Buying property in Portugal
Note: As for all credits, the bank does not commit to grant a loan and that any credit is offered on a case-by-case basis and subject to the client’s specific situation. Skandinaviska Enskilda Banken AB (publ) is subject to the prudential supervision of the Swedish Financial Supervisory Authority, Finansinspektionen. SEB Luxembourg is furthermore supervised by the Luxembourg Financial Supervisory Authority, Commission de Surveillance du Secteur Financier (the “CSSF”), in its role as host member state authority.
Whether you're looking to buy a new property, refinance an existing mortgage, or switch from another bank, we’re here to support you right from the start. As a Nordic bank with extensive experience of clients living and/or buying abroad we have the competence you need, your dedicated client executive will support you in finding the right mortgage solution.
With access to our extensive network of local experts and global partners, we offer mortgages for residential properties primarily located near Lisbon, as well as other prime locations along the Algarve coast.
A few things to consider
- We offer a minimum loan amount of EUR 250,000 and up to 75% of your property’s value*.
- We offer a personalised amortisation plan including the option for an interest-only period. Depending on your financial needs, the tenor can extend up to 10 years.
- Our Portuguese mortgages are provided in EUR and the interest rate is variable. By having your property and loan in the same currency, you limit potential foreign exchange risks.
- The mortgage is secured by the Portuguese property itself. Additional collateral is not usually required.
We recommend contacting us as early as possible in the process, and always prior to signing any binding
agreements. The mortgage process in Portugal typically takes 6 to 8 weeks.
* This refers to the value according to the current market valuation performed for the purpose of the mortgage application, or the purchase price of the property, whichever is lower.
Buying property in Portugal: step by step
1. Loan application
Before finding the property that you want to buy you can apply for a preliminary credit approval. This gives you the indicative terms of the loan and is valid for six months. It enables you to act quickly when the right opportunity arises.
2. Valuation
Once you have found a potential property to purchase, the next step is to request a valuation. It will be done by an external expert who is approved by us. The cost for this valuation is charged to you.
The Loan-To-Value (“LTV”) of your mortgage loan is based on the lowest amount of the purchase price and the external valuation.
3. Preliminary sales agreement
When you and the seller have reached an agreement , we will involve our Portuguese lawyers. They play a central role in the mortgage loan process when performing the due diligence on the property and arranges for the necessary registrations of the mortgage loan.
You'll need to have your own legal advisor or counsel, arranged independently.
4. Loan contract
When the due diligence procedure on the property is completed by a Portuguese lawyer representing SEB and the formal credit decision taken, we send you the binding loan offer. After the normal 14 days of reflection period, which can be waived, you can sign it and return it to us.
Before sending us the originals by postal mail or courier (DHL, UPS etc.) we need you to send us a scanned copy of the complete signed loan agreement.
5. Completion day
The signing of the final purchase and mortgage deed takes place in the notarial office. You must either be physically present at the meeting or arrange for representation via power of attorney.
A notary is a public official authorized by the Portuguese government. The notary is responsible for establishing the mortgage deed and the registration with the mortgage registrar.
It's important to consider the tax implications of the transaction, which can differ based on your individual circumstances. Please note that we don't offer tax advice regarding Portuguese mortgage loans. We highly recommend seeking independent guidance from a qualified tax lawyer
6. Enjoy your property
Congratulations!
Get to know more
Please reach out to your client executive or contact our international mortgage team to discuss how we can help you find the right mortgage plan.
Postal address : P.O. Box 487
L-2014 Luxembourg
Office address : Skandinaviska Enskilda Banken AB Luxembourg Branch
Royal Park, 29, Avenue de la Porte-Neuve, L-2227 Luxembourg
Switchboard : +352 262 31