More Americans are buying homes in Lisbon, Porto and the Algarve, and most of them start with the same doubts about financing. Here are the five myths we hear most often, and what actually happens.
Myth 1: “I need to live in Portugal to get a mortgage”
No. Portuguese banks finance non-residents. You can buy and borrow without a residence permit, a Portuguese address or a Portuguese salary. You will need a Portuguese tax number (NIF), which can be obtained remotely. See our step-by-step guide to buying property in Portugal as a foreigner.
Myth 2: “Portuguese banks don’t accept US income”
They do. Income in dollars is assessed like any foreign income, as long as it is stable and well documented: tax returns, pay stubs or business accounts, and bank statements. Monthly loan payments are generally capped at 45% of your net income.
Myth 3: “Non-residents can’t borrow much”
Non-resident US buyers are usually financed at 60 to 80% of the property price. The rest comes from your down payment. Plan for purchase costs on top: since May 2026, non-residents pay a flat 7.5% property transfer tax (IMT), unless they become Portuguese tax residents within two years, in which case the difference can be refunded. With stamp duty and fees, budget around 10% of the price in addition to your down payment. Read more about the 7.5% IMT rule.
Myth 4: “I’ll have to fly to Portugal several times”
Not necessarily. Pre-approval, the promissory contract (CPCV), the bank valuation and the final offer can all be handled remotely. The deed can be signed in person, or by a representative with a power of attorney. Allow around 45 days between a complete application and signing (see the 8 steps of a Portuguese mortgage).
Myth 5: “FATCA makes it impossible”
FATCA applies, but it is a formality: as a US citizen, you sign a W-9 form when you open your Portuguese bank account, and the bank reports the account to the IRS each year. It does not create a new tax and does not stop you from getting a mortgage.
A real case
A New York client bought a rental apartment in central Lisbon for €450,000, financed at 70% (€315,000) over 25 years at a fixed rate, without leaving the United States before signing.
Buying from the US? Read our full guide to Portuguese mortgages for US citizens, or book a free call back with an English-speaking mortgage specialist.
