Preparing a construction financing file
Budget

Financing your build in Portugal: how it works.

By the Lysbois team Timber-frame builder in Portugal August 2026 8 min read
70 to 80 %The share of the project financed by Portuguese banks, by profile.
20 %The minimum down payment as a rule, more for some non-residents.
5 to 30 yearsRepayment terms practised on the home loan.

Yes, Portuguese banks finance new builds, including for non-residents. But a construction loan does not work like a standard purchase loan: staged releases, project appraisal, a calendar to synchronise with the build. Here is how the journey actually unfolds.

What Portuguese banks finance

The Portuguese home loan (crédito habitação) covers new builds, generally up to 70 to 80% of the project depending on profile, over terms of 5 to 30 years. The expected down payment is generally 20% minimum, more for some non-resident profiles. The land can enter the financed base if it is part of the operation.

The bank takes a mortgage on the property and has the project appraised by its own expert (avaliação): its counter-check of the budget you present.

Non-residents: conditions and documents

Building from France without being a Portuguese tax resident is the case of most of our clients. The typical file includes:

  • The NIF (Portuguese tax number) and a bank account in Portugal, prerequisites for any operation.
  • Proof of income: payslips or accounts, tax notices, bank statements.
  • Debt position: Portuguese banks look at the overall effort rate, French loans included.
  • The project: land, fixed-price building contract, permit or permit timeline.

A building contract with a locked lump-sum budget is a real asset in the file: the bank appraises a firm commitment, not an open estimate.

The construction loan: funds released in stages

The bank does not pay everything upfront: funds are released in stages, aligned with site progress and validated by its expert's inspection visits. Foundations, shell, weathertight, finishes: each milestone reached triggers the next stage.

Hence the importance of synchronising the building contract's schedule with the release plan: our contractual milestones are designed to match it, which spares the client from bridging between two stages.

The builder's eye

The point that blocks most often is not the rate, it is the calendar: a permit still in process, a bank appraisal more cautious than the quotation, stages poorly aligned with the site. All of this is anticipated at set-up stage, not along the way.

The steps, from pre-approval to signature

  • 1. Pre-approval. On an income file, the bank gives an agreement in principle and an envelope. Get it early: it frames the project's realistic budget.
  • 2. Project appraisal. The bank's expert values land and project; the loan offer is adjusted accordingly.
  • 3. Signature. The deed (escritura) formalises the loan and the mortgage, before the notary.
  • 4. Releases. The stages follow site progress, up to delivery.

Optimising your file

  • Compare several banks. Policies towards non-residents vary noticeably; our Franco-Portuguese partner broker compares and negotiates, with an answer in principle within 48 working hours.
  • Present a closed budget. Lump-sum contract, firm calendar, guarantees: the file reassures and gets appraised fast.
  • Aim for performance. Several banks reserve their best terms for the best-rated homes: an A+ house finances better.
  • Anticipate ancillary costs. Taxes, notary, appraisal, insurance: they stay at your charge and add to the down payment.

Frequently asked questions

Can a non-resident borrow in Portugal to build?

Yes. Portuguese banks finance new builds for non-residents, generally up to 70 to 80% of the project depending on profile, with a minimum 20% down payment.

How are funds released during construction?

In stages, aligned with site progress and validated by the bank's expert: foundations, shell, weathertight, finishes.

Do I need a Portuguese bank account to borrow?

Yes: the NIF (Portuguese tax number) and a local bank account are prerequisites, for the land purchase as for the loan.

Your financing plan, with numbers.

Give us your target budget and situation: we frame the realistic envelope with our partner broker, free of charge and without obligation.

Simulate my loan

Also read: the price of a timber-frame house in Portugal · building permits in Portugal · the loan simulator.

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