Portuguese banks lend to US citizens who earn their income in the United States, and you do not need to live in Portugal to get a mortgage. What changes is how the bank looks at your income: it is in dollars, it is taxed in the US, and the bank has to verify it from another country. Here is how Portuguese banks assess US income, and how to prepare a file that gets a clear answer quickly.
Banks look at net income, not your salary
A US salary is usually quoted gross. Portuguese banks reason in net monthly income, after tax. That is why your US tax returns matter: they let the bank work out what you actually take home. Bonuses and commissions are often counted only if they are regular and documented over two years.
Dollar income: the exchange rate question
Your income is converted into euros to calculate how much you can borrow. Because the exchange rate moves, some banks apply a safety margin to income earned in a foreign currency, which reduces the amount taken into account. Your mortgage will be in euros: if the dollar weakens, your monthly payment costs more in dollars. It is worth keeping some room in your budget for that.
The 45% rule
Since 1 August 2026, the Banco de Portugal requires that all your loan payments stay below 45% of your net income, tested at a higher, stressed interest rate. Your existing loans count: a US mortgage, a car loan or student loans reduce what is left for the Portuguese mortgage.
Example: with €6,000 of net monthly income after conversion, your total loan payments can reach €2,700. If you already pay €500 a month for a car loan, €2,200 is left for the new mortgage, and the bank checks that amount at a stressed rate, so the loan you can get is lower than a simple calculation suggests. Our Portugal mortgage calculator gives you a first estimate.
The documents to prepare
Employees
- Last 2 or 3 pay stubs.
- W-2 forms and federal tax returns (Form 1040) for the last 2 years.
- A letter from your employer confirming your position, start date and salary.
Self-employed and business owners
- Federal tax returns for the last 2 or 3 years, with Schedule C or K-1.
- Business financial statements and recent interim figures.
- A letter from your CPA confirming your income helps.
Retirees
- Social Security benefit statement (SSA-1099) and pension statements.
- Statements for any annuity or investment income you rely on.
Most banks want the loan repaid by around 75 to 80, so your age sets the maximum term.
For everyone
- Passport and Portuguese tax number (NIF).
- Bank statements for the last 3 to 6 months.
- Proof of where the down payment comes from.
- A US credit report.
- When you open a Portuguese bank account, a FATCA form (W-9): a formality.
See the full list in our mortgage documents checklist for non-residents.
How much can you borrow?
As a non-resident, banks usually finance 60 to 80% of the purchase price or the valuation, whichever is lower. Purchase costs come on top and are paid from your own funds: for a non-resident they are close to 10% of the price, mainly because of the flat 7.5% IMT for non-residents. If you plan to move to Portugal within two years, you can claim part of it back.
Tips for a smooth application
- Get a pre-approval before you make an offer: you will know your real budget.
- Send complete, recent documents in one go: missing pages are the main cause of delays.
- Declare all your existing loans: the bank will see them on your credit report anyway.
- Compare offers on the APR (TAEG) and total cost, not only the interest rate.
Read more on our page about mortgages in Portugal for US citizens and our article on the 5 myths about Portuguese mortgages for Americans.
Each bank sets its own criteria; this article is for guidance and is not tax advice. Article dated 12 November 2026.
