Getting a Portuguese mortgage with US income: FATCA, dollars and what banks want

If you earn in the US, a Portuguese bank can lend you the money for a home here. The rules on how much are the same as for any non-resident. What is different for Americans is FATCA, the US law that makes foreign banks report US account holders, and the fact that your income arrives in dollars.

This guide is for US citizens and green card holders, whether you still live in the States or have already moved. We cover why some Portuguese banks are cautious with US persons, the Banco de Portugal limits, how lenders treat dollar income, the documents and credit checks, currency risk, the 7.5 percent non-resident IMT, life insurance, and the US reporting you should be aware of. For the general picture, read our guide to mortgages for non-residents alongside this one.

Why being a US person changes things

The Foreign Account Tax Compliance Act (FATCA) requires banks outside the US to identify accounts held by US persons and report them. Portugal signed an intergovernmental agreement with the US, so Portuguese banks report to the Portuguese tax authority, which passes the information to the IRS, per the US Treasury and the explanation published by Millennium bcp.

In practice that means three things for you:

• You will be asked to confirm your US status. When you open an account, the bank will ask for your US taxpayer number and a self-certification, typically on IRS Form W-9. This is routine, not a red flag.
• It applies wherever you live. A US citizen who has lived in Lisbon for ten years is still a US person for FATCA. So is a green card holder. Moving to Portugal does not take you out of it.
• Some banks are more cautious. The extra compliance work leads some institutions to limit the products they offer US clients, or to accept them only through certain channels. Others are used to American buyers and handle it smoothly. Which banks are open to US persons changes over time, so it is worth asking at the start rather than discovering it halfway through an application.

None of this stops you from borrowing. It mostly narrows the list of lenders, which is why a broker or adviser who knows which banks currently work with Americans can save you weeks.

The Banco de Portugal limits

Every Portuguese bank lends within the central bank's macroprudential recommendation, rewritten as Recomendação Macroprudencial n.º 1/2026 and applied from 1 August 2026, per ECO.

Those are ceilings. As a non-resident you will typically be offered less: market guides put it at around 60 to 70 percent of the lower of price and valuation, with buyers earning outside the eurozone nearer the lower end, per The Portugal News, while Santander quotes 65 to 75 percent for non-residents, per Santander. Many banks also want the loan repaid by a set age, 75 at Santander, per its mortgage page, which matters if you are buying with retirement in mind.

How banks read dollar income

A Portuguese bank converts your dollar income into euros to run its affordability test, and may count it at less than full value to allow for currency movements. The 45 percent cap then applies to all your loan payments together, including your US mortgage, car loans and student loans. So the size of your US debts matters as much as your salary.

• Employed: recent pay stubs, your last two years of W-2s and federal tax returns (Form 1040), and an employment letter. IRS tax return transcripts are a clean way to prove the returns were actually filed.
• Self-employed or business owners: two to three years of returns with the relevant schedules, business accounts and bank statements. Banks look at taxed profit, not turnover.
• Retirees: Social Security award letters, pension statements and evidence of regular retirement account withdrawals. The bank's age limit at the end of the term is often what decides the loan, rather than the income.

Bonuses, stock compensation and investment income are often counted only in part, if at all, unless you can show a long and steady history.

Credit checks and documents

Your US credit score does not travel. A Portuguese bank cannot pull it, so expect to supply a full credit report yourself, from one of the US credit bureaus, and sometimes a reference letter from your US bank, per the non-resident checklist from Portugal Property. The other usual documents, summarised by idealista:

• Passport and proof of your US address.
• A Portuguese tax number (NIF) and a Portuguese bank account for the repayments. See our guide to getting a NIF and bank account.
• Income documents as above, plus three to six months of bank statements.
• Statements for existing mortgages and loans.
• Once you have chosen a home, the signed CPCV and the property's registry and tax documents.

Some banks ask for translations or for documents to carry an apostille. Ask first, since requirements differ and many lenders used to American clients accept English originals.

Currency risk and moving dollars

The deposit, the taxes and the monthly payments are all in euros. If the dollar weakens, your payment costs more in dollars, and with most Portuguese mortgages tied to Euribor, the rate can move too. Build a margin into your budget for both.

On the deposit, the exchange rate and fees can swing the cost by thousands. A wire from a US bank at its standard rate is rarely the cheapest route, so compare a specialist currency provider, and consider fixing a rate once your completion date is set. Keep a clear paper trail of where the money came from, as the bank and the notary will ask about the source of funds.

IMT at 7.5 percent and the other costs

Since 25 May 2026, under Decreto-Lei 97/2026, a buyer who is not a Portuguese tax resident at the date of the deed pays a flat 7.5 percent IMT on residential property, with no exempt band, per Andersen. How it applies when only one of a couple is non-resident depends on the case, so ask the lawyer before you sign. On a €500,000 home that is €37,500, paid before the deed and not usually financed.

If you move and become tax resident within two years of buying, you can reclaim the difference between 7.5 percent and the normal rates, per Doutor Finanças. Add 0.8 percent stamp duty on the purchase and 0.6 percent on a loan of five years or more, per Bankinter, plus valuation, bank, deed and registration costs. Our guide to the full cost of buying covers each one.

What the US wants to know

This is not tax advice, and the details belong with a US tax adviser who knows Portugal. But you should know the two reports that commonly come up once you hold a Portuguese bank account, as set out in the IRS's own comparison of Form 8938 and FBAR:

• FBAR (FinCEN Form 114): filed with FinCEN, not with your tax return, if the combined value of your foreign financial accounts exceeds $10,000 at any time in the year. A deposit sitting in your Portuguese account before completion can easily cross that line.
• Form 8938 (FATCA): filed with your tax return when your specified foreign financial assets exceed higher thresholds, which depend on your filing status and on whether you live in the US or abroad.

The two are separate obligations, and filing one does not replace the other, per the IRS. Questions such as how currency movements on a euro loan or the interest you pay are treated on your US return are exactly the kind to take to a cross-border tax adviser before you sign.

Life and home insurance

The bank will normally require life insurance covering the outstanding loan and buildings insurance on the property. You can take the bank's policy, but you are free to buy equivalent cover from another insurer and to switch later, as long as it meets the bank's minimum terms, per Doutor Finanças. Expect a health questionnaire, and medical checks for older or larger borrowers. Answer it fully and honestly: an inaccurate answer can give the insurer grounds to refuse a claim later. If you already hold US life cover, ask the bank whether it can be assigned to the loan before buying a new policy.

How long it takes

Allow around three months from first application to signing when you apply from the US. Sending documents across the Atlantic, apostilles and time zones all add days. A sensible order:

1. Before you view: get your NIF, open a Portuguese account and ask for an approval in principle.
2. Offer accepted: sign the CPCV with a mortgage condition and a deed date that gives the bank time.
3. Valuation and approval: the bank values the home and issues its binding offer.
4. Deed: the purchase and mortgage are signed together, in person or through a power of attorney if you cannot fly over.