Mortgage credit for emigrants: What are the conditions?

Are you Portuguese, living abroad, but want to buy a house in Portugal? Go ahead, don't waste time: Poupança no Minuto takes care of all the bureaucracy. To find out what conditions you can access and the documentation you need to gather, we explain next.

I am a Portuguese immigrant living abroad. Can I buy a property in Portugal?

If you are Portuguese and living abroad, you can still buy a property in your home country. However, conditions may vary from bank to bank due to the profile of the potential client and their new project.

If you buy the property but continue to reside abroad, you may encounter obstacles due to the insecurity of some banks regarding possible defaults or difficulties in repaying the loan. Some banks choose not to approve the loan, or offer less favorable conditions than to a resident.

At the access level, it is easy to advance with the process, since most Portuguese banks allow remote account opening and processing the majority of the documentation for mortgage loan contracting via telephone and digital means. This is also facilitated by the existence of Portuguese bank branches in major foreign cities.

What requirements do I need to meet?

At the time of requesting approval for financing, there is no need to have a connection with the Bank of Portugal, but in order to proceed with the hiring of housing credit for non-residents, as a Portuguese emigrant, you must have an open account in a Portuguese bank.  

Because he is an emigrant, he can hire an emigrant statement account that will give access to some benefits, products, and favorable conditions. It can only be, in principle, co-titled by the spouse, by those who live with the emigrant in similar conditions, or by the children.

Afterwards, the requirements will be the same as for a resident's housing credit. Banks take into account the customer's financial context, considering the property's characteristics, and may define more demanding credit conditions.

What housing credit conditions can be proposed to me?  

The home loan aimed at non-residents may have different defined limits, both in value and in the financing period. These are the conditions that can differ the most compared to resident nationals.

So, while a resident national in Portugal, banks finance between 80% to 90% of the value of a property, for own and permanent housing, for emigrants the financing percentage may not reach these values. But everything depends on the banks.

On the other hand, European clients with a Residence Certificate in Portugal (CRUE), or with residency in Portugal and income declared in IRS, in some banks it is possible to have a proposal equivalent to national residents, for own and permanent housing. Therefore, in this case, you can use your own capital in 10% of the property, if the bank approves the loan covering 90% of the value.

Regarding the financing term, as a Portuguese emigrant residing abroad, it can be shortened. Currently, in Portugal, the following ceilings are delimited based on the age of the borrowers:

• Clients under 30 years old can have a maximum contract term of 40 years.
• Customers between 30 and 35 years old, with a maximum limit of 37 years for the contract.
• And clients over 35 years old, a maximum contract period of up to 35 years.  

Depending on the bank, you may not be able to meet these deadlines, as they may offer you shorter deadlines, regardless of age.  

In addition, the conditions presented by banks may also vary depending on whether you reside within Europe or not.

What documents will I need for non-resident home loan?  

As a rule, banks may request the following documents from non-resident clients for a home loan application:

• Identification document (passport and Portuguese tax identification number - NIF).
• Proof of income and expenses, such as:  
• Last income statement;
• Three latest pay slips or other income proof documents.
• Company's balance sheet.
• Last income statement for self-employed workers;
• Proof of annual pension for retirees;
• Monthly bank statements from the last semester.
• Proof of payment for other semi-annual financing;  
• Country income responsibility center.
• Tax return or tax assessment from the current country of residence.  

Is it too much information? Leave it to Poupança no Minuto. Through a free service, credit intermediaries can help you with all documents and negotiation of conditions with banks. In an instant, you see the home loan for your new home in Portugal completed.