Mortgage Application for Buying a House in Italy

In Italy, if you are a foreign citizen and wish to apply for a mortgage to purchase a house, you should meet some requirements. All documents necessary to start the assessment procedures will have to be translated in Italian.

Concerning the documents, a distinction is due. There are two categories of foreigners:

– Immigrant citizens who are legal residents in Italy and have a regular employment contract must meet the following requirements: 2 years residence in Italy, and an employment contract for at least 6 months.

 If these conditions are met, some documents are required to apply for the mortgage:
– current residence permit or “permesso di soggiorno”
– bank or postal account, in the applicant’s name
– certificate stating the period of time since when you have been residing in Italy
– copy of employment contract
– certification of one’s income status

– For immigrant citizens who do not permanently reside in Italy, documentation, in this case, will include: employment contract, bank or postal account of the bank from which the loan is being applied for and “codice fiscale”.

To summarize, in order to apply for a mortgage, it is needed to supply the bank with the following paperwork:

– a codice fiscale

– tax returns for the last two years;

– proof of personal financial liquidity (bank statements) as well as details of all personal assets;

– all pertinent documentation of the house (act of provenance, floor plans, visure, signed preliminary contract and/or binding offer of purchase).

To take into consideration, the impact of the euro conversion and the exchange rate will be decisive in determining the amount of the mortgage installment. Therefore, it will be important to verify the actual affordability of the loan.

Concerning banks that allow mortgage for non-residents, there generally are two possible options:

– Italian banks with branches in the foreign country of residence or

– Foreign banks with branches in Italy.

Can Foreigners Obtain a Mortgage in Italy?

Yes, also non-Italian residents or non-resident foreigners can. However, due to the economic crisis and the new Anti-Money Laundering Regulation, over the past few years Italian Banks had made their mortgage-policy stricter, especially when dealing with non-Italian residents because of bank director personal responsibility in verifying the source of the money used to buy the property. Furthermore, properties are no longer considered as sufficient warranty.

It’s important to note that policies and paperworks may change, so it’s advisable to consult with an Italian real estate lawyer who can provide up-to-date information and guidance specific to your situation. Lexia offers expert legal assistance in Italian real estate investment and has a team of experienced lawyers who are well-versed in mortgage application and can assist you during the process. Contact them using the form below for any inquiries.

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