Financing a property in Portugal may be more straightforward than anticipated and can serve as an effective strategy to counteract rising property prices in Brazil, driven by recent market growth.
An increasing number of foreign nationals are purchasing properties in Portugal, whether for investment purposes, vacation homes, or permanent relocation.
Financing Options
Financing plans vary depending on the bank and the property in question. Interest rates typically range between 2.5% and 4% annually, with financing available for up to 70% of the property’s value. The average loan term is 35 years, which may extend for new properties or shorten for older buyers.
Required Documentation
Given the involvement of individuals from different nationalities, a comprehensive set of documents is necessary to demonstrate the buyer’s intent and financial capability. The required documents include:
- NIF (Portuguese Tax Identification Number), equivalent to Brazil’s CPF
- Brazilian passport
- Last three pay slips or monthly income statements
- Income tax returns for the past three years
- Bank statements for the last three months for all accounts
- Signed employment contract, work card, or equivalent proof of employment
- Creditworthiness declaration from Serasa/SPC
Property Documentation
To secure financing, it’s also necessary to provide all relevant property documentation. Real estate agencies or the responsible broker typically assist in preparing and obtaining these documents, which include:
- Land Registry Certificate (Certidão do Registro Predial): Confirms and legitimizes the property’s ownership history. Valid for six months and can be requested online.
- Property Tax Document (Caderneta Predial): Provides information on the property’s fiscal status. Obtainable from the local Finance Department where the property is located.
- Usage License (Licença de Utilização): Specifies the property’s intended use (residential or commercial). Available from the local municipality.
- Housing Technical Sheet (Ficha Técnica de Habitação): Details the property’s technical and functional characteristics. Also obtainable from the local municipality.
