Property buying guide for Italy
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How to get a mortgages in Italy: terms, rates, application documents — Tranio

In Italy, mortgages are granted for pending constructions, existing property and renovations. Banks impose more stringent requirements on foreign citizens regarding the assessment of the mortgaged property. Therefore, foreign nationals are more likely to be granted a mortgage on high-end, liquid property.

In Italy, like in the other countries of the EU, taking out a mortgage loan is beneficial thanks to the low ECB rate having slid into negative value in 2016.

Maximum LTV ratio 60% (for residents: 80%)
Minimum loan amount €40,000-50,000
Average fixed mortgage rate, % 3.5% per annum
Average floating mortgage rate, % 2.9% + the ECB rate
Loan term From 5 to 20 years
Minimum age of borrower 23-25
Maximum age of borrowerby the end of the loan term  80-85
Maximum percentageof monthly income for mortgage 35%


Prospective lendees submit the following documents to Italian banks:

  • ID, passport copy and proof of residence
  • tax identification number (codice fiscale) issued by the questura (the state police), which has local headquarters in each province of Italy
  • legal entity registration documents and auditors' reports on the company’s financial statements (for business owners)
  • pay slips from permanent employment for the previous year (for the employed)
  • bank statements from foreign banks confirming regular cash inflow
  • preliminary property sale contract
  • estimation of costs (for property renovation mortgages).

Banks may also require a family composition certificate, marriage or divorce certificates, a birth certificate and a driver’s license. Mortgage lendees in Italy are not required to possess residence permits in the country.

All the documents must be translated into Italian and notarised. This can be done via a consulate of Italy.

Loan applications usually take 2-4 weeks for approval.

Additional costs

Non-recurring mortgage costs in Italy total €270-550. There is also a fee of 0.25-2%. Additional property insurance payments range between €150 and €500.

Property appraisaland Due Diligence €270-300 or €500-550for a property valuedat more than €1M
Compulsory property insurance €150−500 per annum
Borrower's lifeinsurance (optional) €3,000-5,000
Mortgage arrangement fee 0.25% with tax benefitsand 2% without them
Early repayment penalty

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    Property buying guide for Italy
    Article 3 of 6
    Tranio’s managers offer advice on buying real estate in Italy
    Elena Chernyshyeva
    Elena Chernyshyeva
    Real Estate Expert
    +44 17 4822 0039
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    • Residence permit support
    • Mortgage rates from 3%
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