Secure your dream house in Portugal with the help of a local bank loan
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Securing a mortgage for the purpose of buying property overseas is possible in select countries. It’s true that it can be more challenging, as many foreign banks are cautious about lending to non-residents.
It’s also true that the terms will likely be different from what you’re used to, especially if you’re American. Don’t expect a fixed-rate, 30-year mortgage. These are unique to the U.S. Shorter loan terms (typically 15 to 25 years) are more common overseas, as are variable interest rates.
That said, there are several countries—Portugal, Spain, Italy, Greece, and Panama, for example—where foreigners can and do secure mortgages, even without residency. If you’re looking to buy property abroad but need a loan to do so, these five countries could be smart options.
Portugal
In Portugal, foreign buyers can access mortgages through major banks like Millennium BCP, Novo Banco, and Santander. Loan-to-value ratios for non-resident foreigners typically range between 60% and 70%.
As a non-local, you’ll likely be required to make a bigger down payment—around 30% to 40% of the purchase price—compared to a local who may only need to put down 10% to 20%.
You’ll need a Portuguese tax number (NIF) from the Tax Office to apply for a mortgage, as well as a local bank account and the standard financial documents: passport, proof of income, employment verification, recent bank statements, and the purchase agreement.
Once approved, the home you want to buy will be independently appraised, and the bank will provide a formal mortgage offer. Rates vary depending on your credit profile, income, and down payment. In 2024 and 2025, interest rates for mortgages average around 3% to 4%. Fixed and variable mortgage options are available.
Note that in most European countries that use civil law (Portugal, Spain, Italy, Greece, etc.), banks make life insurance mandatory for mortgages. Terms, therefore, can vary according to age. The eligibility age for life insurance is typically 70 or 75. The closer your age is to the cap, the shorter the loan term you can usually expect.
Spain
Spain also offers foreigner-friendly mortgage options, and many expats take advantage of them. In 2022, 7% of all mortgages issued in Spain went to foreign buyers, according to the General Council of Notaries.
Spanish banks typically lend up to 70% of the property’s purchase price for non-residents, compared to 80% for locals. You’ll usually need to make a minimum down payment of 30% and show a steady income to qualify.
Mortgage terms range from 20 to 25 years, and borrowers typically need to be under 65 years old. Required documents include your Spanish tax ID (NIE), passport, proof of income, employment contract, bank statements, and credit history.
Spain’s interest rates are competitive in Europe, with rates between to 2.9% and 3.9% for residents and rates of 3% to 5% for non-residents in 2025. Variable and fixed rates are available. Many buyers opt for variable-rate mortgages tied to the Euribor—the Euro Interbank Offered Rate, a daily reference rate published by the European Money Markets Institute.
Italy
Italy allows foreign buyers to obtain mortgages, but banks tend to be more conservative with foreigners. Not all banks work with non-residents, but your chances are better in urban areas and tourist destinations where international buyers are common.
Foreigners are generally expected to pay a large down payment—typically 40% to 50% of the purchase price. You’ll need to obtain an Italian tax ID (Codice Fiscale), open a local bank account, and provide standard documentation such as your passport, proof of income, credit report, and bank statements.
Most loan terms range from 20 to 25 years. Mortgage interest rates are between 2.7% and 5% in 2025, though rates may be higher for non-residents. Fixed- and variable-rate loans are available, with variable loans typically tied to the Euribor.
Banks may also require that you insure the property and take out life insurance, depending on the terms of the mortgage.
Greece
In Greece, foreign buyers can apply for mortgages through local banks and borrow up to 65% of the property’s commercial value, determined by an independent appraisal.
Loan terms can range from 3 to 35 years, depending on your country of residence. Lending criteria tend to be stricter in Greece. Again, you’ll need life insurance to get a mortgage through a Greek bank, and the key eligibility age for life insurance is around 70 or 75.
Interest rates vary from around 2% to around 5%, depending on the loan structure. Floating-rate loans tend to be tied to the three-month Euribor, plus a fixed spread set by the bank.
Banks require collateral—usually a mortgage lien on the property and insurance against fire, earthquake, and other natural risks. In some cases, a cash deposit or pledged investment account may be accepted as collateral for floating-rate loans.
The process of getting a mortgage can be more bureaucratic than in Portugal or Spain, but Greece remains a viable mortgage destination for buyers with solid financials and a long-term plan.
Panama
Panama offers relatively accessible mortgage options to both residents and non-residents, though loan terms and documentation requirements are quite different from what you might expect in the U.S.
Loan terms are generally 25 years, and interest rates are averaging 6% depending on the bank, property type, and applicant profile. Mortgages for second homes are charged a 1% premium. Effectively any non-resident is therefore charged the premium because the assumption is the Panama property is a second home. This premium applies to Panamanians as well.
Foreigners should expect to make a down payment of at least 30%, though some developers may offer more flexible financing options.
Rather than relying heavily on credit scores, Panamanian banks focus on your ability to pay. In addition to your completed mortgage application, you’ll need to provide standard identification documents like your passport, recent utility bills with your address, professional reference letters, as well as reference letters from your home bank, income verification, tax returns, and a property appraisal by a bank-approved expert. You may also need to include a resume and a letter explaining your investment plans. All documents must be authenticated via Apostille or through a Panamanian consulate.
You’ll also be required to carry life insurance and insurance on the property—standard for a mortgage anywhere. The mortgage will be secured with a lien filed in Panama’s public registry. In our experience, mortgages in Panama are adjustable-rate mortgages, although rates have not changed much over the past 20 years.
While more document-heavy than some other countries, Panama remains one of the more flexible Latin American markets for expat lending.