Getting a Mortgage in Italy as a UK Foreigner (2024 Guide)

TL;DR: If you’re a UK citizen or non-resident wanting a mortgage in Italy as a foreigner, you can generally borrow up to 60% of the property’s value. Lenders typically prefer you to be no older than 75 at the end of the loan term, and your mortgage payments shouldn’t be more than 35% of your income. Interest rates for an Italian mortgage for non-residents currently range from 2.7% to 4%, and the approval process usually takes about 8 to 10 weeks.

Imagine finding your dream home in Italy—perhaps a quiet villa in Tuscany or a modern apartment in Rome. For many, splitting their time between countries means enjoying the best of both worlds. But getting a home abroad, especially when dealing with finances, can feel daunting. If you’re a UK citizen planning to buy property in Italy, understanding the mortgage process from the start is key to turning that dream into reality without unexpected headaches or communication issues.

Looking to buy a property in Italy? Whether you dream of a holiday retreat, an investment, or a permanent move, you’ll need to arrange your finances. This guide offers a full overview of how to get a mortgage in Italy as a foreigner. It covers important details for UK citizens and other non-residents, explaining the different types of mortgages, current interest rates, common fees, what you need to be eligible, and how to submit your application. For those managing life across borders, ensuring a smooth transition is key, and a good moving abroad checklist can help. This guide is designed to help you navigate the process smoothly.

Can Foreigners Get a Mortgage in Italy?

Yes, Italian banks and mortgage companies do offer loans to people from other countries, not just those who live in Italy. This means you can likely get an Italian mortgage for non-residents to purchase your property, even if you don’t live there full-time. However, as an international buyer, you might face some extra hurdles and stricter rules. These hurdles can include navigating different legal systems, understanding Italian financial terms, and dealing with potentially more paperwork than local buyers.

Here are the main points you should know:

• Loan-to-Value (LTV) limits: You might only be able to borrow up to 60% of the property’s total value. For Italian citizens and residents, this limit is usually higher, around 80%. This means you will need to provide a larger portion of the property’s purchase price as a deposit.
• Finding a mortgage: It can be harder to find suitable mortgages for non-residents because they aren’t always promoted widely, and online applications might not be available. You may need to work with a specialist broker who focuses on international buyers to help you find and apply for the right loan. These brokers have special knowledge of the market for foreign applicants.
• Timing your application: It could be simpler to apply for your mortgage in Italy as a foreigner before you move. Italian banks often prefer to see proof of stable income and a clear credit history from the past 2 to 5 years before they agree to lend money. If you’re planning to split your time, keeping a consistent financial record in your home country is important.
• Lender rules: Remember that each bank has its own rules and steps for approving loans. It’s a good idea to speak with several banks and lenders to get detailed information that fits your situation. What one bank requires, another might not.

Does Brexit Affect Getting a Mortgage in Italy from the UK?

Many people from the UK wonder if it’s become harder for them to get a mortgage in Italy from the UK since Brexit. The good news is that Italian mortgage providers still welcome applications from both residents and non-residents, regardless of where they are from.

However, there is one rule called the European Mortgage Directive that could make things a bit more complex. This law created common rules for mortgages across countries in the European Union. It can sometimes make it harder for people from other countries to get a mortgage if their income is not in euros (EUR). If you find this is causing problems with your application, it’s wise to get professional advice. It’s also key to have a reliable way to communicate with your UK financial institutions, for instance, by ensuring you can keep your UK number abroad. This helps you manage your finances smoothly across borders.

What Are the Mortgage Eligibility Rules for UK Citizens in Italy?

The specific rules for getting a mortgage change from one lender to another. For UK citizens, even after Brexit, the requirements are much like those for people from EU countries. You will generally need to meet these conditions:

• Deposit funds: You must have enough money for the deposit. Having these funds readily available is critical, as lenders require a substantial upfront payment. For non-residents and individuals from other countries, the required deposit can be quite high, sometimes reaching up to 40% of the property’s total value. This larger deposit requirement is a key difference compared to what Italian residents might need.
• Age limit: You should not be older than 75 years when the mortgage loan finishes. This means the total length of the mortgage will depend on your age at the time of application.
• Italian bank account: You will need an Italian bank account to make your monthly mortgage payments. For people living between countries, understanding what happens to your number when you move abroad is crucial for maintaining contact with your bank and other essential services. Making sure you can easily access and manage your money across borders is important for maintaining your property and staying connected.
• Stable income: You must have a regular income. Your total mortgage payments should not be more than 35% of your income. Lenders will carefully assess your income and outgoings to ensure you can comfortably afford the repayments.
• Credit history: Lenders look for 2 to 5 years of good credit history and a stable, verifiable income. A clean credit record shows that you manage your money responsibly.
• Property status: The property you want to buy must be legally available for sale, owned correctly, and meet any other specific conditions set by the lender. The bank will verify the property’s legal standing before approving a loan.

