Buying a home in Italy is a dream for manyWhether it’s a rustic farmhouse in Tuscany, a seaside apartment on the Amalfi Coast, or a pied-à-terre in Rome, the good news is: yes, non-Italian residents can apply for a mortgage to purchase property in Italy. However, the process is not always straightforward.
Over the years, Italian banks and mortgage brokers have adopted a more cautious approach, particularly with foreign applicants. This is largely due to stricter Anti-Money Laundering regulations and the personal responsibility bank directors hold in verifying the source of funds. Additionally, banks no longer see real estate alone as sufficient collateral—especially if the buyer is based abroad and legal enforcement becomes complicated.
Is It Still Possible to Get a Mortgage in Italy as a Foreigner?
Yes—but with conditions. Some Italian banks are still open to working with non-residents, especially when the application is well-prepared and presented by a trusted intermediary.
Palma Law Firm specialize in guiding foreign clients through this process, leveraging established relationships with Italian brokers to help secure approvals.
Having legal assistance on your side often makes the difference between getting a “yes” instead of a “no.”
How the Mortgage Process to Buy a Property in Italy Works
The process of obtaining a mortgage in Italy as a foreigner includes several steps and requirements. Here’s what you can expect:
1. Choose a Property First
Unlike some countries where mortgage pre-approval is the norm, in Italy you generally need to have made an offer on a specific property before applying for a mortgage. This offer often includes a deposit, which could be non-refundable. Therefore, having a lawyer draft or review the offer is highly recommended.
Palma Law Firm guides you step by step, from preliminary due diligence to price negotiation and submitting the offer to the seller.
Learn more about legal support for buying property in Italy on the Real Estate Law Services page.
2. Prepare Your Documents
Italian banks will require a series of documents to assess your financial standing. These typically include:
- Valid ID or passport
- Proof of income (e.g., payslips or employment contract)
- Last tax return (translated into Italian and legalized via apostille or through the Italian consulate)
- Bank statements
- Proof of deposit or down payment
- Credit report (sometimes requested)
Depending on your country of residence, additional documents may be needed.
3. Mortgage Application and Evaluation
Once your documents are in order, the bank will:
- Evaluate your financial reliability
- Appoint a surveyor to assess the property’s market value (the basis for calculating the maximum loan amount)
- Charge application and appraisal fees
Usually, Italian banks will only lend up to 60–70% of the purchase price, based on the property’s evaluated value—not necessarily the agreed sale price.
4. Approval Timeline and Signing
If your application is successful, the mortgage is granted with a fixed or variable interest rate based on market conditions. The bank then drafts the mortgage agreement, which is signed in front of a notary, usually at the same time as the final deed of sale.
A bank officer is typically present at the notary’s office and issues a bank draft (assegno circolare) for the mortgage amount, which is delivered directly to the seller.
Learn more about legal support for buying property in Italy on the Real Estate Law Services page.
Key Facts About Italian Mortgages for Non-Residents
- Loan duration: Typically from 5 to 30 years
- Minimum loan amount: Around €70,000
- Loan-to-value ratio: Rarely exceeds 70%, and never reaches 100%
- Age limits: If the applicant is over 70, banks often require a co-signer
- Types of properties: Both residential and commercial (e.g., B&Bs, agriturismi, hotels) are eligible
Understanding Mortage Rates: TAN vs. APR
In Italy, there are two important terms related to mortgage interest:
- TAN (Tasso Annuo Nominale): The base annual interest rate applied to your mortgage
- APR (TAEG – Tasso Annuo Effettivo Globale): Includes all additional costs, such as insurance, notary fees, application fees, etc.
While TAN is used to calculate your monthly payments, APR gives a fuller picture of the total cost of borrowing.
Types of Mortgages: Fixed vs. Variable Rates
You’ll typically choose between:
- Fixed Rate: Predictable payments. Calculated as the spread (bank’s margin) + the IRS (Interest Rate Swap)
- Variable Rate: Payments fluctuate. Calculated as the spread + the Euribor (a European interbank rate)
Fixed rates offer stability; variable rates may save money if market rates stay low—but also pose risk.
Can I Deduct Mortgage Interest for Taxes?
Yes, but only if you become an Italian resident and the property is your primary residence.
Italian law allows a 19% tax deduction on mortgage interest expenses, capped at €4,000 per year. If the mortgage is shared (e.g., with a spouse), the deduction can be split proportionally.
