During the year 2022, financial institutions in Portugal carried out around two million new credit agreements, of which 11% were for foreign nationals, some of whom were retired
The data are from Banco de Portugal (BPStat) which recently made the study public, where it performs the sociodemographic characterization of people who contracted credits, with financial institutions residing in Portugal, during the year 2022. In global terms, these organizations carried out two million of new credit contracts that covered a universe of 1.5 million people, including Portuguese and foreigners, making a global value of 28 billion euros.
Banco de Portugal indicators reveal that 11% of people who obtained new loans during 2022 had foreign nationality, detailing that about half had Brazilian nationality. The study also advances with a peculiar fact: most foreigners who saw their credits approved lived in the Metropolitan Area of Lisbon. And adds that, in general terms, all indicators have grown compared to 2021, which means that the number of credits granted has increased, as has the universe of people who resorted to these financing.
It should be remembered that these figures do not represent all real estate deals or other acquisitions, as cars for instance, as they do not include the volume of deals in which the investor does not resort to any type of financing from financial institutions residing in Portugal.
Global data for 2022:
- During 2022, financial institutions authorized in Portugal signed two million new credit agreements.
- Around 1.5 million people had the credit they requested approved.
- 11% of people who obtained new financial credits are foreign nationals.
- 61% of mortgage loans granted were contracted with citizens aged up to 40 years.
In all types of credit, says the report, the number of women who were approved was higher than the number of men, except for car credit. However, the Bank of Portugal details that, when analyzing the contracted amounts – and except for home loans – the average value of credits obtained by men was, in 2022, higher than the average value of credits obtained by women.
What types of credit are analyzed?
- Mortgage loans
- Personal credit
- Auto Loan
In 2022, jointly or individually, 169 thousand people had their housing loan applications approved, with this number symbolizing an increase of two thousand people compared to 2021. In this universe and according to the Banco de Portugal report, two out of three people lived in the North region and in the Metropolitan Area of Lisbon; they mostly worked for others and had higher academic qualifications.
Mortgage credit in 2022:
- 1% was earned by retired citizens
- 19% was awarded to people aged 30 or under
- 61% contracted with people aged up to 40 years old
In this analysis, all loans obtained for the acquisition of own and permanent housing are considered; acquisition of secondary housing; construction or carrying out works (whether in own and permanent housing, secondary or with the aim of renting) and financing for the acquisition of land with a view to building a dwelling.
Who are the retirees who resorted to housing credit?
- About half are foreigners, mostly from the United States of America and Brazil
- In the Algarve region of the total housing credit granted to retired people, 85% was contracted with foreign citizens, the vast majority originating from Brazil, Sweden and the United States of America.
Brazilians led Auto Credit
About Car Loans, the report indicates that last year, 226 thousand people took out car loans and that this number represents an increase of 4 thousand people, compared to the data analyzed in 2021. On the other hand, 9% of car loans, that is, about 20 thousand people, is of foreign nationality. The document also says that within the scope of this type of financing, among the universe of citizens of foreign nationality, 70% are from Brazil. After all, of the approximately 20,000 foreigners who obtained car credit in 2022, approximately 14,000 people had Brazilian nationality.
Within the scope of Personal Credit, a financing that can be used for several purposes, during 2022, more than half a million citizens resorted to this type of loan. The analysis by Banco de Portugal indicates that 538 thousand people took out a personal loan during the year 2022 and that this number symbolizes an increase of 94 thousand people, compared to the year 2021.
Who are the people who resort to personal credit?
- Most of these citizens are aged 50 years or less.
- They work for others.
- In terms of academic qualifications, they have completed secondary or higher education.
- 8% are foreigners – which represents around 43 thousand people.
- Of these 43 thousand people, more than half (53%) have Brazilian nationality.
