Can foreigners get a mortgage in Italy?

Yes, foreigners can apply for mortgages in Italy. EU citizens and non-EU citizens with ties to Italy (such as residence permits or assets) are eligible, though conditions are stricter for non-residents.

How much can non-residents borrow for property in Italy?

Non-residents are typically offered a loan-to-value ratio of 50–60%, while residents may borrow up to 80% of the property’s value. The final amount depends on the bank’s internal valuation.

What documents do foreigners need for an Italian mortgage?

The main documents include a passport, codice fiscale, proof of income, bank statements, and the signed preliminary contract. Non-Italian documents generally require official translations and an apostille.

Financing Property in Italy: Bank Loans for Foreigners

Hand holding a house key and a calculator on the background

Buying a home in Italy often requires external financing, especially for foreign buyers.

While cash purchases are common, Italian banks do offer mortgages to non-residents under certain conditions (for a broader overview of funding options, see our guide on Financing Your Property Purchase and Renovation in Italy).

Who Can Apply

Italian banks generally grant mortgages to:

EU citizens with verifiable income and stable financial history.
Non-EU citizens who can demonstrate ties to Italy (e.g., residence permit, long-term work contract, or significant assets) – See our full guide to mortgage options for non-EU citizens.
Both residents and non-residents, although loan conditions are usually stricter for non-residents.

Loan-to-Value Ratios

Residents: Up to 80% of the property’s value.
Non-residents: Typically limited to 50–60%.
The bank’s valuation (perizia) may be lower than the agreed purchase price, and the mortgage amount is based on this internal appraisal.

Requirements and Documentation

Foreign buyers should be ready to provide:

Passport or ID card.
Codice Fiscale (Italian tax code).
Proof of income (payslips, tax returns, or pension statements).
Bank statements showing savings and assets.
Preliminary contract (compromesso) signed with the seller.

All non-Italian documents usually require official translations and an apostille.

Mortgage Types

Most mortgages in Italy are:

Fixed-rate (tasso fisso): Stability over time, higher initial rate.
Variable-rate (tasso variabile): Linked to the Euribor, can be cheaper at the start but less predictable.

Costs to Expect

Loan terms range from 10 to 30 years, but banks often prefer shorter durations for non-residents.

Bank fees: Around 1–2% of the loan amount.
Notary costs: Mandatory for the deed of sale and mortgage deed (see our guide on the Role of a Notaio in Italy).
Property valuation (perizia): €300–€500.
Taxes: Mortgage registration tax is 0.25% for first homes and 2% for second homes.

Practical Tips:

Start early – the mortgage process can take months.
Work with a bilingual mortgage broker – useful for navigating paperwork.
Keep a financial buffer – banks rarely cover full purchase costs.
Consider currency fluctuations – if your income is not in euros.

✅ Key takeaway:

Financing property in Italy as a foreigner is possible but requires preparation and realistic expectations. Non-residents face stricter limits, but with the right documents and planning, bank loans can open the door to your Italian home.

Useful Link 🌍

ABI – Italian Banking Association