Living in Portugal means better loan conditions?
The major difference for who lives in Portugal is the possibility of applying for a principal house ( HPP – Habitação Própria Permanente) and that means a saving of around 1,000€ in transaction tax, regarding a Secondary House ( only option, if you are not resident).
However, being a non-resident, is the only way that allows customers (in certain banks and for minimum downpayments of 25%) to be exempt of life insurance, for the duration of the contract.
And sometimes the savings on insurances are bigger than extra taxes for secondary home, depending a lot on age of customers and amount financed.
The other difference between resident and non-resident is the maximum percentage of amount financed allowed. In fact, if you are not resident the maximum LTV ( Loan to Value) will vary from 60% to 80%, depending on customer nationality.
However, being a resident will only allow to increase those percentages if customer incomes are generated in Portugal, paying taxes in Portugal.
Otherwise, nationality criteria will apply.
In conclusion, conditions can be different being or not being a resident, namely in maximum LTV, amount of transaction Tax (IMT) and need for insurance life but it is not clear that loan conditions will be better for a resident in Portugal, than for a non-resident.