Documentation required for mortgages for non-residents

Do you want to buy a property in Portugal? Find out which documentation is required for mortgages for non-residents!

The documents requested by financial institutions for the affordability calculation and subsequent mortgage offer for non-residents are similar to those requested from national clients, with some minor differences.

The main difference is the specific type of documents which confirm the income and financial status of non-residents, that is the information used to analyse the credit profile and solvency of clients. The documents may also vary from country to country and depending on each applicant’s circumstances.

Generally, the list of documents requested for mortgage applications for non-residents is as follows:

Identification documentation
Passport or Identification Document.
Portuguese fiscal number (NIF).
Proof of income and liabilities
Credit liabilities report from your country of residence.
Last income statement.
3 last pay slips or proof of other regular income in the case of employees and employer reference letter indicating the type of contract and length of service.
Company balance sheet and last income statement for self-employed workers.
Proof of last year's annual pension for retired clients.
Evidence of savings and other income.
Bank statements for the last 6 months.
Proof of payment for other loans, for the last 6 months.
Property documentation:
copy of the promissory contact of Purchase and Sale Agreement.
Deed or land registration document of the property to be purchased.
In the specific case of non-residents, financial entities request a credit report to verify clients’ activity and economic solvency in the country where they reside and work.

This type of report is issued by entities such as Experian in the UK or SCHUFA in Germany

For all due purposes, non-resident clients should submit the document issued by the competent authority in their country of origin.

Likewise, non-residents must also present proof of use of own capital in the purchase of the property, to prove their personal contribution and to justify the origin and movement of capital, under the law under the law of money laundering.

One of the steps that must be taken to advance and complete the process of buying a house in Portugal is to obtain the Portuguese Fiscal Number (NIF). This number is used by the Portuguese Government and its authorities to identify you, and for all tax-related matters.

The NIF request can be made to the Portuguese Central Financial Services by presenting proof of residence and a passport or identification document from the country of origin.

Translation and delivery of documentation
The documentation for the assessment and approval of mortgages for non-residents who come from a non-Portuguese-speaking country may, in some cases, need to be translated and authenticated at clients’ expense.

However, certain financial institutions,doesn’t require translation of the documentation under certain circumstances, which expedite the application and reduce the costs associated with those translations and authentications.

It is common practice for clients to present the original documents related to their mortgage application and to sign the deed of purchase in person at the financial institution and at the notary's office, respectively.

However, the financial institution may also accept the submission of this documentation by postal or electronic via, as well as, through legal representation of the clients by power of attorney. The latter is quite common for non-resident non-residents.

Regardless of whether there are alternatives for managing the mortgage application remotely, electronically or with the intervention of a legal representative, it is recommended that non-resident customers speak directly with the financial institution.

This way, they will be able to receive information, explanations, and advice from the mortgage account officer on anything related to the application of granting mortgages to non-residents, mortgage repayment/payment plans, information on the financial conditions and applicable interest rates, bank fees to be paid, costs, taxes, and any other mortgage contract conditions.

If you are a non-resident and are thinking to buy a property in Portugal, why not take the first step!? There is no initial cost or commitment. Talk to us!