Portugal - Investment Finance

There are various financial options available when considering an investment in Portuguese property. Below are some of the main strategies used by investors today.


Property purchase in Portugal could be funded by personal cash resources but, as most investors prefer, mortgage or equity release schemes are widely available.

1. Mortgages

As part of a modern finance system running in accordance with EU regulations, banks in Portugal offer a wide range of well developed banking services. We will gladly point you in the right direction of Portuguese financial institutions to fund your investment and we have access to mortgages from many Portuguese and offshore banks to suit your individual circumstances.

Foreigners can obtain mortgages from Portuguese banks to fund between 60 and 80% of the property price, with a minimum loan value set at 20,000 GBP. The amount of funding will vary according to your financial background and the bank involved. Both repayment and interest only mortgages are widely available with fixed and variable rate options.

Banks will not normally take into account rental income when calculating an applicant’s level of borrowing.

Click here to get a free quote on a mortgage in Portugal

Typical characteristics of Portuguese mortgages

Loan purpose

Residential

Maximum loan

Max. 80% of valuation

Term

Up to 30 years

Repayment

Capital and interest only

Currency

Euros

Interest rate

3.4% (2007)

Links to major banks in Portugal:

Banco 7
www.banco7.pt

Banco de Portugal
www.bportugal.pt

Banco Espirito Santo
www.bes.pt

Banco Internacional de Credito, S.A.
(Part of Grupo Banco Espirito Santo).
www.bic.pt

Banco Internacional do Funchal, SA
(Also known as Banif).
www.banif.pt

Banco Nacional Ultramarino
www.bnu.com.mo

Banco Portugues do Atlantico
www.bpatlantico.pt

Banco Privado Português
www.banco-privado.pt

Banco Santander Portugal
www.santander.pt

Barclays - Portugal
(Includes online banking)
publico.barclays.pt/index.html

Caixa Geral de Depositos
(Provides online banking)
www.cgd.pt

Credito Agricola
www.credito-agricola.pt

Credito Predial Portugues
www.cpp.pt

Montepio Geral
www.montepiogeral.pt

Sociedade Interbancaria de Servicos, S.A.
(Also known as SIBS)
www.sibs.pt

Virtual Portugal
www.portugalvirtual.pt

Off-Plan Financing

Some developers of off-plan developments operate installment plans over a period of years, while charges applicable vary according to developer. Many investors find these are highly competitive and beneficial, but it is always advisable to shop around for all types of mortgage or other finance arrangements to best suit your needs, before making your final decision.

As always, before making a commitment, we also recommend you discuss your investment strategy with a lawyer, a reputable property agent with experience in the area and even a financial advisor.

2. Equity Release

If you own property in any country and would like to borrow against this in an equity release plan, we can introduce you to an independent financial advisor to assist you in raising the necessary finance.
For homeowners aged in their mid-50s or older, a cash lump sum, a regular income, or both can be generated by using an equity release scheme based on the property value. Equity release schemes can be very helpful to raise funds to finance a mortgage for a property investment in Portugal.

3. Alternative Finance

In this day and age, not everyone falls into a category and some investors need to raise finance using other options. For this reason, there are other borrowing facilities available to investors of Portuguese property.

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