Portuguese Mortgage Calculator
To understand the financial crises that the world has been going through you need to understand what money is, so I start there. Then once the property was completed, the bank offered a loan of 450.000€ for a 25 year period. Capital gains tax for non-residents is charged at a flat rate of 28% and is payable at the time of sale. You'll also find that, depending on the lender, there are loans available at both variable and fixed rates.
Most mortgages can be arranged with terms of 25 years (for non-residents) and 30 years (for residents), usually up to a maximum age of 75. For non-residents, some banks have a maximum 20 year term. If you are buying a property for commercial use, such as a restaurant or a shop, for example, the maximum mortgage is 50% of the price (or valuation if lower).
Available up to 60% of the property purchase price with rates from Euribor + 2.1%. In Portugal, they can account for up to 10% of the property price, so you need to ensure you can handle those as well as the Portugal Holiday Home Mortgage required deposit out of your cash reserves. For example, global banking giant Santander has a Portuguese operation, offering many of the same accounts and deals that you can get elsewhere in the world.
Despite much economic uncertainty in recent years, not to mention an unstable housing market, all the major Portuguese lenders continue to provide mortgages to suitable individuals, including overseas nationals, purchasing property in Portugal. The amount of housing loans that were granted this year is the highest since the beginning of the financial crisis.
Like any mortgage application, it can be a very time-consuming and laborious process, so it's crucial that you provide all the most up-to-date documents at once to avoid delaying the process. This is a tricky type of mortgage to commit to as with all the financial uncertainty at present the interest rates could fluctuate quite dramatically.
Because residency can be triggered by being in Portugal for more than 183 days in a given calendar year, or by owning a property which the government considers a ‘habitual' residence, those seeking to invest in residential real estate in Portugal may wish to seek the advice of Portuguese tax expert for proper tax planning.
This is only offered for construction mortgages in Portugal and, where offered, it is only for 1 or 2 years at the start of the term. By taking steps to arrange your mortgage at the start you will have a better idea of how much you can spend on your Spanish or Portuguese property and can work out the likely future financial implications of your purchase.
Rates now start at 3.3 per cent for a variable rate of up to 30 per cent loan to value, 3.4 per cent for a variable rate of up to 60 per cent loan to value, and 4.1 per cent for a five-year fixed rate of up to 80 per cent loan to value. The mortgage loans terms vary from 1 to 50 years.
A typical fixed rate for a 5-year term could be 2.5%, depending on the bank. In Portugal Banco Santander Totta operates as a universal bank, offering retail, private, corporate and investment banking products and services. Remortgaging is possible in Portugal but the rates are higher and there is more scrutiny in the process.
