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 Scheme 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

  • Traditionally, banks in Portugal finance up to 90% of the property’s purchase price or valuation (whichever is lower). Buyers must cover the remaining amount as a down payment.

    Under the new public guarantee program, the State guarantees up to 15% of the loan, giving banks additional security. This may allow lenders to offer financing of up to 100% of the property value, meaning buyers may not need a down payment.

    This is not a grant. The buyer remains fully responsible for repaying the loan. The State only guarantees a portion of the loan to the bank.

    • Be between 18 and 35 years old (inclusive). If purchasing as a couple, both buyers must meet the age requirement.

    • Be a tax resident in Portugal. Applicants do not need to be Portuguese citizens — foreign residents who pay taxes in Portugal can also qualify.

    • Be purchasing a first primary and permanent residence.

    • Not own any other residential property.

    • Have no outstanding debts to the Portuguese Tax Authority or Social Security.

    • Have taxable income within the eligible IRS brackets (typically up to the 8th bracket).

    • Purchase a property with a value of up to €450,000.

    As with any mortgage, banks will still assess credit history, employment stability, and debt-to-income ratio.

  • Many eligible buyers may also benefit from:

    • IMT (Property Transfer Tax) exemption on first homes within certain value limits.

    • Stamp Duty exemption on the acquisition.

    These measures significantly reduce upfront costs, making homeownership more accessible for young professionals.

  • Important Considerations

    While 100% financing removes the down payment requirement, buyers should still plan for:

    • Notary, registration, and legal costs.

    • Bank fees and mortgage-related expenses.

    • Ongoing property expenses (IMI, condominium fees, maintenance).

    • A sustainable monthly repayment aligned with their income stability.

    In some cases, banks may still require proof of savings or additional documentation depending on the borrower’s profile.

  • Final Thoughts

    This public guarantee scheme 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.

    If you are considering buying your first home in Portugal and want to understand whether you qualify, the best next step is to speak with a mortgage advisor or bank to assess your individual profile.

Ready to Seize the Opportunity?

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

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

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