How to Get 100% Mortgage Financing in Portugal (If You’re 35 or Under)

For many young buyers in Portugal, saving for the traditional 10%–20% down payment has been the biggest obstacle to buying a first home.

To address this, the Portuguese government introduced a Public Guarantee Program that allows eligible young tax residents (35 or under) to access up to 100% mortgage financing when purchasing their first primary residence.

Here’s what you need to know.

 FAQs

  • Most banks in Portugal typically finance 85–90% of a property’s value, meaning buyers must cover the remaining 10–15% as a down payment.
    Under the Public Guarantee Program, the government guarantees up to 15% of the property value, allowing banks to offer mortgages of up to 100% financing.

    This is not a grant — the buyer remains fully responsible for repaying the mortgage; the State simply guarantees part of the loan.

    • Be 18–35 years old with tax residency in Portugal (any nationality)

    • Purchasing a first primary residence

    • No current property ownership (or none in the last 3 years)

    • Annual taxable income up to ~€83,696 (8th IRS bracket)

    • No debts to the Tax Authority or Social Security

    For joint purchases, both applicants must meet all criteria, including the age limit.

    • Located in Portugal and used as a primary residence

    • Valid occupancy license and good condition

    • New construction or approved renovation projects may also qualify

    Maximum price: €450,000
    Use: Owner-occupied only (no investment or rental)
    Deadline: Contracts signed by December 31, 2026

While the government guarantees the down payment, you still need to prove to the bank that you can afford the monthly mortgage payments.

The Bank of Portugal requires borrowers to maintain a healthy debt-to-income ratio (effort rate). Generally, your monthly mortgage payment should not exceed about 50% of your net income.

Extra Benefit | Tax Exemptions

In addition to not needing a down payment, buyers using the public guarantee may also benefit from tax exemptions under the “IMT Jovem” program, including:

  • IMT exemption (Municipal Property Transfer Tax)

  • Stamp Duty exemption on the property acquisition

Depending on the value of the property, this can represent additional savings of more than €15,000.

This public guarantee program represents one of the most significant changes in Portugal’s housing market for young buyers. For eligible tax residents aged 35 or under, it creates a real opportunity to move from renting to owning without the traditional barrier of a large upfront deposit.

Ready to Seize the Opportunity?

If you are 35 or under and a tax resident in Portugal, this program could allow you to enter the property market without the traditional down payment.

If you would like to explore your options or learn more, our team would be happy to help.

Get in touch to discuss available opportunities and the next steps.

March, 6th 2026.