It’s not a secret. Most Italians still prefer using cash when it comes to transactions, and this applies to property purchases too. Only around 40% of home buyers go through a mortgage, with the remaining 60% being all-cash purchases.
Even if you have capital though, knowing your financing options is essential. Read our guide to understand your options for mortgages, loans, and to fund your renovation in Le Marche and beyond.
Requirements: Italians vs Foreign Buyers
The first thing to mention is that there is a difference between personal loans and mortgages going towards a home purchase. You should know that home loans usually come with stricter rules. These vary from bank to bank.
Also, foreigners (especially non-residents) will need to provide more guarantees. Italy offers specific mortgages and loans for foreigners, though terms differ from country to country (mainly EU vs non-EU). Again, each bank will apply different rules and have different requirements.
Being able to show a credit history in Italy will definitely help. Talking to a bank or a specialised credit advisor is the best way to start.
Property Purchase Financing:
- Italian mortgages: Typically up to 70%–80% of purchase price for non-residents; may require proof of income and local bank account.
- International banks: Some banks in your home country provide cross-border property loans.
- Private lenders: Usually higher interest but flexible.
Renovation Loans:
- Bank personal loans: Can cover 80–100% of renovation costs for small projects.
- Eco-bonuses and incentives: Italy offers tax deductions for energy-efficient upgrades and seismic retrofitting.
- Structured financing: Larger renovations may benefit from staged payments tied to project milestones.
Tips for Success:
- Maintain detailed budgets and cost projections.
- Open a local bank account early to facilitate transfers and payments.
- Compare interest rates and fees across multiple banks.
- Factor in notary fees, taxes, and permit costs when planning total financing.
Related Articles:
• Foreign Buyer Practicalities: Residency, Visas, Inheritance