Portuguese Mortgages For Expats And Non

Obtaining a mortgage in Portugal in Euros will probably give you the best interest rate for your mortgage, however it is often easier to raise the money in the UK (or your home country) and then purchase the Portuguese property outright. 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.

Persons who are not residents of Portugal need to pay taxes only on income earned at that country, for instance, interest paid on deposits or savings in Portuguese banks. A couple of banks in France say they'll do mortgages for nonresidents, but the requirements are so strict that precious few non-France residents would qualify.

Most Portuguese banks offer different types of mortgage repayment options on either a fixed or a variable interest rate. We will be able to show you the most important factors regarding your mortgage: from interest rates, to commissions and taxes. Interest-only mortgages are usually only offered for new constructions, and typically only for a two-year term.

Most banks finance 100% of the construction cost and the funds will be released in various stages throughout the building process. The interest rates of a Portuguese variable rate mortgage are linked to either the three or six month European Central Bank - Euribor - rate and increased by the margin (profit) that the bank applies.

Mortgage rates in Portugal have been dropping consistently since the first quarter of 2014, when they averaged 3.37%. The BPI Mortgage Loan Solutions offer several variable and fixed rate options. You should also know that the maximum loan-to-value mortgage in Portugal for non-residents is between 60% to 70% of the purchase price.

Families are taking advantage of the improvement in their financial perspectives, taking into account the recovery of the economy and employment, to return to the credit markets for home loans. Generally speaking, in Portugal you can obtain a maximum loan to value (LTV) of 70 per cent of the purchase price (or valuation if lower).

Buying a property in Portugal may be an attractive investment - as your main residence, as a 2nd residence for vacations, or to rent out as a source of income. In addition to the taxes due upon buying a Portuguese property, buyers may be subject to income tax on rental income or capital gains tax when the property is sold.

Our solution: a mortgage of 375.000 € on the property plus a Lombard loan of 100.000 € on their pension pot. In Portugal the vast majority of mortgages are variable rate, however, fixed rates are becoming more popular. Choose from a range of UK mortgages with the on-going support of our mortgage advisers, who'll support you through the process of buying a property.

Firstly the Euribor (Euro Interbank Offered Rate) is historically lower than the LIBOR (London interbank offered rate) which means Portugal Holiday Home Mortgage (look at this now) the cost of borrowing for a mortgage in Portugal is normally less than the cost applicable to an equivalent UK mortgage.