PROPERTIES WITH A HABITATION LICENCE
A Habitation Licence certifies that a property meets all legal standards for residential use, approved by the local council.
Typical conditions:
- Financing up to: 80% (non-residents) or 90% (residents)
- Interest rates: Traditionally lower
- Type of loan: Standard residential mortgage
- Purpose: Primary residence, second home, or long-term rental
These properties are generally considered lower risk, offering the most favourable mortgage terms.
PROPERTIES WITH A SERVICE-USE LICENCE
A Service-Use Licence applies to properties designated for commercial or professional purposes — such as offices, studios, or serviced apartments — even when the layout resembles a residential space.
Typical conditions:
- Financing up to: 60–70%
- Interest rates: Increasingly attractive, often approaching those of residential mortgages
- Type of loan: Commercial or investment mortgage
- Purpose: Professional activity, investment, or mid-term rental under a service framework
In recent months, lenders have revised and reduced interest rates for service-use properties, reflecting the growing demand and value of this asset class, particularly in urban areas.
WHY THE LICENCE TYPE MATTERS
Before purchasing or applying for a mortgage, it is essential to confirm the property’s licence of use with the local council (Câmara Municipal).
This classification directly determines:
- The type of mortgage available
- The LTV ratio a bank can offer
- The final interest rate applicable
TAX DIFFERENCES: IMT AND STAMP DUTY
In addition to financing conditions, the type of property licence also impacts the taxes payable at purchase.
For Habitation Licence properties:
- IMT (Property Transfer Tax): Calculated on a progressive scale, with exemptions or reductions for primary residences up to certain values.
- Stamp Duty: 0.8% on the purchase price, plus 0.6% on the mortgage amount (if financed).
These benefits make residential purchases more tax-efficient for owner-occupiers.
For Service-Use Licence properties:
- IMT: Charged at a flat rate of 6.5%, with no exemptions, since the property is considered commercial or investment use.
- Stamp Duty: Also 0.8% on the purchase price and 0.6% on the loan amount.
This distinction can represent a significant difference in upfront costs, especially for high-value properties.
EXPERT GUIDANCE FROM SUBLIME MORTGAGE
EXPERT GUIDANCE FROM
SUBLIME MORTGAGE
At Sublime Mortgage, we offer tailored support at every stage of the financing process, ensuring:
✅ Verification of the property’s licence and credit eligibility
✅ Negotiation of the best available lending terms
✅ Comprehensive guidance through to completion
The market is evolving — and so are mortgage opportunities.
Our mission is to help you make informed, secure, and strategic decisions about your property investment in Portugal.
