Mortgage in Italy for Foreign Buyers: How Much Deposit Do You Need in 2026?

What Is a Mortgage Deposit in Italy?

In Italy, the “deposit” refers to the portion of the property price you pay with your own funds, while the bank finances the remaining part through a mortgage.

Italian banks calculate mortgages based on Loan-to-Value (LTV), meaning the percentage of the property value they are willing to finance.

The deposit is therefore the difference between the purchase price and the mortgage amount.

Typical Deposit Requirements in 2026

For foreign buyers, deposit requirements in Italy are generally higher than for residents.

In 2026, most Italian banks require:

• 30–40% deposit for non-resident buyers
• 20–30% deposit for foreign residents in Italy
• Higher deposits for investment or second homes

This means that, in practice, banks usually finance 60–70% of the property value for foreign buyers.

Example: How the Deposit Works in Practice

Let’s look at a simple example:

• Property price: €400,000
• Bank mortgage (70%): €280,000
• Required deposit: €120,000

In addition to the deposit, buyers must also budget for purchase costs, which are not covered by the mortgage.

Does the Deposit Change Based on the Property Type?

Yes. The required deposit can vary depending on what you are buying.

Primary Residence (Residents)

• Lower risk for banks
• Higher LTV possible
• Smaller deposit required

Second Homes & Holiday Properties

• Most common for foreign buyers
• Standard 30–40% deposit

Investment Properties

• Rental income considered, but cautiously
• Often higher deposit required

Luxury properties or homes requiring renovation may also influence the bank’s assessment.

Do Italian Banks Finance 100% of the Property?

No.
Italian banks do not offer 100% mortgages to foreign buyers.

Even in the best scenarios, buyers must contribute their own capital. Claims of “zero deposit” financing usually involve additional guarantees, not standard mortgage structures.

At LikeJunco, we always advise clients to plan conservatively and realistically.

Additional Costs to Budget for (Beyond the Deposit)

A common mistake is to assume the deposit covers everything. In reality, buyers should also budget for:

• Purchase taxes (registration or VAT)
• Notary fees
• Mortgage registration costs
• Agency fees (if applicable)

These costs usually amount to 8–12% of the purchase price and must be paid with personal funds.

Can the Deposit Come from Abroad?

Yes.
Foreign buyers can use funds held outside Italy, provided that:

• The source of funds is clearly documented
• Transfers comply with anti-money-laundering rules
• Funds arrive in Italy before completion

Italian banks are strict on transparency, but international funds are fully accepted when properly handled.

How LikeJunco Helps You Optimize Your Deposit

At LikeJunco, our role is not just to submit mortgage applications — but to structure them correctly.

We help you:

• Understand how much deposit banks will realistically require
• Identify banks offering the highest LTV for your profile
• Prepare documentation to strengthen approval chances
• Avoid over-committing capital unnecessarily

In many cases, the right preparation allows buyers to reduce the required deposit compared to initial expectations.

Step-by-Step: Preparing for a Mortgage Deposit in Italy

• Define your budget and purchase goal
• Clarify residency and income status
• Assess realistic mortgage percentages
• Prepare funds and documentation
• Obtain mortgage pre-approval with LikeJunco
• Proceed confidently with the purchase

Being prepared early avoids delays and rejected applications.

Final Thoughts

In 2026, getting a mortgage in Italy as a foreign buyer is absolutely possible — but deposit expectations must be clear from the start.

Understanding how Italian banks assess risk, property type, and buyer profile makes all the difference.

👉 Book a free consultation with a LikeJunco advisor to receive a personalized assessment of your deposit requirements and mortgage options in Italy.

FAQs – Mortgage Deposits in Italy

- What is the minimum deposit for foreigners in Italy?
Typically 30–40% of the property value, depending on the buyer profile and bank.

- Can non-residents get a mortgage in Italy?
Yes. LikeJunco works with Italian banks that actively lend to non-resident foreign buyers.‍

- Does rental income reduce the deposit requirement?
Sometimes, but banks apply conservative calculations. It depends on the structure of the deal.

- Are taxes included in the deposit?
No. Taxes and fees must be paid separately and are not financed by the bank.

- Can LikeJunco help before I find a property?
Yes. Mortgage pre-assessment before choosing a property is strongly recommended.

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