How to Finance a Vacation Home in Italy as a Non-Resident

1. Can Foreigners Get a Mortgage in Italy?

Yes! Italy welcomes foreign buyers, and non-residents can apply for a mortgage with Italian banks. While it’s common for international buyers to purchase properties in cash, financing options are available, often covering up to 60-70% of the property’s value. The loan terms typically range from 10 to 20 years.

2. Requirements for Getting a Mortgage in Italy

To secure a mortgage, you'll need to provide several documents, including:

• Valid passport
• Italian tax code (Codice Fiscale) – Easily obtainable through the Italian Revenue Agency
• Proof of income – Pay stubs, tax returns, and/or employment contracts
• Credit history – A solid credit score can help with loan approval
• Bank statements – Typically from the last 6-12 months
• Property details – Including an appraisal report from an Italian surveyor

It’s worth noting that banks will evaluate your financial profile to ensure you can manage the loan alongside any existing debts.

3. Finding the Right Lender

Not all Italian banks offer mortgages to non-residents, so working with a local mortgage broker can save time and help you find the best deal. Some of the top banks providing mortgages for foreigners include Unicredit, Intesa Sanpaolo, and BNL BNP Paribas.

4. Down Payment and Interest Rates

Italian banks typically require a 30-40% down payment, with interest rates varying depending on the lender and market conditions. In general, non-residents may face slightly higher rates than Italian residents, but rates remain competitive compared to other European countries.

5. The Buying Process: Step by Step

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• Get Pre-Approval – Before house-hunting, it’s smart to get pre-approved to know your budget.
• ‍Find Your Dream Home – Work with a local real estate agent to explore options.
• Make an Offer – Once you find the right property, submit an offer to the seller.
• Sign the Preliminary Agreement – This legally binding contract secures the deal and includes a deposit (typically 10-20% of the price).
• Secure Your Mortgage – Finalize your mortgage with the bank.
• Final Deed Signing (Rogito) – Sign the official contract in front of an Italian notary, pay the remaining balance, and get the keys to your new home!

6. Additional Costs to Consider

Besides the property price and mortgage, remember to budget for:

• Notary fees (minimum 5K and up to 3% of the property price)
• Mortgage registration tax (0.25-2% depending on residency status)
• Legal fees (1-2% of the property value)
• Property taxes (IMU and TASI, based on property type and location)

7. Alternatives to Italian Mortgages

If obtaining a mortgage in Italy proves challenging, consider these alternatives:

• Financing through a bank in your home country
• Home equity loan on an existing property
• Private lending options
• Buying with a partner or investor

Final Thoughts

Financing a vacation home in Italy as a non-resident requires planning, but with the right guidance, it’s a straightforward process. Partnering with an experienced mortgage broker can help you navigate the system, find the best rates, and make your dream of owning an Italian home a reality.

Looking for expert advice? Contact us today to explore your mortgage options and take the first step toward your Italian getaway!

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