How to Get a Mortgage in Italy as A Foreigner

Pizza and pasta, football and Ferraris; Italy has them in abundance. When you combine all this with the history, the scenery, and the people, you’ve got a destination many expats-to-be aim to call home in the future. At the time of writing, it was estimated that there were more than 60,000 British expats in Italy. It’s a mixture of retirees and professionals, families and digital nomads. Each has decided to base themselves on the peninsula. So, if they’ve settled and made the leap into home ownership, how did they do it? Well, in this blog, we look at how to get a mortgage in Italy as a foreigner and pave the way for you to do the same.

Yes. Just like you would find if you applied for a mortgage in the UK, lenders are more concerned about whether you can afford the repayments rather than where you come from. As long as you meet all the lender’s eligibility requirements, you shouldn’t have a problem getting a mortgage in Italy as a foreigner.

That being said, the criteria are often tough, and where you might have been approved in the UK or elsewhere, it may not quite cut it with some Italian lenders. For example, your mortgage must be paid off before you are 75 years old, and you’ll likely only be eligible to borrow up to 60% of the property value.

If you have been renting in Italy or have a move on the horizon, the next part is where you might need to pay close attention. As we mentioned earlier, getting a mortgage shouldn’t be a problem, but there are a few criteria that are different enough from those you might be used to. These differences could be what determines whether you get approval or not.

This is your Italian tax code. Without it, you can’t buy a house, can’t have a bank account, and can’t do anything that involves a financial transaction. The good news is that you can still get one if you are a UK resident. Simply complete a quick form online, have proof of identity and address, and you’ll be set to start the mortgage process.

Mortgages for foreigners in Italy aren’t exactly labelled as such, which means it can often be hard to find a product you might be approved for. Look for a mortgage broker (they can be based in the UK) who knows the Italian mortgage landscape and has contacts with lenders and solicitors in the country. They can help you navigate any complexities and find a suitable mortgage product for you.

Whether you are already living in Italy or not, you’ll want to apply early. The mortgage approval process in Italy is notoriously slow. Securing an agreement in principle, for example, should be done as soon as possible. You could even do this when still living in the UK.To help speed things up, prepare as much as possible in advance. Collate bank statements, utility bills, proof of income, and anything else a lender may want to check over on your application.

As mentioned, it can be a slow process. The lender will conduct all the checks you can expect in the UK: identity, income, bankruptcy checks, affordability, and so on. In addition, a surveyor will be appointed by the lender to check the property, and a solicitor will assess the property title.

Most things you’ll need to get a mortgage in Italy as a foreigner are the same as in your home country. But as a quick checklist, have the following alongside your mortgage application to ensure a smoother route to approval:

Mortgages in Italy are, again, much like what you may find in the UK or elsewhere in Europe. Variable and fixed rates are available, but it’s how much deposit you need and your LTV (Loan-to-Value) that might be alarming.

Mortgages for foreigners in Italy often require a deposit of 40-50% for non-residents and have a loan-to-value of around 50-60%. The minimum that can be borrowed is 100,000 euros. For most people, this isn’t a problem, as property in Italy averaged just over 300,000 euros in 2024. However, while in the UK we often see a lower price as an easier way to obtain a mortgage, this isn’t the case in Italy. In fact, if your desired property is valued at less than 200,000 euros, it is unlikely you’ll get a mortgage in Italy.

In the UK, mortgages are calculated on an annual income multiple basis. This means they take your salary and multiply it by a set number of years to determine how much you could borrow. In Italy, it’s a little different. Lenders in Italy will look at your Debt-to-Income (DTI) ratio.

The DTI is where all your monthly financial commitments, including any existing rent or mortgage payments and your new mortgage payments, are viewed as a percentage of your net income.

Example: You earn £5,000 per month after tax and pay £2,000 per month for mortgage/rent. This gives you a DTI of 40%.
Most lenders in Italy look for around 35%, but this can vary from lender to lender.

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