Authored by the expert who managed and guided the team behind the Italy Property Pack
Everything you need to know before buying real estate is included in our Italy Property Pack
Yes, foreigners can get a mortgage in Italy in 2026, but the process is more bank-specific than many buyers expect.
EU citizens and residents with Italian income tend to have the easiest path, while non-residents with foreign income face stricter terms and higher deposit requirements.
We constantly update this blog post to reflect the latest mortgage conditions, interest rates, and bank policies in Italy.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Italy.
Can foreigners get a mortgage in Italy right now?
Can a foreigner get a residential mortgage in Italy right now?
Yes, foreigners can get a residential mortgage in Italy in 2026, and there are no legal restrictions preventing foreign nationals from borrowing to buy property.
EU citizens and foreigners who are already residents in Italy with stable, euro-denominated income typically have the easiest access to Italian mortgages because banks can verify their financial situation more easily.
The most common restriction Italian banks impose on foreign applicants is a lower loan-to-value ratio, meaning non-residents usually need to provide a deposit of 40% to 50% instead of the 20% that Italian residents might secure.
By the way, we have a whole document dedicated to mortgages for foreigners in our property pack about Italy.
Can I get a mortgage in Italy without residency?
Yes, non-residents can get a mortgage in Italy, but the number of banks willing to lend and the terms available are more limited than for residents.
Permanent residents and those with Italian work contracts qualify most easily, while temporary residents on work visas can also apply if they can demonstrate stable income and employment continuity.
Banks typically impose stricter conditions on non-resident applicants, including higher down payments (often 40% to 50%), shorter maximum loan terms (usually capped at 20 to 25 years), and more extensive documentation requirements such as translated and legalized foreign income proof.
By the way, we've written a blog article detailing residency and citizenship options that exist when you buy property in Italy.
Do banks require a local work contract in Italy right now?
No, Italian banks do not strictly require a local work contract, but having one makes approval significantly faster and easier because it provides verifiable, euro-denominated income.
If you do not have an Italian work contract, banks typically accept alternative proof of income such as foreign payslips, tax returns, pension statements, or business accounts, though these documents usually need certified translation and legalization.
When a local work contract is present, most Italian banks prefer to see at least 6 to 12 months of continuous employment, and applicants with permanent contracts are viewed more favorably than those on fixed-term agreements.
Can self-employed foreigners qualify for a mortgage in Italy?
Yes, self-employed foreigners can qualify for a mortgage in Italy, but they face stricter scrutiny and need to provide more extensive documentation than employed applicants.
Italian banks typically require self-employed applicants to show at least two to three years of consistent income history through tax returns, business registration documents, and financial statements demonstrating stable or growing earnings.
Is foreign income accepted for mortgages in Italy right now?
Yes, Italian banks do accept foreign income for mortgage applications, but the verification process is more complex and not all banks are willing to underwrite loans based on non-euro earnings.
When your income comes from abroad, Italian banks typically require certified translations of payslips and tax returns, legalized documents (apostille or consular certification), recent bank statements showing regular deposits, and sometimes a letter from your employer confirming ongoing employment.
Can I buy a primary home (and an investment property?) with a mortgage in Italy as a foreigner?
Yes, foreigners can obtain a mortgage in Italy for a primary home, and this is often the easiest scenario because banks view owner-occupied properties as lower risk and Italy offers tax benefits for first-home buyers through the "prima casa" regime.
Foreigners can also get mortgages for investment properties in Italy, but banks tend to be more conservative with loan-to-value ratios and may apply slightly higher interest rates because rental properties are considered more speculative.
If you're buying for investment, you might want to check our blog article about buying and renting out in Italy.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Italy versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
What are the eligibility rules banks actually use in Italy?
What minimum monthly income do I need in Italy as of 2026?
As of early 2026, there is no official minimum income threshold in Italy, but most banks require that your monthly mortgage payment does not exceed about 30% to 35% of your net monthly income, which means you typically need around 3,000 to 3,500 euros (approximately 3,200 to 3,700 USD) net per month to qualify for a 180,000 euro mortgage.
In practice, most approved foreign borrowers in Italy have net monthly incomes ranging from 3,500 to 6,000 euros (about 3,700 to 6,400 USD), especially when seeking loans of 200,000 euros or more.
The minimum income requirement scales directly with the loan amount and property price: if you want to borrow 300,000 euros at typical early 2026 rates, you would need roughly 5,000 to 6,000 euros net monthly income to stay within the 30% affordability threshold.
