The current economic context forces families to look for viable alternatives to finance their personal projects or the purchase of housing. More and more Portuguese people do this and adhere to an increasingly common technique to be able to apply for credit with better conditions. The high interest rate scenario in the domestic market motivated a silent flight in search of more favorable contracts.
The response to this phenomenon is the direct request for bank loans from financial institutions based abroad. Statistical information on this capital movement is provided by the newspaper based on data compiled by the national central bank. The volume of financing obtained outside Portuguese borders has increased sharply since 2010.
Official figures indicate that the amount requested by individuals in foreign banks has more than sixfold increased in the last decade. The accumulated value totaled 4,300 million euros in the first months of 2026 and essentially concerns long-term contracts. The same source indicates that short-term loans represent a very marginal portion of this financial pie.
Destinations preferred by individuals
The choice of creditors does not happen randomly and reflects a clear preference for traditionally strong and stable financial markets. Switzerland clearly leads the national preferences by assuming 25 percent of all financing granted to Portuguese families.
Luxembourg appears in second place in this international table with 21 percent of the total volume of money lent. The aforementioned source explains that these 2 European countries represent almost half of the capital that citizens residing in Portugal sought abroad.
The list of markets most sought after by consumers also includes nations such as France and Ireland with 8 percent each and neighboring Spain with 7 percent. Banco de Portugal assumes that it does not have specific information about the exact institutions that grant these funds.
The unknown purposes of money
The national banking regulator is also unaware of the exact purpose that customers give to funds obtained from entities based in other countries. Financial authorities are unable to determine whether these billions of euros are used to buy houses or for simple consumer needs.
The substantial growth in this recourse to foreign banks reflects greater authorization of international operations in the Portuguese market. The entry of new European Union entities authorized to grant capital in Portugal justifies a large part of this exponential increase.
The relative weight in national debt
The volume of money requested abroad has grown a lot but continues to represent a small portion of total household debt. Contracts signed with foreign banks currently account for 2.6 percent of the total universe of active loans in the country.
The global value of debts contracted by families reached historic highs during the month of January of 2026. The global amount surpassed the barrier of 165 billion euros and broke the previous record set at the end of 2010.
Care to be taken when hiring
Signing these bonds with non-resident entities requires basic precautions to guarantee the complete security of the financial transaction. The client must consult the lists of authorized institutions that the regulator makes available on its institutional portal.
Subjection to European supervisory rules constitutes a guarantee of transparency when carrying out this type of business across borders. Expresso further explains that this European legal framework offers additional protection similar to that applied to national banks.
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