Real Estate Financing in Italy: A Guide to Securing It

Published on October 3, 2025 and written by Cyril Jarnias

Italy, with its Mediterranean charm and rich cultural heritage, attracts many foreign investors eager to acquire property in this enchanting country. Whether for a primary residence, secondary home, or rental investment, the Italian real estate market offers excellent opportunities. However, the process of obtaining real estate financing in Italy may seem complex for non-residents. In this article, we will explore in detail the financing possibilities, required conditions, and necessary documents to make your Italian dream come true.

The Italian Dream Within Reach: Can Foreigners Obtain a Mortgage in Italy?

The good news is yes, foreigners can obtain real estate financing in Italy. The Italian banking system is open to international investors, whether residents or non-residents. However, it’s important to note that conditions and eligibility criteria may vary depending on your status and country of residence.

Italian banks generally offer mortgages to foreigners for purchasing residential properties, whether primary or secondary residences. Financing amounts can go up to 60% of the purchase price for a primary or secondary residence, and up to 50% of the property’s final value for renovation work.

It’s important to emphasize that Italian banks pay particular attention to the financial stability and repayment capacity of foreign borrowers. They will carefully examine your income, assets, and credit history before approving your loan application.

Interest rates for mortgages in Italy are generally competitive, but they may be slightly higher for non-residents due to the additional risk perceived by banks. In 2025, interest rates for mortgages in Italy typically range between 3.5% and 4% for residents, with a slight markup for non-residents.

The Winning Application: What Documents Are Needed to Obtain Real Estate Financing in Italy?

Preparing a strong application is crucial to maximize your chances of obtaining real estate financing in Italy. Italian banks typically require an exhaustive list of documents to evaluate your loan request. Here are the main documents you’ll need to provide:

Personal Documents:

• Copy of passport (signed and valid), including the first page with the biometric symbol
• Recent proof of address (dated within the last 6 months)
• Certificate of marital and family status (updated within the last 6 months)
• Copy of marriage certificate or document proving your marital status
• AIRE registration certificate for Italian citizens residing abroad
• Italian tax code (if you don’t have one, you can request it from the Italian revenue agency, Italian embassy, or through specialized companies)

Financial Documents:

• Latest complete tax return
• Bank account statements from the last 6 to 12 months, showing transaction history, bank name, and account holder name
• For employees: employment contract, last 6 to 12 pay stubs, and proof of latest salary
• For self-employed: balance sheet and income statement from the last two years
• Credit report or solvency certificate from your country of residence (with proof of score if applicable)
• Proof of savings you plan to use as personal contribution
• Detailed description of current loans or mortgages (payment amounts, outstanding balance, maturity date, and duration)

Property-Related Documents:

• Preliminary sales agreement or purchase promise for the property
• Recent property appraisal by a licensed expert
• For renovation projects: detailed work estimates and building permits

It’s crucial to provide documents translated into Italian by a certified translator. This will greatly facilitate the processing of your application by the Italian bank and avoid any unnecessary delays in the approval process.

Keys to Success: What Are the Requirements for Securing a Mortgage in Italy?

Obtaining real estate financing in Italy as a foreigner requires meeting certain specific conditions. Here are the main criteria that Italian banks consider when evaluating your loan application:

1. Financial Stability and Repayment Capacity

Italian banks place paramount importance on your ability to repay the loan. They will carefully examine your income, assets, and credit history. Generally, the monthly loan payments should not exceed 30% to 35% of your net monthly income.

2. Personal Contribution

Italian banks generally require a significant personal contribution. For non-residents, this contribution can reach 40% to 50% of the property’s purchase price. The larger your personal contribution, the better your chances of obtaining favorable loan terms.

3. Age and Loan Term

The borrower’s age is an important factor. Most Italian banks set a maximum age limit of 75 years at the date of the final loan payment. The maximum loan term is generally 25 years for non-residents.

4. Property Type and Location

The type of property you wish to purchase and its location also influence loan conditions. Italian banks generally prefer residential properties located in popular urban or tourist areas.

5. Borrower’s Insurance

Borrower’s insurance is mandatory to obtain a mortgage in Italy. This insurance covers loan repayment in case of the borrower’s death or disability. The cost of this insurance may vary depending on your age, health status, and loan amount.

6. Guarantees

Italian banks generally require a first-rank mortgage on the financed property. For non-residents, additional guarantees may be required, such as pledging financial assets or a bank guarantee.

7. Professional Stability

Italian banks value professional stability. If you’re an employee, a permanent contract with several years of seniority will be an advantage. For self-employed individuals, you’ll generally need to demonstrate at least two to three years of profitable activity.

8. Income Currency

Italian banks more easily grant loans to borrowers whose income is in euros or stable currencies like the US dollar, British pound, Swiss franc, or Canadian dollar. If your income is in another currency, the approval process could be more complex and terms less favorable.

Winning Strategies to Optimize Your Mortgage Application in Italy

To maximize your chances of obtaining advantageous real estate financing in Italy, here are some strategies to consider:

1. Use a Specialized Broker

A mortgage broker specialized in financing for non-residents in Italy can be a valuable asset. They know the specifics of the Italian market, the requirements of different banks, and can help you prepare a strong application. Additionally, they can negotiate on your behalf to obtain the best loan terms.

2. Build a Substantial Personal Contribution

The larger your personal contribution, the stronger your position to negotiate favorable loan terms. Aiming for a contribution of at least 40% of the purchase price can significantly improve your chances of obtaining financing.

3. Choose a Property in a Prime Area

Italian banks are generally more inclined to finance properties located in popular urban or tourist areas. Choosing a property in a region like Tuscany, the Northern Italian lakes, or major cities like Rome, Milan, or Florence can facilitate obtaining a loan.

4. Consider a Multi-Currency Mortgage

If your income is in a currency other than the euro, consider a multi-currency loan that allows you to repay in your income currency. This can reduce exchange rate risk and make your profile more attractive to Italian banks.

5. Prepare in Advance

Start preparing your financing application well before making an offer on a property. This will allow you to have a clear idea of your borrowing capacity and react quickly when you find the ideal property.

6. Be Transparent About Your Financial Situation

Transparency is crucial in the loan application process. Provide all requested information clearly and honestly. This will strengthen the bank’s confidence in your ability to repay the loan.

7. Consider a Bank Guarantee from Your Home Country

If you have difficulty obtaining a loan directly from an Italian bank, consider the possibility of obtaining a bank guarantee from your bank in your home country. This can reassure Italian banks and facilitate obtaining financing.

Obtaining real estate financing in Italy as a foreigner is entirely possible, but requires meticulous preparation and a thorough understanding of the specific requirements of the Italian market. By following the advice and strategies presented in this article, you will significantly increase your chances of realizing your Italian real estate dream.

Remember that each situation is unique and conditions may vary depending on your personal and financial profile. Therefore, it’s crucial to inform yourself well and, if possible, be accompanied by professionals experienced in international real estate transactions.