Yes, Italian banks generally allow combining household incomes from multiple applicants (such as spouses or partners), which can help meet the minimum threshold when one income alone would not be sufficient.
What debt-to-income limit do banks use in Italy right now?
Italian banks typically use a debt-to-income limit of around 30% to 35%, meaning your total monthly debt payments (including the new mortgage) should not exceed about one-third of your net monthly income.
When calculating this ratio, Italian banks include all existing monthly obligations such as car loans, personal loans, credit card minimum payments, other mortgages, and any regular financial commitments that reduce your disposable income.
Do I need a local credit score in Italy right now?
No, you do not need a local Italian credit score to apply for a mortgage, but banks will check the Central Credit Register (maintained by Banca d'Italia) and private credit bureaus like CRIF if you have any Italian financial history.
Italian banks can accept foreign credit reports as supplementary evidence of your creditworthiness, and providing a clean credit report from a reputable bureau in your home country can help reduce uncertainty, even though it is not a direct substitute for Italian credit data.
Do banks require a local guarantor in Italy right now?
No, Italian banks do not typically require a local guarantor for foreign mortgage applicants, preferring instead to manage risk through lower loan-to-value ratios and higher deposit requirements.
Banks are most likely to request a guarantor when the borrower's income is borderline relative to the loan amount, when employment is unstable or on a fixed-term contract, or when the borrower lacks sufficient Italian financial history.
If a guarantor is required, they must typically be an Italian resident with stable income and a clean credit history, and they become fully liable for the loan if the primary borrower defaults.
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How much cash do I need upfront in Italy as of 2026?
What's the minimum down payment in Italy right now?
For foreign buyers in Italy, the minimum down payment is typically 40% to 50% of the property value, which is significantly higher than the 20% that Italian residents with stable local income might achieve.
Across different banks and buyer profiles in Italy, down payment requirements range from 20% for well-qualified residents to 50% for non-residents with foreign income, with most foreign buyers landing somewhere in the 35% to 45% range.
A buyer might secure a lower down payment requirement in Italy if they have Italian residency, a permanent employment contract with an Italian company, substantial liquid assets held in an Italian bank account, or if they qualify for the public first-home guarantee fund (Fondo Prima Casa) through a participating bank.
What loan terms can I realistically get in Italy as of 2026?
What mortgage interest rates are typical in Italy as of 2026?
As of early 2026, typical mortgage interest rates in Italy for foreigners range from about 3.5% to 4.5% for fixed-rate loans, though rates can reach 5% or higher for non-residents with complex income situations or higher loan-to-value ratios.
The factors that most significantly influence your interest rate in Italy include your loan-to-value ratio (lower deposits mean higher rates), whether you choose fixed or variable rates, the stability and verifiability of your income, and the specific bank and product you select.
Foreigners in Italy typically receive interest rates that are 0.25% to 0.75% higher than local residents with comparable profiles, primarily because banks perceive higher risk in foreign income verification and potential enforcement complications.
The interest rate is one of the factors we look at when assessing whether now is a good time to buy a property in Italy.
Are fixed-rate mortgages available in Italy right now?
Yes, fixed-rate mortgages (called "mutuo a tasso fisso") are widely available to foreigners in Italy and are actually the most popular choice among borrowers seeking payment predictability.
Italian banks offer fixed-rate periods that typically cover the entire loan term, which can range from 10 to 25 years for foreign borrowers, though some products also offer initial fixed periods of 5 or 10 years before switching to variable rates.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Italy. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
How do I maximize approval chances in Italy right now?
What financial profile gets "yes" fastest in Italy right now?
The ideal financial profile that gets mortgage approval fastest in Italy is someone with Italian residency, a permanent employment contract, at least two years of stable income, a debt-to-income ratio below 30%, and the ability to put down 40% or more of the property value.
For fast approval in Italy, banks ideally want to see a net monthly income of at least 4,000 euros (about 4,250 USD) and a total debt-to-income ratio of 25% or less, which leaves comfortable headroom within the typical 30% to 35% limit.
Italian banks most favor applicants with permanent employment contracts ("contratto a tempo indeterminato") and at least 12 to 24 months of continuous work history with the same employer, as this demonstrates income stability and reduces perceived risk.
A down payment of 40% to 50% typically signals a strong applicant profile in Italy, especially for foreigners, because it reduces the bank's exposure and shows you have significant financial resources beyond just qualifying for the monthly payment.
We give more detailed tips in our pack covering the property buying process in Italy.
What mistakes make foreigners get rejected in Italy right now?
