Mortgage rates in Italy

How mortgages work in Italy

Italian mortgages (mutuo ipotecario) are available in both fixed (tasso fisso) and variable (tasso variabile) rate forms. Variable rates are indexed to Euribor; fixed rates are priced off European interest rate swaps.

The Codice Fiscale is Italy's personal tax code — a 16-character alphanumeric identifier. It is required for all legal transactions including property purchase, bank account opening, and mortgage applications. Apply before anything else through the Italian consulate in your country; it is free and typically issued within 5–10 days.

Conveyancing in Italy is slower than most EU countries. From signing the preliminary agreement (compromesso) to notarial deed (rogito) typically takes 3–6 months. Factor this into your timeline.

Getting a mortgage as an expat in Italy

Most expats can obtain a mortgage in Italy, but the market has fewer international-friendly lenders than Spain or Portugal. Preparation and realistic timelines are the two things that matter most.

LTV limits and eligibility

Italian lenders typically grant loans of up to 70–80% of the assessed property value. As an expat, a deposit of around 30% is a reasonable baseline to plan around. The maximum loan amount at most banks starts above €50,000. Monthly mortgage repayments must not exceed a set proportion of gross monthly income — typically 30–35%.

Who can buy?

EU citizens face no restrictions. Non-EU citizens can buy freely if their home country has a bilateral agreement with Italy, or if Italians can reciprocally buy property in their country. In practice, nationals of most major countries — including the US, UK, Canada, and Australia — can buy without restriction. Obtaining Italian residency before purchasing removes any remaining restrictions entirely.

Which banks lend to non-residents?

Intesa Sanpaolo and UniCredit are the most accessible major banks for non-resident mortgage applicants. BancoBPM and Mediobanca also operate in this space. Specialist comparison tools such as MutuiSupermarket allow buyers to compare offers from multiple Italian lenders simultaneously.

How foreign income is assessed

Foreign income is accepted, but Italian lenders assess it carefully. Evidence of stable employment — including payslips, tax returns, and bank statements for the last two to three years — is required. Self-employed applicants need audited accounts. Life insurance is sometimes required as a condition of lending, depending on the loan size and the borrower's age.

What documents are needed

A standard non-resident application typically requires:

• Valid passport
• Codice Fiscale
• Proof of foreign address
• Last three months' payslips or income evidence
• Last two to three years' tax returns
• Last three months' bank statements
• Details of any existing credit commitments
• Details of the property being purchased

Documents not in Italian must be accompanied by a certified translation.

One honest note

American buyers in particular may find Italian mortgage financing complex due to FATCA (Foreign Account Tax Compliance Act) requirements. Many American buyers opt to finance the purchase from existing US assets or equity rather than taking an Italian mortgage.

More information: Italian real estate: buying a house in Italy

Buying costs beyond the mortgage

Budget 7–12% of the purchase price.

Cost	Amount	Notes
Registration tax	2% (primary) / 9% (other)	Based on cadastral value, not market price
Cadastral tax	Fixed low amounts	Applied alongside registration tax
Notary	1–2%	Mandatory
Estate agent	2–4%	Typically split between buyer and seller
Total estimate	7–12%