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Italy – Property Financing

Mortgages for Foreign Nationals in Italy

Italy, renowned for its rich history, stunning landscapes, and cultural heritage, is a popular destination for foreigners looking to invest in real estate. If you’re considering purchasing property in Italy, you may have questions about obtaining a mortgage, the lenders that offer them, the required deposit, and the responsibilities associated with property ownership. In this comprehensive guide, we will address these questions and provide valuable insights into the Italian property market.

Availability of Mortgages for Foreign Nationals

Italy welcomes foreign nationals who wish to buy property in the country, and it is possible for foreigners to obtain mortgages. However, there are certain considerations to keep in mind:

  • Residency Status: Your residency status in Italy can affect your eligibility for a mortgage. Some lenders may offer better terms to residents, but non-residents can also access mortgage options.
  • Financial Stability: Lenders in Italy will assess your financial stability, including your income, credit history, and ability to repay the mortgage. Having a steady source of income and a good credit score is advantageous.
  • Loan-to-Value (LTV) Ratio: The LTV ratio represents the loan amount as a percentage of the property’s value. In Italy, lenders typically finance up to 60% to 80% of the property’s value.

To explore your mortgage options, it is advisable to consult with local banks, financial institutions, or mortgage brokers who specialize in assisting foreign nationals.

Local Lenders Providing Mortgages

Italy has a well-developed banking sector, and several local banks and lending institutions offer mortgage services to both residents and non-residents. Here are some prominent lenders:

These lenders offer various mortgage products with competitive interest rates and flexible terms. It is advisable to research multiple options, compare rates, and consider seeking pre-approval for your mortgage.

Deposit Requirements for Property Purchases

When buying property in Italy, you will need to provide a deposit as a percentage of the property’s purchase price. Deposit requirements can vary based on several factors:


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  • Property Value: The deposit amount often depends on the property’s value. Typically, a deposit of 20% to 30% of the property’s price is required.
  • Mortgage Type: The type of mortgage you choose, whether it’s a fixed-rate or variable-rate mortgage, can influence the deposit amount.
  • Lender’s Policies: Different lenders may have varying deposit requirements. Some may ask for a higher or lower deposit percentage.

It’s important to clarify the deposit requirements with your chosen lender and seek professional advice to understand your financial obligations when purchasing property in Italy.

Responsibilities for Property Owners

Once you become a property owner in Italy, you will have various responsibilities related to the property. Here are some key responsibilities:

  • Property Taxes: Property owners in Italy are responsible for paying property taxes, including the Imposta Municipale Unica (IMU), which is a municipal property tax.
  • Maintenance and Upkeep: Property owners must maintain their properties in good condition, ensuring necessary repairs and regular upkeep.
  • Utilities: Property owners are responsible for utility bills, including water, electricity, and gas.
  • Mortgage Repayment: If you have obtained a mortgage, you are responsible for making regular mortgage payments as agreed upon with your lender.

Additionally, property owners should be aware of their rights and obligations under Italian law, which may include regulations related to property use, renovations, and more. Consulting with legal professionals and property management experts can help ensure compliance with all local regulations.

For more information on mortgages and property purchase in Italy, you can visit the official websites of UniCredit, Intesa Sanpaolo, UBI Banca, and Banca Popolare dell’Emilia Romagna (BPER).

In conclusion, buying property in Italy as a foreign national is a viable option, with mortgages available from local lenders. Your eligibility for a mortgage will depend on factors such as residency status, income, and creditworthiness. Deposit requirements vary but can be influenced by the property’s value and mortgage type.

As a property owner, you will take on responsibilities such as property taxes, mortgage repayments, maintenance, utilities, and insurance. To explore mortgage options and gain a better understanding of the Italian property market, it’s recommended to consult with local banks and financial experts.


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