Even though the Golden Visa Portugal is one of the best ways of combining immigration with property investment, there are also many other opportunities to buy property Portugal that you can enjoy as a foreigner that may surprise you.
Portugal is welcoming foreign investors into their country with their arms wide open making things very easy for them in terms of living and doing business within their borders. One of the things that Portugal is making very easy for foreigners to do is to get a mortgage.
As of 2021, most Portuguese banks will jump at the opportunity to offer foreigners mortgages if they have given a 30% deposit on a property and if all their financial history is in order.
The mortgages these banks offer tend to be relatively normal to what Americans are used to as the average Loan to Value (LVT) is somewhere between 60 to 70%. Of course, these numbers vary depending on the size of the loans and the applicant’s credit history.
After you make the deposit for the commercial or personal real estate you purchased in Portugal the next thing you have to do is select the type of mortgage. Portugal offers two types of mortgages for you, fixed and variable rate.
With a Fixed Rate mortgage you pay at a constant period for what can be up to 30 years, as simple as that. The second option you have is the variable rate mortgage, in which the amount varies entirely on the interest rate available at the time.
If all of this sounds attractive to you then please contact us so we can start and guide you through the whole process. You will find that getting a mortgage in Portugal is no different than obtaining one from the United States, all you have to do is complete the following steps;
1. Have a Portuguese Banker complete an overview of your situation and assist in which is the best mortgage for you (our team can take care of this for you)
2. Submit all of the necessary documents
3. Do an evaluation on the property that you desire to purchase (we can also handle this for you)
4. Determine the amount of deposit you wish to make on the property, the average amount that most foreigners give is 30%
5. Complete the sale
6. Get all the remaining documents in order and give the final signature. After you have successfully completed all of these steps and have officially become a homeowner in Portugal the next thing you will have to do is see which taxes apply to you and what you can do to deduct these taxes.
Foreigners who own property in Portugal get taxed at an estimated flat rate of 28%. Most of the time you can deduct expenses such as repairs, maintenance, and other housing expenses, but you will need an approved Portuguese accountant to do that. We here at Global Citizen Solutions can help you in this matter without a problem.
The whole process of purchasing a property and getting a mortgage approved lasts approximately 2 months. This is of course depending on how fast you get the documents ready and approved. The following is a list of documents that you will need to present as a foreigner:
Copy of Passport
Proof of Address (Utility Bill)
Financial History Documents
Bank Statements
Credit History in good standing
Clean Bill of Health
Portuguese Tax Number
Reference letter from a bank in your home country
Letter from your current employee
If you are a Retiree you must show that you are receiving some sort of pension
Proof of Income
Getting a mortgage in Portugal is easy if you compare it to other jurisdictions, but depending on your situation it can also be a hassle. If you have any questions regarding this matter please feel free to contact any of the professionals at Global Citizen Solutions.
We will happily guide you through the whole process and get you the mortgage that fits best for you. Even though getting a mortgage as a foreigner in Portugal is relatively easy, we highly recommend our clients to take a look at the Golden Visa Program. A second passport opens many doors both in Portugal and around the world. Send us a message and we will happily make this happen.