- IMT (property transfer tax): non-residents pay a flat 7,5%; Portuguese tax residents pay the progressive tables, lower on an own permanent home. Use our IMT calculator.
- Stamp duty of 0,8% on the purchase, and 0,6% on the mortgage amount for loans of 5 years or more.
- Notary, registration and bank set-up costs.
Worked example
A 350.000 € home, non-resident buyer, 30% deposit, assuming the price is not below the tax value (VPT):
- Deposit: 105.000 €
- Mortgage: 245.000 €
- IMT: 7,5% × 350.000 € = 26.250 €
- Purchase stamp duty: 0,8% × 350.000 € = 2.800 €
- Mortgage stamp duty: 0,6% × 245.000 € = 1.470 €
- Cash needed before notary, registration and bank costs: 135.520 €
The full breakdown is in our guide to purchase taxes for non-residents and on the cost of buying property in Portugal.
Before you make an offer
- Keep a buffer for a possible valuation gap.
- Be ready to show where your deposit comes from: banks ask for proof of the source of funds.
- If your income is in another currency, check early which banks accept it and how they treat exchange risk.
Want to know your own number? Estimate your mortgage or book a free consultation and we will tell you which banks fit your profile and what deposit they are likely to ask for.