What Italian Banks Expect from Foreign Buyers
For a bank to say “sì”, you need to demonstrate a tangible link with Italy. This connection may include:
- official Italian residence (residenza);
- family members living in Italy;
- employment or business registered in Italy;
- property already owned in the country;
- stable, long-term income from within the EU (non-EU income is accepted more rarely).
Without at least one of these elements, getting approved can be difficult — especially for non-EU citizens.
Key Challenges Foreign Buyers Should Know
1. Higher Down Payment Requirements
Non-residents are usually offered 50–60% loan-to-value, and in rare cases up to 70% for EU citizens with strong credit and income stability.
2. Strict Income Verification
Banks will want to see 2–3 years of consistent, documented income — tax returns, payslips, or business balance sheets if you’re self-employed.
3. Currency Risk
If your income is in a currency other than the euro, banks apply a “conversion discount,” meaning your effective borrowing capacity is reduced.
4. Long Processing Times
Expect the approval process to take 2–3 months, sometimes longer during Italy’s holiday periods (notably August and December).
Property purchases must be planned accordingly.
5. Mandatory Insurance and Extra Costs
Italian mortgages typically require:
- life insurance,
- property insurance,
- notary and translation services (for non-Italian speakers).
These should be included in your overall budget.
The Smart Approach — Pre-Approval First
Before applying for a loan, it’s wise to consult a mortgage broker experienced with foreign clients.
A preliminary approval (delibera reddituale) gives you clarity on:
- how much you can realistically borrow,
- which banks will consider your case,
- and whether the property you’re eyeing fits within your actual financing range.
It also helps avoid disappointment — or worse, a failed deal — if a bank declines your application after signing the preliminary contract.
If you’re planning to buy a home in Italy and need mortgage support, we can connect you with a trusted broker who works with international clients and understands the documentation process.
Contact us for a free introductory call — and find out which Italian banks match your profile.
© ITALTY — Your Italian Realty
We write about buying real estate in Italy with maximum benefit for you, without risks and stress.