Mortgage credit for foreigners: What documents are required?

Home loan for foreigners: Different conditions?

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

The biggest differentiating factor is the maximum financing limit. For non-residents, banks only lend up to 80% of the property's value. Whereas for a national, the bank can lend up to 90% of the lower value between the acquisition and property evaluation.

However, note that, if the customer is European and has a Residence Certificate in Portugal (CRUE), or residence in Portugal and income declared in IRS, through banks, they can get a proposal equivalent to 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 home loan in Portugal is related to the repayment term. In Portugal, if you are under 30 years old, you can get a maximum term of 40 years, between 30 and 35 years old, a maximum term of 37 years, and over 35 years old, 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 within or outside of Europe.  

In any case, you can always turn to a Savings Minute credit intermediary to help negotiate conditions and gather all necessary documents.

What documents do I need to submit to the bank?

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

What differs are the documents confirming the income received by clients, as well as those ensuring that they have no occurrences of debt and non-compliance 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 contract housing credit in Portugal:  

• Identification document (passport and Portuguese tax identification number - NIF).  
• Proof of income and expenses (last income statement, 3 latest payslips or other proof of income, company balance sheet and last income statement in case of self-employed workers, proof of annual pension in case of retirees, monthly bank statements of the last semester, and proof of biannual payment of other financing);  
• Country's income credit bureau.
• Tax Return or Tax Notice from the country of current 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 application 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 residency 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.

It should be noted that it may be necessary to translate the documentation for the credit feasibility study, which can be done at the client'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 this. 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. This process can also be made easier through the mediation of an agent, such as those from Poupança no Minuto, who handle all the bureaucracy, doubts, and questions. With a free, fast, and assertive service, you can get your house in Portugal in the blink of an eye.