Buying off-plan in Portugal is not the same transaction as buying a finished home. The property is paid for in instalments as it goes up, and a mortgage on a building that does not yet exist works differently from one on a completed flat.
How the payments are structured
The developer sets a payment schedule in the promissory contract (CPCV): typically a reservation fee, a deposit of 10–30% on signing, then instalments tied to construction milestones, with the balance due at the deed. Your own funds usually cover everything before completion.
When the bank actually releases money
Most Portuguese banks release the mortgage in a single payment at the deed, once the property has a habitation licence and can be registered as security. Staged release during construction exists, but it is the exception and generally reserved for self-build projects, with funds paid against a surveyor's report at each phase.
The practical consequence: the deposit and the stage payments come from your savings, and the loan arrives at the end. Budget on that basis, not on the assumption that the bank funds the build.
Approval validity and the completion date
A mortgage approval has an expiry date, usually a few months. On an off-plan purchase with delivery a year or two away, the file has to be re-approved closer to completion — at the rates and rules in force then, and with your income reassessed. Delivery delays are common, so plan for the possibility rather than treating the first approval as locked in.
What to check before signing the CPCV
- That the developer's payment schedule matches when your money is actually available
- Penalties and exit rights if delivery is late
- Whether the deposit is protected by a bank guarantee
- The construction licence and, at delivery, the habitation licence
- Whether the price includes finishes, parking and storage, or bills them separately
- Your IMT position: the flat 7.5% rate applies if you are not a Portuguese tax resident
Off-plan can be the best value on the market, but the cash flow is front-loaded and the mortgage arrives last. Get the financing verified before you sign the promissory contract, not after.