How do foreigners access mortgages to purchase a first or second home in Italy? In recent years, demand for Italian properties from foreign citizens has increased significantly. This is the case among those who have decided to move permanently to the country and those who want to buy a home for their holidays.
How do you apply for financing when buying property in Italy as a foreigner? And, above all, are there any restrictions?
Generally speaking, those who opt for a mortgage for foreigners can access the same financing conditions as those offered to Italian citizens. What changes, however, are the eligibility requirements. For this reason, it's certainly helpful to take advantage of online tools to find the best mortgage for your needs.
How does a mortgage for foreigners work?
Purchasing a property in Italy with foreign citizenship is a straightforward process, provided the correct requirements are met. However, it's important to distinguish between the two main situations, which present different financing options:
- that of foreigners who have permanently immigrated to Italy and, consequently, are resident in the country.
- that of foreigners residing abroad who wish to purchase a property to remain in the country temporarily, for example, during the holidays.
Furthermore, it's worth noting that the different access routes to mortgages for foreigners mostly apply to non-EU citizens, while the same rules apply to EU residents as to Italian citizens.
Mortgages for foreigners residing in Italy
The first case, as already mentioned, concerns those who wish to apply for a mortgage for foreigners and are permanently resident in Italy.
It refers specifically to non-EU citizens who have moved to Italy, who, aside from meeting certain eligibility requirements, can access the same financing conditions as Italian residents.
To understand how a non-EU citizen can apply for financing to purchase a property, and thus how mortgages work in Italy, we recommend consulting a step-by-step mortgage guide. After that, you must meet certain requirements :
- reside in Italy for at least two years, producing the relevant certificates that testify to the duration of the stay in the country
- be in possession of a regular residence permit
- have a stable salary, with relevant income certification via declaration or pay slips
- have been working in Italy for at least 6 months
- be the holder of an Italian bank or postal account
- produce a copy of the employment contract
It's worth noting that requirements can vary, sometimes dramatically, from one bank to another. For example, some banks do not grant mortgages to foreigners who have been resident in Italy for less than five years. Others require permanent employment contracts or at least a couple of years of work experience.
Furthermore, to apply for financing, you must have an Italian tax code, which can be obtained from the Immigration Help Desk at the Prefecture.
Mortgages for non-resident foreigners in Italy
For those who do not reside permanently in Italy but wish to purchase a property for short-term stays—a second home, for example, for vacations—the mortgage requirements are generally less stringent. It is necessary to demonstrate:
- your income status
- have a stable job
- obtain a copy of the employment contract
- open an Italian bank or postal account, often with the same bank with which you sign the mortgage contract.
For a mortgage in Italy with a foreign pay slip, the documentation required may differ depending on the tax return rules in force in the country of origin.
Here too, Italian bank requirements can vary greatly from one lending institution to another. Furthermore, non-resident foreigners wishing to purchase a home in Italy can also turn to lenders in their country of origin. The mortgage does not necessarily have to be issued by an Italian bank to finalise the sale.
Mortgage benefits and interest rates for foreigners
Foreign nationals calculating a mortgage to buy property in Italy, particularly those with permanent residence, can access most of the benefits available to first-time homebuyers.
In general, banks apply the same interest rates offered to Italian borrowers, provided the standard eligibility criteria are met, in line with current trends in mortgage rates and the Italian property market outlook for 2026.
What benefits can you get from your first home mortgage?
Non-EU citizens with a valid residence permit can access the same prima casa (first home) tax benefits as Italian nationals, provided they meet the standard residency and property requirements.
- 19% IRPEF tax deduction on mortgage interest, calculated on a maximum of €4,000 per year.
- Reduced registration tax of 2% when buying from a private seller or a VAT-exempt company, plus fixed cadastral and mortgage taxes, typically €50 each.
- 4% VAT when purchasing from a developer subject to VAT, with fixed registration, cadastral and mortgage taxes of €200 each.
- Access to the Fondo di Garanzia Mutui Prima Casa (First Home Mortgage Guarantee Fund), which provides a state-backed guarantee for eligible buyers, including under-36s who meet income limits and other criteria.
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