As a foreigner, can I obtain a mortgage to purchase a rental property?

Yes you can. Whether you are a citizen or a foreigner, Portuguese banks do finance up to 80% of the value of the property as estimated by their expert. The bank’s valuation may be a bit different from the purchase price though, so that’s something to keep in mind. 

For example, you may agree with the buyer to acquire an apartment for 320,000 euros, but upon inspection, the expert may value the property at 300,000 euros, which puts the maximum amount that the bank will finance at 300k x 80% = 240,000 euros. However, this situation mostly happens with properties that necessitate full renovation.

PLEASE NOTE: If you are interested in purchasing a property to qualify for the Golden Visa program, your money needs to come from outside Portugal. This means that you cannot use a local mortgage to finance your investment.