Housing Loans/ Mortgages for Italians abroad: how to apply

Are you an Italian living abroad, perhaps for work reasons, and would you like to apply for a mortgage/ home loan to buy a new home in Italy? 

It is useful for you to know that mortgages for Italians abroad follow special procedures.   

Italians abroad, how to apply for a home loan If you are applying for a mortgage or loan to buy a house in Italy, having a source of [...] 

This article: “Housing Loans/ Mortgages for Italians abroad” is provided courtesy of Studio Legale Palmigiano

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Housing Loans / Mortgages for Italians Living abroad: How to apply for one

palmigiano - Jan 19, 2022

Do you have a residence abroad, perhaps for work reasons, and want to apply for a mortgage to buy a new home in Italy?  

It is useful for you to know that mortgages for Italians abroad follow special procedures.

Italians abroad, how to obtain a home loan

If one wants to apply for a mortgage or loan to buy a house in Italy, having a source of income in Italy is a fundamental requirement. In fact, credit institutions consider it a guarantee for issuing the loan.

For this reason, not all banks are willing to grant mortgages to Italians residing outside of Italy, and those that do require a different procedure from the one ordinarily provided for first home loans.

First of all, you will have to register with AIRE (Anagrafe Italiana dei Residenti all'Estero). Registration is compulsory for all Italian citizens residing abroad for more than 12 months.

You will then need to find an institution that is in a position to offer financing to Italians abroad, which may be either:

- an Italian bank with branches in the foreign country where you reside

- or a foreign bank with branches in Italy.

If one lives in a country with a currency different from the Euro, the conditions of your loan will be influenced by the conversion rate, which will also affect the loan repayment installments.

Once you have identified a bank, the bank may ask you for special guarantees: for example, you may need to bring in a guarantor to cover you in case you are unable to cover the instalment or in case of late repayments. Alternatively, you may have to submit other securities.

If one lives abroad and buys their first home in Italy with a mortgage, does one qualify for tax relief?

If one does not own any other property and meets all the requirements of the regulations, then yes.

However, you must transfer your residence to the municipality where the house is located within eighteen months of the purchase.

Let us know if we can help you.

The Palmigiano Law Firm specialises in international Private law.

Do you need help? get in touch with us .

The article Home loan for Italians abroad: how to apply for one comes from Studio Legale Palmigiano.