Buying Property with a D7 or Digital Nomad Visa
Portugal's D7 Visa (Passive Income) and Digital Nomad Visa (Remote Work) remain the most popular paths for non-EU citizens to call Portugal home. However, as of 2026, the lending landscape and financial requirements have shifted.
The good news: Portuguese banks do lend to D7 and Digital Nomad visa holders. The challenge: Banks have become more conservative regarding foreign income stability and "Debt-to-Income" (DSTI) ratios.
1. Updated Financial Thresholds (2025/2026)
Portugal's minimum wage increases have directly impacted the income you must prove to both AIMA (Agency for Integration, Migration and Asylum) and the banks.
- D7 Visa (Passive Income): While the legal baseline is now €920 per month, many consulates (particularly in the US and UK) prefer to see a "comfortable" margin of €1,200+ to account for the actual cost of living in hubs like Lisbon, Porto, or Cascais.
- Digital Nomad Visa (Remote Workers): Requirements are strictly 4x the minimum wage. In 2026, this means you generally need to prove €3,680+ per month in gross income (before tax). While consulates check bank deposits, the official requirement is based on your gross contract or invoice amount.
- Bank Balance "Gold Standard": While the legal minimum is €11,040 per adult (12 months of minimum wage), for a 100% "bulletproof" application, lawyers now frequently suggest €15,000+ for single applicants. Important: This amount should be deposited in a Portuguese bank before your visa interview, as consulates increasingly ignore foreign savings accounts during the "means of subsistence" check.
2. Refined LTV (Loan-to-Value) Expectations
While you may hear about 90% financing, that is almost exclusively reserved for Portuguese tax residents.
- The "90% Myth": Non-residents should generally expect 70% LTV (a 30% deposit). However, 75-80% is sometimes possible for high-income earners working for "Tier 1" employers (e.g., Google, NHS, or Big Four firms).
- The 90% Option: You will typically not be considered for 90% financing until you have moved your tax residency to Portugal and filed at least one full year of Portuguese tax returns (IRS).
- The Under-35 Incentive: In 2026, the Portuguese government offers IMT (Transfer Tax) exemptions and state-backed guarantees for buyers under age 35 buying their first permanent home. However, this usually requires being a Portuguese tax resident first.
- Term Limits: For non-residents, the maximum mortgage term is often capped at 30 years, whereas residents can sometimes still get 35-40 years depending on age.
- Wait Times: Some banks require 6 months of residency; others lend immediately if the down payment is 30% or higher.
3. The "DSTI" (Debt-to-Income) Cap
In 2026, banks are scrutinizing your total global debt more than ever.
- The Limit: Your total monthly debt payments—including your existing loans abroad plus the new Portuguese mortgage—cannot exceed 35% to 50% of your net monthly income.
- The Sweet Spot: For the best chance of approval and lower interest rates, aim to keep your total global debt under 35% of your net income.
4. Tax Efficiency Note (Replacing the old NHR)
The original NHR program is closed to new applicants. It has been replaced by IFICI (NHR 2.0), which has much stricter entry requirements.
- How it Works: IFICI is available to freelancers and remote workers, but only if they meet two strict criteria:
- Their job is on the "High Value Added" list (e.g., IT specialists, Engineers, Scientists, Doctors).
- They work for a qualifying entity (e.g., a certified Portuguese startup, a research center, or a company that exports >50% of its turnover).
- The "Gotcha": Standard remote workers for foreign companies (e.g., a US-based marketing manager) cannot access NHR 2.0. If you work remotely for a foreign company with no legal connection to Portugal, you will likely be taxed at standard progressive rates (up to 48%).
- The 183-Day Rule: To maintain IFICI or any tax benefits, you must spend at least 183 days per year in Portugal. Falling below this can result in the loss of your tax status and a surprise bill at standard rates.
- The Upside: Even without NHR 2.0, most applicants benefit from Double Taxation Agreements (DTA) to ensure you aren't taxed twice on the same income.
5. Bank Valuation Risk: The "Gotcha"
A common hurdle in the current market is the discrepancy between sale price and bank valuation, compounded by new regulatory stress tests.
- The Lower-Of Rule: Banks lend based on the lower of the purchase price or the independent appraisal.
- Example: You buy for €300k, but the appraiser says it’s worth €280k. The bank will only lend 70% of the €280k.
- The 2026 Stress Test: Banks are now required to "stress test" your affordability by adding a hypothetical 0.5% to 1.5% to the current interest rate. If your DSTI exceeds 50% under this "fake" higher rate, your loan will be rejected even if you can afford the current rate.
- Tip: Fixed Rates are a popular way to bypass the uncertainty of future stress tests, as banks sometimes apply a lower stress margin to long-term fixed loans.
- Actionable Advice: Always include a "subject to valuation" clause in your promissory contract (CPCV) to protect your deposit.
Revised Checklist for 2026 Applications
- Visa/Residence Card: Valid proof of legal stay.
- Credit Report: An official report from your home country (e.g., Experian, Equifax, or TransUnion).
- No Bank Translations Needed: While AIMA still requires Portuguese translations for your visa, most major banks (Santander, Novo Banco, BPI) now accept financial docs in English, saving you €200–€500 in mortgage prep.
- Bank Statements: 6 months showing income deposits and global debt payments.
- Life Insurance: The loan must be fully paid off by age 75 (e.g., a 60-year-old can only get a 15-year term). Note: For applicants over 50, the cost of mandatory insurance spikes significantly and can cause the DSTI ratio to fail.
- NIF: Portuguese Tax ID.
Ready to Secure Your Portuguese Home?
Navigating foreign income and 2026 lending criteria requires specialized expertise. We specialize in explaining D7 and Nomad income profiles to Portuguese credit committees.