Is It Easy to Get a Mortgage in Italy?

Even if you meet all the basic requirements, getting a mortgage in Italy as a foreigner can be a complex and lengthy process. It often involves a lot of documents and legal steps. Just like in many other countries, Italian banks focus heavily on whether you can afford the loan and how much financial risk you pose. You will need to give very accurate and detailed information about your income, how much you earn, your regular expenses, and any assets you own.

There are also a few extra things that can make it harder:

• Language barrier: You might find it tough if you don’t speak Italian well. Official communications and paperwork will be in Italian. It’s a good idea to get help from an English-speaking broker, a professional translator, or a friend who speaks Italian fluently. Keeping your phone number active while you coordinate with these contacts is crucial for smooth communication.
• Document translation: If your documents are not in Italian, you will likely need to have them officially translated and certified. This adds another layer of complexity and cost to the application process.
• Financial history: You could face problems if you have a poor credit history or too many outstanding debts. Lenders want to see a clear and responsible financial past, showing that you manage your money wisely, whether through cash or card payments in Italy or other methods.

What is the Step-by-Step Process to Apply for an Italian Mortgage as a Foreigner?

To help you understand what’s involved, here is a step-by-step guide on how to apply for an Italian mortgage as a foreigner:

1. Get an Italian tax code ( Codice Fiscale ): This unique personal code is absolutely essential for almost all financial and bureaucratic dealings in Italy, including everything from opening a bank account to making a property purchase. Even if you are a UK resident, you can obtain this code for free. You will typically need to apply online through the Italian Consulate located in the UK, ensuring you have it before proceeding with other steps.
2. Find a suitable mortgage: While you can apply directly to banks, it’s often recommended to use a specialist broker. They can help you find and apply for a mortgage that suits your specific needs as a non-resident, saving you time and effort.
3. Open an Italian bank account: You will need your Codice Fiscale to open a bank account in Italy. This account will be used for your mortgage repayments and other property-related costs. For those managing life across borders, having an easy way to keep your Spanish number abroad or another home country number can be helpful for account verification and receiving important notifications.
4. Start your property search: Once you find a property you like and your offer is accepted, you will sign a preliminary agreement. At this point, you usually pay a deposit to secure the property.
5. Collect your documents: Make sure you gather all the necessary paperwork. Everything will need to be translated into Italian and officially certified by a notary if required, to be legally acceptable.
6. Submit your mortgage application: Send your complete application to the bank or lender. They will likely arrange for a valuation or appraisal of the property. There may be a fee for this service, which assesses the property’s market value.
7. Receive a mortgage offer: The lender will then provide you with a mortgage offer. It is very important to read all the details, terms, and conditions carefully before you accept it, and seek legal advice if anything is unclear.
8. Arrange fund transfers: Plan how you will transfer the necessary funds to cover any mortgage application fees, deposit, and other costs from your home country to Italy.
9. Sign the mortgage agreement: You will sign the final mortgage agreement in front of a public notary (notaio). The notary plays a crucial role in Italian property transactions, ensuring everything is legally correct and binding.

What Documents Do Non-Residents Need for an Italian Mortgage?

The precise documents required for an Italian mortgage for non-residents can differ from one lender to another. However, here’s a general list of what you will probably need to prepare:

• Mortgage application form: Your fully completed application form, filled out accurately and completely.
• UK passport copies: Clear copies of your valid UK passport. These will be used for identification and verification purposes.
• Codice Fiscale: Your Italian tax code, which is mandatory for all financial transactions in Italy.
• Proof of income: This category is vital and includes documents like your most recent payslips, copies of your employment contracts, and your tax returns. If you work for yourself or are self-employed, you will need to provide detailed financial statements and your tax returns from previous years. The goal is to clearly show a stable and reliable income stream.
• Recent bank statements: These statements show your financial activity, provide proof of your savings, and demonstrate your ability to manage money over time.
• Proof of address: Documents like recent utility bills or bank statements showing your current residential address.
• Preliminary sales agreement: The signed agreement for the property you are planning to purchase, which confirms the details of the sale.

It is crucial to remember that all your documents will need to be translated into Italian and officially certified by a notary or other authorized professional. This ensures they are legally valid for your application and accepted by Italian institutions.

How Long Does it Take to Get a Mortgage in Italy?

Typically, getting approval for a mortgage in Italy as a foreigner takes about 8 to 10 weeks. To prevent any delays, it’s extremely important to have all your paperwork perfectly organized and ready before you even start the application process. This means double-checking every document, ensuring it is complete, correct, and translated as needed. Even minor mistakes or missing items in your application can lead to significant delays, extending the overall timeline beyond the typical 8-10 weeks. Keeping your communication channels open, such as your US number abroad if you’re a US citizen, can also help speed up any necessary contacts or clarifications from abroad.

