MortgageItaly: mortgage for foreigners: a simple transaction, but not always easy

31 March 20230

Italy is a fascinating country that has always attracted the interest of people from all over the world.

It is not only the historic art cities that attract foreign tourists, but also the breathtaking landscapes ranging from the mountains to the coasts all over the peninsula. Visitors to Italy often fall in love with the country and its culture, and many consider buying property there.

For some it is a permanent retirement home, for others a second vacation home or an investment property in strategic locations.

In Italy, mortgage for foreigners is a simple transaction but not always easy.

Bureaucratic complexities and difficulties in obtaining a mortgage can discourage potential buyers and cause them to abandon the dream of buying property in the country.

Although in Italy there are still few Italian banks willing to grant in mortgages for foreigners.

It is possible to get the support of an experienced financial advisor such as FMoretto Consulting, who can assist the buyer all the way to obtaining the mortgage.

FMoretto Consulting has a strong business relationship with numerous Italian and foreign banks. The company is able to offer support to foreign clients both from Europe and other parts of the world.

Mortgage for foreigners: the process

The process of obtaining a mortgage for foreigners (in Italy) involves several costs, which are:

  • application fees from the bank;
  • appraisal fees;
  • notary fees;
  • translation costs (if necessary);
  • insurance costs;

cost of the consultant following the mortgage file.

The chances of obtaining a mortgage to purchase a property in Italy are also conditioned by several parameters, such as:

  1. amount of the loan requested
  2. nationality of the applicant
  3. applicant’s financial situation

1. The Amount of the loan requested is a key factor

Italian banks usually grant a loan that does not exceed 70% of the purchase price of the property, as determined by the Valuation Report prepared by the appraiser appointed by the bank. In addition, it is important to consider the appraisal fees required to value the property.

2. Nationality of the applicant

The nationality of the applicant may affect the chances of obtaining a mortgage. Some banks may apply restrictions based on the nationality of the applicant  making it more difficult to obtain the loan.

3. Applicant’s financial situation

The applicant’s financial situation is another key factor because Italian banks require to know the applicant’s ability to repay the loan financially.

A copy of the applicant’s latest Income Tax Return is usually requested, which must be translated into Italian and legalized through Postille or by the Italian Consulate in the applicant’s country of residence.

Italy: mortgage for foreigners made easy by FMoretto Consulting

After making an initial assessment of the client’s documentation, FMoretto Consulting will be able to recommend the most suitable bank to apply for the desired mortgage.

The time it takes to get a response to the mortgage application may vary depending on the specific case, but it usually takes a few weeks.

Once the application has been approved, if the mortgage has been requested for the purchase of a specific property, the mortgage contract is signed in front of the Notary Public, when the final deed of transfer of ownership of the property is signed.

Typically, a Bank official attends the meeting and hands the seller the check corresponding to the amount granted as a mortgage.

FMoretto Consulting is able to assist its clients in choosing the most suitable bank to apply for a mortgage, while the timing and manner of approval of the mortgage itself may vary depending on the specific case. Usually the contract is signed in front of the Notary Public and a Bank official attends the meeting.

In conclusion,

for Italy mortgage transaction for foreigners (as uk residents) I will keep in mind that:

  • First, Italian banks offer mortgages with a duration that can vary from 5 to 30 years, thus giving you the opportunity to choose the solution that best suits your needs.
  • Second, in order to qualify for a mortgage with an Italian bank, an application for an amount of no less than 50,000 euros is usually required, which is a significant amount and requires some ability to pay.
  • Third, it is important to know that the mortgage on the loan cannot exceed 70/80% of the purchase price of the property which means that the applicant must have some of the money needed for the purchase, in addition to that required by the loan.
  • Fourth, Italian banks usually require the signature of another (younger) applicant in case the applicant is over 70 years old, who will be jointly and severally responsible for the payment of the mortgage instalments in case the main applicant fails to pay.

Finally, it is surely possible to obtain mortgages for the purchase of residential or business properties in Italy. Need a free consultation?

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