Below you can find information about Portuguese mortgages and the initial and ongoing costs of buying and owning a property in Portugal. This information might not be complete so we always recommend that you seek proper advice from specialists.

Mortgage Possibilities and Conditions
It is possible to obtain a mortgage when you choose to purchase a property in Portugal. All Portuguese mortgages are considered full status; you will need to show proof of income when applying for a mortgage. Normally, a deposit of 20% of the total purchase price is necessary. You will personally be responsible for the added fees, which will vary depending on the loan and price. Portuguese mortgages are set on a repayment basis for anywhere between 5-30 years, with the repayment to be finished at age 75.
Even if you had thought to rent out your property, the lender will assess your ability to repay the loan. The typical considerations are that your 35% of your income should cover your expenses as well as a monthly repayment for the loan.

Initial Costs of Buying Property in Portugal
Firstly, if you are planning to purchase a property in Portugal you will need to acquire a tax card (Numéro Fiscal de Contribuinte). Then, normally, after you’ve found the property you’d like to buy you will sign the preliminary deed, called the promessa. This is a binding document, and usually at this same time you will pay the deposit of around 5–10 per cent. Before you sign the final deed (Escritura), be sure you are aware of all outstanding fees and are clear about the conditions of the sale.

Below are the different taxes and fees, along with their approximate cost. The fees are based on the valor tributável (fiscal value) of the property. Usually, upon buying a property in Portugal, these fees add up to about 15% of the total purchase price. This is a higher amount than most other European Union countries.

- Transfer Tax (SISA): This tax must be paid in full before the signing of your final deed of purchase. The receipt is necessary for the notary at this time. Depending on the property value, if you have had to pay the SISA tax, you may be able to forego paying property tax for a certain period of time.
NOTE– This tax is only necessary when buying a resale property; but, the fee is not applicable if you buy a property owned by an offshore company.

- Value Added Tax: If you are purchasing a new property then this IVA tax is added by the developer or builder for 19 per cent. This tax should already be listed in the price, but be sure to check carefully that it is not adding again after you’ve agreed on the final price.

- Notary’s Fees: This fee is fixed by law and was created for the notary that will overlook the deeds of the sale. The charge is around 150€ with an added 1.25€ for each clause or amendment in the deed.

- Legal Fees: The legal fees for buying a property in Portugal are an added 1–2 per cent of the price. Of course, hiring a lawyer is optional, but it is very highly recommended, especially when purchasing in a foreign land.

- Deed Registration Fees: This fee is also paid to the notary who officiates the sale. This fee is around 1% of the total property’s value.

- Surveyors Fees: If you choose to employ a surveyor to look over and inspect the property, this, of course, will add another fee. A survey and valuation, for a property costing around 200,000€, is approximately 550€. For a full survey, outlaying the structure as well, you will pay around 800€.

- Selling Agent’s Fees: Depending on the type of property and the cost, you will normally pay about 5–10 per cent of the total price for the selling agent’s fee.

- Utility Fees: If you purchase a new property, it is probable that you pay for the electric, gas and water hook-ups, as well as the meters necessary. You can ask the builder to provide these costs to you in writing.

Property Prices in Portugal
Of course, depending on which area in Portugal you would like to purchase property will be a deciding factor in the overall cost. Some of the more touristy areas have higher, rising prices on property. Housing costs are also higher in Porto and Lisbon, with a relatively problematic housing shortage.
In general, prices rise steadily and not too fast throughout Portugal, especially in areas where there are fewer local demands. One important thing to keep in mind, especially if you are on a strict budget, is that any coast/beach set property will be, maybe, twice as much as property in a central or inland region.
A basic studio apartment will be in the range of 65,000€ – 90,000€ (again, depending on the location), 1 bedroom apartment or townhouse will be between 100,000€ - 150,000. For most two to three bedroom places you can expect to pay around 130,000€ up to 400,000€. Of course, if you have the necessary means and are looking for something extravagant you can purchase a home or villa upwards of 1 million Euros. Keep in mind also, you will pay more in property tax, the more your home costs initially. There can also be community fees that would increase with the increase of size and value of your property.

The fees that ensue when you are going to make a property purchase are what can really make a difference in cost. You may be thinking you’ve found a great deal for your buy, but when the total sum appears with the fees, you could be in for a surprise.