What Are the Fees and Costs for an Italian Mortgage?

When applying for a mortgage in Italy as a foreigner, you will usually need to pay several fees. The most important ones to be aware of are fees for property valuation, mortgage arrangement, and notary services. If you decide to use a mortgage broker, they will also charge for their help. Understanding these costs upfront is vital for budgeting.

What are Valuation Fees?

If your chosen lender needs to assess the property’s worth, you can expect to pay a valuation survey fee. This typically falls between €300 and €500 EUR. It’s crucial to understand that this valuation survey only checks the market value of the property. It will not find any problems with the building’s structure, identify maintenance needs, or uncover other hidden issues. For that, you would need to arrange your own separate building survey, which would be an additional cost.

What are Mortgage Arrangement Fees?

This is the main fee you pay to the lender for setting up your mortgage. The exact amount will depend on the specific bank or lender, the type of mortgage product you choose, and the size of your loan. Generally, you can expect these arrangement fees to be around 0.5% to 2% of the total loan amount. This fee compensates the bank for processing your loan application and setting up the mortgage.

What are Notary Fees?

In Italy, the public notary, or notaio, plays a very important role in all property sales and mortgage agreements. Their duties include overseeing the signing of the mortgage agreement and other legal work, ensuring everything is legally binding. This fee covers their legal work in making sure the property transaction and mortgage agreement are legal and binding, protecting all parties involved. The cost for the notary’s essential services is typically around 1% of the total mortgage amount.

What Other Fees and Costs Might There Be?

You might come across a few other costs when applying for an Italian mortgage for non-residents:

• Broker fees: If you use a mortgage broker, their fees will vary by provider. You should always ask for clear quotes upfront to understand their charges. These fees are typically between 1.5% and 4% of the loan amount.
• International transfer fees: If you need to send money between different countries to cover your deposit or any of the fees mentioned above, you might face transfer fees from banks or payment services. These costs can add up, so it’s wise to factor them into your budget.

Which Italian Banks Offer Mortgages to Foreigners?

If you are already living in Italy and are an official resident, you will likely have the same range of mortgage choices as an Italian citizen. The rules for applying will also be quite similar. However, if you are not living in Italy, you might find that you have fewer options available as a foreigner. You may also need to meet stricter requirements to qualify for an Italian mortgage for non-residents.

To help you begin your search for an Italian mortgage for non-residents, here are some Italian banks that are known to offer mortgages to people from other countries and expats ¹:

• BNP Paribas
• UniCredit
• Intesa Sanpaolo
• Monte dei Paschi di Siena
• Banco BPM

You should contact these banks directly or through a specialist broker to inquire about their specific offerings for foreign buyers.

What Are the Current Mortgage Rates in Italy?

As of 2025, the typical mortgage interest rate in Italy ranges from 2.7% to 4%. However, it’s important to know that these rates can vary a lot depending on the specific bank or lender and the type of mortgage product you choose.

The interest rate you are offered will also be based on your personal financial situation and whether you meet the eligibility rules. Factors like the total amount you wish to borrow and the size of your deposit will influence the final rate. For example, a larger deposit might lead to a more favorable rate. Keep in mind that mortgage rates change regularly, so you should always check the most up-to-date rates when you are ready to make your mortgage in Italy as a foreigner application.

Can You Get a UK Mortgage to Buy Property in Italy?

It can be quite challenging to get a mortgage in the UK specifically to buy a property in Italy. Most UK banks and lenders do not offer what are called ‘overseas mortgages’ that are secured against properties located in other countries. Their lending policies are usually focused on properties within the UK.

One possible option might be to remortgage a property you already own in the UK. This means taking out a new mortgage on your existing UK home, potentially borrowing a larger amount, to free up funds for your purchase in Italy. However, it is extremely important that you only consider this if you are absolutely certain you can afford the increased monthly repayments. It is also highly recommended to get professional financial advice before deciding to do this, especially if you are living or planning to live partially abroad and need to manage payments across different currencies and time zones. Ensuring you have robust communication, like maintaining your Australian number abroad for contacts in Australia, can be critical for such complex financial arrangements.

Do Banks Offer Buy-to-Let (BTL) Mortgages in Italy?

Mortgage rules in Italy are somewhat different from those in the UK. Italian lenders do not typically put specific restrictions on how you use your property once you have bought it. This means there isn’t a specific product known as a ‘buy-to-let’ (BTL) mortgage in Italy, as you might find in the UK. The type of loan you get for an investment property is generally the same as for a primary residence. You won’t find a separate category for BTL.

Can You Refinance a Mortgage in Italy?