Why Hiring an Italian Attorney Makes a Difference When Applying for a Mortgage to Buy Property in Italy
Purchasing real estate abroad is an exciting investment, but it can quickly become overwhelming—especially in countries with legal systems that differ significantly from those in the United States. Italy, with its rich culture, stunning landscapes, and appealing property market, is a popular destination for American buyers. However, the Italian legal and bureaucratic framework surrounding real estate purchases—especially those involving mortgages—can be challenging for non-residents to navigate.
If you’re planning to buy a home or investment property in Italy and need financing, working with a trusted legal partner such as Palma Law Firm can make all the difference. Here’s why partnering with experienced Italian attorneys can protect your investment and simplify the mortgage process.
1. Deep Knowledge of the Italian Mortgage and Banking System
Unlike in the U.S., where mortgage procedures are standardized and familiar, Italy’s banking system follows its own set of rules and requirements. Palma Law Firm specializes in the Italian financial and real estate sectors and are well-versed in the documentation, timeframes, and legal formalities necessary to secure mortgage approval. Whether you’re applying as a foreign resident or through a company structure, Palma Law Firm can guide you through the process, ensuring compliance with local laws, financial disclosures, and credit requirements.
2. Expert Legal Negotiation of Mortgage Terms
Getting approved for a mortgage is just one part of the process—understanding and negotiating the contract terms is just as critical. I act on your behalf to review and negotiate essential elements such as interest rates, repayment plans, early repayment penalties, and other financial conditions.
Every mortgage contract in Italy contains legal language and clauses that may have long-term implications on your finances. I make sure everything is clear, fair, and in your best interest—no hidden fees, no legal traps.
3. Protection of Your Legal and Financial Interests
When purchasing property abroad, especially in a civil law country like Italy, legal oversight is not just helpful—it’s absolutely essential. I provide full legal representation throughout the mortgage application and home-buying process.
That means reviewing contracts, identifying risks, and ensuring you’re never exposed to binding obligations—such as losing a deposit—without full awareness. With Palma Law Firm, you have a dedicated attorney ensuring your rights are protected from the moment you begin negotiations through to the final notarial deed.
4. Streamlined Communication with Italian Lenders
Dealing with Italian banks can be daunting, particularly when facing a language barrier or unfamiliar financial requirements. I act as your bilingual intermediary, managing communication with lenders on your behalf and ensuring that every document is submitted correctly and on time.
This direct, legally-informed communication significantly improves the efficiency of the mortgage application process—and helps prevent costly delays or miscommunications that could jeopardize your deal.
5. Peace of Mind Throughout the Entire Process
International real estate transactions are complex, but they don’t have to be stressful. By working with Palma Law Firm, you gain more than just legal support—you gain peace of mind. I’ll ensure that:
- The mortgage process is fully compliant with Italian regulations
- Your documents are accurate and complete
- No detail is overlooked that could later become a financial or legal issue
My client-focused approach is tailored specifically to foreign buyers, especially those from the United States who are unfamiliar with the Italian legal system. I provide clear, actionable guidance at each step to make your investment secure and your experience seamless.
Learn more about legal support for buying property in Italy on the Real Estate Law Services page.
Why American Buyers Need to Be Especially Cautious
It’s important to note that Italian property laws differ greatly from those in the U.S. or U.K. For instance, in Italy, signing a simple purchase offer (even before obtaining a mortgage) can legally bind you to the transaction—and put you at risk of losing your deposit or incurring penalties if you later withdraw. Without expert guidance, buyers may unknowingly commit to obligations that are legally enforceable under Italian law, even before they technically own the property.
Final Thoughts
While obtaining a mortgage in Italy as a foreigner may seem complicated, it’s entirely feasible with the right preparation and legal support. From preliminary due diligence to the final notary signing, every step requires careful planning and attention to detail. With decades of experience, Palma Law Firm is ready to assist you from start to finish, offering both legal expertise and a network of trusted financial partners to help make your Italian property dream a reality.
👉 Learn more about legal support for buying property in Italy on the Real Estate Law Services page.
2 thoughts on “How to Get a Mortgage in Italy as a foreigner: A Comprehensive Guide”
I’d like to have more information as a Canadian to buy something in Calabria. New project
Dear Carol,
I would be pleased to provide you with detailed information on the legal and procedural aspects of buying property as a Canadian citizen.
Please feel free to contact me directly for professional assistance regarding your project.