The most common mistake that leads to mortgage rejection for foreigners in Italy is applying for a loan-to-value ratio that is too high for their profile, such as requesting 80% financing while being a non-resident with foreign income, when banks realistically expect 50% to 60% LTV from such applicants.
The financial red flag that most often disqualifies foreign applicants in Italy is unverifiable or inconsistent income documentation, such as untranslated foreign tax returns, gaps in employment history, or income from sources the bank cannot independently confirm.
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Which banks say yes to foreigners in Italy right now?
Which banks are most foreigner-friendly in Italy as of 2026?
As of early 2026, the Italian banks most commonly cited as foreigner-friendly for mortgages include Intesa Sanpaolo, UniCredit, BNL BNP Paribas, Banca Monte dei Paschi di Siena, Banco BPM, and Crédit Agricole Italia, all of which have established processes for handling foreign applicants.
What makes these banks more accessible to foreign applicants is that they offer English-language support at select branches, have dedicated departments or brokers experienced with international documentation, and are willing to assess foreign income when properly translated and legalized.
Which banks accept non-resident borrowers in Italy right now?
Banks in Italy that accept non-resident borrowers include UniCredit, Intesa Sanpaolo, Banca Monte dei Paschi di Siena, and some branches of BNL and Crédit Agricole, though availability varies by product and branch, and not all products at these banks are open to non-residents.
These banks impose additional requirements on non-resident applicants, including higher minimum deposits (typically 40% to 50%), shorter maximum loan terms (often capped at 20 to 25 years), more extensive documentation including translated and legalized income proof, and sometimes minimum loan amounts of 100,000 to 150,000 euros.
Do international banks lend more easily in Italy right now?
No, international banks do not automatically lend more easily to foreigners in Italy because the Italian subsidiary's lending policies may still impose strict residency or income requirements regardless of the parent bank's global presence.
International banks with a presence in Italy that offer mortgages to foreigners include BNL (part of BNP Paribas) and Crédit Agricole Italia, both of which have established retail mortgage operations and some experience with cross-border clients.
The main advantage of using an international bank for a mortgage in Italy is the potential for better communication in your language, familiarity with foreign documentation formats, and in some cases the ability to leverage an existing relationship if you already bank with the parent group in your home country.
We made this infographic to show you how property prices in Italy compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Italy, we always rely on the strongest methodology we can … and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Banca d'Italia | Italy's central bank, responsible for consumer protection and mortgage market guidance. | We used their mortgage guide for LTV norms, affordability rules, and the one-third income benchmark. We also referenced their interest rate statistics. |
| European Central Bank (ECB) | The official source for eurozone interest rate statistics and mortgage rate methodology. | We used the MIR dataset to anchor typical Italian mortgage rates. We cross-referenced ECB data to validate early 2026 rate ranges. |
| European Banking Authority (EBA) | The EU banking regulator that sets binding guidelines for how banks assess borrowers. | We referenced their loan origination guidelines to explain why banks require specific documentation and stress tests for foreign applicants. |
| Agenzia delle Entrate | Italy's official tax authority for codice fiscale and first-home tax relief rules. | We used their guidance to explain the codice fiscale requirement and how first-home tax benefits affect cash needed at purchase. |
| CONSAP | The official administrator of Italy's public first-home mortgage guarantee fund. | We referenced their portal to explain when public guarantees may help eligible borrowers secure better terms through participating banks. |
| MAECI (Italian Ministry of Foreign Affairs) | The government's official reference on reciprocity rules for foreign property buyers. | We used their guidance to explain the ownership gate that some non-EU nationals must pass before buying property in Italy. |
| Consiglio Nazionale del Notariato | The Italian Notariat's official guidance for foreigners on legal steps and documentation. | We referenced their foreigner-focused guidance to describe the buyer journey and typical documentation expectations. |
| Intesa Sanpaolo | Italy's largest bank by assets, with transparent mortgage process documentation. | We used their published FAQs for concrete process timing (30 to 60 days) and valuation methodology information. |
| UniCredit | A major Italian bank with extensive retail mortgage operations and foreigner experience. | We reviewed their mortgage product pages to verify non-resident eligibility and documentation requirements. |
| BNL BNP Paribas | An international bank subsidiary showing how residency requirements vary by product. | We used their product terms to demonstrate that not all products accept non-residents, even at foreigner-friendly banks. |
| Banco BPM | A major Italian bank with clear public communication on affordability calculations. | We referenced their rata/reddito explanation to triangulate the 30% debt-to-income benchmark used across the industry. |
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