Yes, it is possible to refinance your mortgage in Italy as a foreigner. You have two main choices if you want to do this: you can move your current mortgage to a completely new lender, or you can talk to your existing lender and renegotiate the terms of your current loan. Both options aim to give you better terms or rates.

Thanks to a law put in place in Italy in 2007, you should be able to refinance without facing any extra costs. Remortgaging, can also be a way to borrow more money against your property. For example, you might use the extra funds to buy another property without needing to sell your first one. However, it’s crucial to make sure you can comfortably afford all the repayments and that you are not taking on too much debt, which could strain your finances, especially when managing them from abroad. Always assess your financial situation carefully before taking on more debt.

What Types of Mortgages Are Available in Italy?

You will find that Italy offers many of the same types of mortgages as the UK. The two most common choices are fixed-rate mortgages and variable-rate mortgages. Another option that is becoming more popular is the green mortgage, designed for environmentally friendly properties. Let’s look at each of these in more detail:

What are Fixed-Rate Mortgages?

Fixed-rate mortgages are a very popular type of home loan. They usually provide lower interest rates and more financial stability because your monthly payments remain the same throughout the loan term. In Italy, the interest rate for a fixed-rate mortgage usually stays the same for the entire length of the loan, unlike in some countries like the UK where the rate might only be fixed for a few years. This offers consistent, predictable payments.

However, there are also potential downsides to a fixed-rate mortgage. For example, if general interest rates in the market decrease, you might miss out on the opportunity for cheaper monthly repayments. Additionally, the initial interest rate for a fixed-rate mortgage can sometimes be higher compared to what you might find with a variable-rate option at the start, as it offers greater security.

What are Variable-Rate Mortgages?

In Italy, variable-rate mortgages are tied to a benchmark rate called EURIBOR (European InterBank Offered Rate), which is set by the European Central Bank. This means that the interest rate can go up or down over time, following changes in the wider economic market. As a result, your monthly mortgage repayments could become higher or lower, depending on how the EURIBOR changes. This offers less payment predictability but can sometimes lead to lower overall costs if rates fall.

What are Green Mortgages?

Green mortgages are becoming more common in Italy. These mortgages offer better interest rates for properties that have high energy efficiency ratings, such as those with excellent insulation or solar panels. Some lenders also provide improved rates to homeowners who plan to make environmentally friendly upgrades to their property, helping them save money while reducing their carbon footprint. This encourages sustainable living and property development.

What Are the Final Tips for Getting a Mortgage in Italy as a Non-Resident?

To give yourself the best possible chance of being approved for an Italian mortgage for non-residents, keep these important tips in mind:

• Apply before you move: Think about applying for your mortgage before you permanently move to Italy. This way, you can use your existing credit history and income records from the UK to show Italian lenders that you are a reliable borrower. If you wait until after you move, you will be starting with no credit history in Italy, which can make it harder to get a loan.
• Have a substantial deposit: Make sure you have a large enough deposit ready. As a non-resident, you might need a deposit as high as 40% of the property value, so plan your savings carefully.
• Seek expert advice: Get specialized advice for foreign applicants. A professional, such as a mortgage broker specializing in international clients, can help you navigate the complex process and find the most suitable mortgage in Italy as a foreigner.
• Organize your documents: Ensure all your paperwork is perfectly organized. This is especially true for documents related to your income, employment history, and savings. Remember that many documents will also need to be translated into Italian and officially certified. When dealing with these legal and financial processes, reliable communication is essential. Consider options for managing your phone connection, perhaps through services like eSIM vs physical SIM when you keep your number, to ensure you’re always reachable.

Frequently Asked Questions About Mortgages in Italy

Here are some common questions people ask about getting a mortgage in Italy as a foreigner:

Do You Need an Italian Bank Account to Buy a House in Italy?

Yes, you will generally need to open an Italian bank account to purchase a home and secure a mortgage in Italy. Even if it’s not strictly required by every lender, having an account in euros can make managing the process of buying and selling property much simpler and more convenient. This includes making regular mortgage payments, receiving any rental income, and handling other property-related expenses with ease.

Can You Get a 100% Mortgage in Italy?

While it is difficult, getting a mortgage that covers 100% of the property’s value in Italy is not entirely impossible. However, it is generally rare and not usually possible as a foreign citizen or non-resident. Lenders typically offer loan-to-value (LTV) ratios of up to 60% for these types of applicants, meaning you will need a significant deposit to cover the remaining portion of the property’s price.

What is the Age Limit for Mortgages in Italy?

Lenders in Italy often have an age limit for mortgage applicants. They may decline applications from individuals who would be older than 75 years by the time the mortgage loan is scheduled to end. This means the length of the loan you can take out might be shorter if you are older when you apply, to ensure the loan is fully repaid before this age threshold.

Footnotes

1. Real Point Property ↩