Buying in Portugal as an American

Portuguese banks lend to Americans. Nationality is not the deciding factor — residency is. A US buyer who has not yet moved to Portugal is treated as a non-resident, with tighter loan-to-value limits and a more conservative reading of income.

One important difference from the US market: the loan is always in euros, terms are usually shorter than the 30-year American standard, and there is no equivalent of a nationwide credit score. Banks build their own picture from your documents.

Expect financing of 60% to 80% of the purchase price or the bank valuation, whichever is lower. That means a 20–40% deposit, plus acquisition costs. If you move your residency to Portugal, the same banks can go to 90% — worth planning around if a move is already on the cards.

Banks recognise dollar income, but apply a haircut for currency risk. Self-employment, RSUs, bonuses and rental income each need two years of history and are weighted conservatively. Repayments are in euros, so build exchange-rate movement into your budget rather than assuming today's rate.

• Passport and a Portuguese tax number (NIF) — obtainable remotely.
• Last two federal tax returns (form 1040), with schedules if self-employed.
• Recent pay stubs or W-2s, and six months of bank statements.
• A credit report from a US bureau.
• FATCA and source-of-funds declarations when opening the Portuguese account.

FATCA reporting makes some banks slower with US clients than with other nationalities — one reason to approach several at once rather than one at a time.

Since 2026, property that will not be your primary residence is taxed at a flat 7.5% IMT rate. Add 0.8% stamp duty on the purchase, 0.6% on the loan, plus notary and registration fees. Run the whole figure in the mortgage simulator before you commit.

Two to six weeks from a complete file to a formal offer, then a few weeks to the deed. US applicants most often lose time on apostilled documents and bank compliance checks, so start early and send everything in one batch.

We are an independent credit intermediary registered with Banco de Portugal. We work in English, present your file to the main Portuguese banks simultaneously, and negotiate the full cost — rate, spread, insurance and fees. Our service is free for you: the bank pays our fee.