Can anyone purchase real estate in Italy? The answer is: it depends on the basis of your citizenship status, and the reciprocity treaties that Italy has with your country.
European citizens and non-European citizens residing in Italy can freely purchase Italian property. Non-EU and non-Italian residents are subject to the principle of reciprocity (Meaning that, if an Italian is allowed to buy a property in the prospective buyer’s country, the buyer is allowed to purchase real estate in Italy). For example, Italy and the United States have a reciprocity treaty, stating that Americans can buy property in Italy and Italians can buy property in America.
Keep in mind that:
For a resident with Italian income, accessing a mortgage can be relatively straightforward, with a wide range of banks to choose from. However, for a non-resident, the options are significantly reduced. While a resident might have about 100 banks to approach, a non-resident has access to only around five financial institutions that offer this service.
Loan amount and debt-to-income Ratio
Banks tend to be more conservative when granting mortgages to non-residents. Generally, the Loan to Value (LTV), or the percentage of the property’s value that can be financed with a mortgage, is 50-60%. Additionally, the Debt to Income (DTI) ratio must remain below 35%, including the payments of any existing loans.
Type of income
One of the main discriminating factors for obtaining a mortgage is the type of income the client has. For employees, the bank can easily calculate the net income, and determine the amount that can be borrowed. Conversely, for those with income from business or corporate shares, calculating net income after taxes and expenses can be complex and time-consuming. Banks often prefer to avoid this complexity, thus turning away these clients.
Legal responsibility
Accurately calculating the amount that can be borrowed is a matter of legal responsibility for banks. In Italy, the CONSOB, the banking supervisory authority, imposes strict rules to protect clients. Banks must adhere to precise contractual limits and, in cases of uncertain or difficult to assess situations (such as foreign income from businesses), they prefer to decline, rather than risk legal issues.
Competitive interest rates
A positive aspect of the Italian banking system is the competitive interest rates for property purchases. Italian banks primarily earn through cross-selling various services (such as insurance, current accounts, pension funds, financial investments, and credit cards) rather than through mortgage interest rates. However, this makes non-resident clients less “valuable” when compared to residents.
Required documents
To apply for a mortgage in Italy, several documents must be presented, divided into two main categories: personal documents and income documents.
Personal documents
Income documents
The time to receive an official response from the bank is about 40 working days, but it can take longer if the documentation is incomplete and additional information is required.
First home vs. second home
In Italy, the distinction between “first home” (prima casa) and “second home” (seconda casa) involves different tax implications. Property taxes are divided into two main categories: the registration tax at the time of purchase, and the IMU, an annual property tax.
First home benefits
For properties purchased as a “first home,” the registration tax is significantly reduced (2% of the cadastral value compared to 9%) and the IMU is eliminated. However, to benefit from these reductions, one must not own other properties in Italy, and must transfer their residence to the purchased property within 18 months. Luxury properties do not enjoy these benefits
Italy’s real estate market is as diverse as its landscapes—from the rolling hills of Tuscany to the vibrant coasts of Puglia, each region offers unique opportunities for those looking to buy a home, invest, or both. Whether you envision a countryside retreat, a historic city apartment, or a lucrative rental property, our team specializes in matching your aspirations with the right property.
No two buyers are alike. Some seek a permanent residence, others a holiday home with rental potential, and many are drawn to Italy purely for investment—be it an agriturismo, an Airbnb venture, or a luxury villa. We begin by listening. By understanding your goals, lifestyle, and priorities, we curate a selection of properties that align with your vision, budget, and long-term plans.
Italy’s charm lies in its regional variety: a vineyard in Piedmont, a seaside villa in Sardinia, or a farmhouse in Umbria can offer vastly different lifestyles—and returns. Our expertise spans these nuances. We don’t just list properties; we analyze markets, assess growth potential, and identify hidden gems, ensuring you make an informed decision.
From the initial search to closing the deal, our team guides you at every step:
Personalized searches: if our portfolio doesn’t feature your ideal property, we’ll leverage our network and market knowledge to find it.
Due diligence: each property is vetted for legal compliance, mortgages, and cadastral records to avoid surprises.
Viewings & negotiations: we arrange visits and provide multilingual support during negotiations, especially crucial for international buyers.
Our extensive network—including legal specialists, architects, and tax advisors—ensures seamless transactions, whether you’re down the street or overseas.
Italy isn’t just a place to buy property; it’s a lifestyle and an investment in beauty. Tell us your vision, and we’ll handle the rest.
