Reference
Portuguese mortgage glossary
The terms banks, notaries and brokers will use — explained in plain English.
- LTV (Loan-to-Value)
- The loan amount as a percentage of the lower of the purchase price and the bank valuation. Portuguese residents can typically borrow up to 90% for a primary home; non-residents usually 60–80%.
- DSTI (Debt Service-to-Income)
- The share of your net monthly income absorbed by all credit repayments, including the new mortgage. Banco de Portugal caps it, and banks apply it to a stress-tested payment. In Portuguese: taxa de esforço.
- DCR (residual income)
- The amount a household has left to live on after all repayments. Banks look at it alongside DSTI, because the same ratio leaves very different sums at different income levels.
- Euribor
- The euro interbank reference rate used as the index for variable-rate mortgages in Portugal, usually at 3, 6 or 12 months.
- Spread
- The bank's own margin added on top of Euribor. It is fixed for the life of the loan and is the part of the rate that can be negotiated.
- TAN
- Taxa Anual Nominal — the nominal annual interest rate of the loan, i.e. index plus spread, or the fixed rate.
- TAEG
- Taxa Anual de Encargos Efetiva Global — the all-in annual cost of the loan, including interest, fees and mandatory insurance. The best figure for comparing offers.
- Mixed rate
- A rate fixed for an initial period (commonly 2 to 5 years) that then becomes variable, indexed to Euribor plus spread.
- IMT
- Property transfer tax paid by the buyer before the deed. Progressive for Portuguese tax residents; a flat 7.5% for non-residents since 2026.
- Imposto do Selo (stamp duty)
- 0.8% of the purchase price, plus 0.6% of the loan amount on the mortgage itself.
- CPCV
- Contrato Promessa de Compra e Venda — the promissory purchase contract signed before the deed, usually with a deposit of 10–30%.
- Escritura
- The final deed of sale, signed before a notary or at a Casa Pronta office, when the bank releases the loan.
- FINE
- Ficha de Informação Normalizada Europeia — the standardised European information sheet every bank must give you with a mortgage offer.
- NIF
- Número de Identificação Fiscal — the Portuguese tax number required to buy property, open a bank account and apply for a mortgage.
- Caderneta predial
- The property's tax registration document, showing its tax value (VPT) and owner.
- Certidão permanente
- The land registry certificate confirming ownership and any charges or mortgages on the property.
- Licença de habitação
- The habitation licence confirming a property can be lived in. Required for the bank to release the mortgage.
- IMT Jovem
- An IMT and stamp duty exemption for Portuguese tax residents aged 35 or under buying their first primary home, up to set price thresholds.