How can I obtain financing for my Golden Visa project in Portugal?

How can I obtain financing for my Golden Visa project in Portugal?

After the crisis on subprime mortgages, Portugal is now feeling a revitalization in its economy and an increase in credit concessions from the national banks. Regarding this, there are some options for housing loans to purchase a property in Portugal.

You can put a mortgage on your current house

If you have a wide portfolio of long-term investments, it can make sense to make an interest-only loan, instead of liquidating any investments, especially if they are lucrative in terms of taxes.

Obtain a loan in your home country

There are bank entities that provide international credit to use in other countries within their operation areas.

However, some banks do not grant loans for the purchase of international properties or limit those loans to some kinds of properties or regions. It can be a good option if you want to skip the language barrier, but it may not be the best one.

Obtain a loan in Portugal

In recent years, the Portuguese banks have not been putting huge objections to grant loans to foreigners. According to the Portuguese Banking Association (ABP), the concession of housing loans has been increasing significantly, partly due to the demand from foreign citizens. Therefore, there are more and more foreigners seeking Portugal, not only to visit but also to become residents here.

Though it is not possible to finance the entire minimum amount to apply for a Golden Visa in Portugal, you can ask for a loan to cover part of the property cost. For example, if you intend to acquire a property that costs 700.000€, you need to have 500.000€ and can then ask for a loan for the remaining 200.000€.

Each bank has its own financing politics, wherefore it is necessary to inform yourself with the bank to know exactly which are the required documents. Usually, it is necessary to have the following documentation:

  • Registration in the Portuguese Tax System, since it’s necessary to obtain a Portuguese Tax Identification Number;
  • Passport or identity card;
  • Income tax return;
  • A copy of the last 6 paychecks;
  • Bank statement from the past 6 months: from the general accounts and the savings account;
  • Proof of payment of other loans the applicant may have to pay, from the past 6 months;
  • Employment contract for dependent workers or the balance sheet of the company and the last income statement for a self-employed worker;
  • Land Registry Certificate;
  • Certificate of Title;
  • Copy of the Promissory Contract with the sale and purchase agreements.

The maximum financing period is 40 years, however, non-residents are restricted to 30. It is to note that the sum of the financing period with the buyer’s age can never exceed 75 or 80 years, depending on the bank. For example, a client with 60 years can only ask for a loan of 15 or 20 years.

We suggest to you a list of the main bank entities in Portugal that offer financing solutions under the Golden Visa program:

Caixa Geral de Depósitos

Millennium BCP

BPI

Novo Banco

Atlântico Europa

On their websites you will only find some brief information, so we advise you to visit the bank of your choice for further information.

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