Moving to Italy for Permanent Residency: Up-to-Date Information for 2025

A mortgage in Italy for foreigners serves as an entry point into one of the most stable markets in Europe. Thanks to the liberal approach of banks, lack of citizenship does not restrict access to financial products. The housing segment offers a variety, from rural villas to apartments in metropolises. The average interest rate ranges from 3.1% to 4.2%, the term reaches 30 years, and the down payment is 30-40% of the property value.

Mortgage conditions in Italy for foreigners: legal framework and real figures

A mortgage in Italy for foreigners requires compliance with three key conditions, among them:

1. Legal status in the EU territory (visa, residence permit, permanent residency).

2. Financial transparency — income must be confirmed outside Italy.

3. Readiness for a down payment (usually from 35%).

The maximum loan amount is 60-70% of the property value. The average loan term is 20 years. The income part is strictly evaluated: the monthly payment should not exceed 30-35% of stable income. This rule ensures protection for both the investor and the bank.

Banks in Italy: who actually approves mortgages for foreigners

Among the largest players are:

• Intesa Sanpaolo — offers flexible products for rent and personal use.

• UniCredit — actively works with citizens of CIS countries.

• Banca Monte dei Paschi — tailors offers for “investors without EU citizenship.”

Each institution uses its own risk calculation formula. The loan is processed faster with a local account, registration address, and tax number (codice fiscale).

Documents for a mortgage

The basic list includes:

• passport;

• income statement for 24 months;

• tax return;

• bank statements for 6-12 months;

• purchase-sale contract or preliminary agreement;

• taxpayer number in Italy (codice fiscale).

Sometimes, proof of registration at the place of residence is added to the list, especially if the borrower is renting housing in the EU. Translation of all documents is mandatory, with an apostille if submitted from abroad.

Format, types, and purposes of mortgages

Mortgages in Italy for foreigners are classified by purpose, type, and payment method.

By purpose:

• purchase for personal use;

• purchase with subsequent rental;

• investment with a view to resale;

• use under residence permit/permanent residency.

By type:

• fixed rate (more reliability, higher initial load);

• floating rate (lower rate, higher risks);

• mixed product (fixed for the first 5 years with subsequent adjustment).

By payment method:

• annuity (uniform payments);

• linear scheme (reduction of loan amount each year);

• bullet mortgage (interest payment monthly, principal at the end of the term).

Each format suits a specific purpose. For rental, bullet or annuity is more beneficial, for resale — linear format, accelerating debt reduction.

Calculations and indicators: how banks assess reliability

A mortgage in Italy for foreigners is calculated based on the standard banking formula: the ratio of monthly payment to regular income. The threshold is set at 30-35%. The average annual income for mortgage approval of €100,000 should be at least €30,000 after taxes. The property is evaluated based on market value by an independent appraiser accredited by the bank.

The down payment reduces the credit leverage. For properties in Northern Italy, a 40% down payment increases the approval chance by almost 60%. For southern provinces, banks require higher — up to 50%, especially in the absence of tax residency. Organization commission is 1-2% of the amount, registration is 0.5%, notary expenses range from €2,000.

Mortgage interest rates: range and dynamics

Mortgage interest rates for foreigners in Italy range from 3.1% to 4.9% depending on the term, credit profile, and borrower’s status. Banks offer two main options:

• fixed rate — from 3.8% (up to 25 years);

• variable rate — from 3.1% (tied to EURIBOR).

Sometimes, a combined model with a floating parameter, fixed after three years, is available.

Buying property in Italy on credit: mechanics and risks

The process involves four stages:

1. Signing a preliminary purchase agreement (compromesso).

2. Obtaining mortgage approval.

3. Property appraisal and legal check.

4. Signing at the notary and transferring funds.

The risk of default is mitigated by the collateral insurance system. In case of non-payment, the bank has the right to the property without judicial proceedings. Therefore, a mortgage in Italy for foreigners requires strict adherence to deadlines and payments. A delay of over 90 days activates the recovery procedure.

Investing in Italian real estate: arguments and benefits

A mortgage in Italy for foreigners serves not only as a way to buy housing but also as an investment tool. This is especially relevant in second-tier cities — Trieste, Verona, Bologna. There, price growth exceeds the average inflation rate by 2-3% annually. The average rental yield is 4-5% per year with stable occupancy.

Foreign investors receive an additional bonus — the opportunity to obtain a residence permit with investments from €250,000. The status simplifies the process of obtaining subsequent loans and reduces the rate by 0.5-0.7% upon renewal. Permanent residency requires registration of a permanent address and no outstanding debts.

Mortgage for non-residents in Italy: features and limitations

A mortgage in Italy for foreigners without resident status includes increased risk for the bank. Therefore:

• the rate increases by 0.8-1.2%;

• the term decreases to 15-20 years;

• the down payment rises to 45-50%;

• the monthly payment is fixed in euros.

Additionally, banks require either a resident’s guarantee or opening a deposit account for 6-12 months in advance.

Mortgage benefits and additional mechanisms

Some regions in Italy offer mortgage benefits to foreign investors, including:

• waiver of registration tax in rural areas;

• subsidy on part of the interest rate (up to 1%) for purchasing historical properties;

• compensation for notarial expenses for the first purchase.

  

A mortgage in Italy for foreigners becomes particularly advantageous when using these mechanisms. Activation of the program requires application through the local cadastral service and approval by the regional administration.

Conclusion

A mortgage in Italy for foreigners forms a stable platform for long-term property ownership in the EU. Banks do not require citizenship but assess payment ability, income, and purchase goals. Each stage — from application to approval — requires discipline and financial transparency. At the same time, the market offers flexibility: a variety of schemes, rates, and properties ensure an individual approach.

Immigration to the sunny peninsula attracts those seeking a high standard of living, a mild climate, quality education, and accessible healthcare. Where to move to Italy for permanent residence to combine convenient infrastructure, comfortable housing, and a developed labor market? The best Italian cities for living differ in real estate prices, salary levels, climate, and availability of social services. Some are ideal for work and business, while others attract retirees and those who appreciate a relaxed pace without hustle and bustle.

Florence: Cultural Center and Excellent Location for Entrepreneurs

Florence is among the best Italian cities for living thanks to its rich cultural heritage, comfortable climate, and business opportunities. The city remains one of the most prestigious in the country, offering developed infrastructure, high-quality schools, and leading universities.

Advantages:

1. Average housing price – 4000-6000 euros per square meter, rent starting from 900 euros per month.
2. Mild climate with warm winters and long, warm summers.
3. A vast number of cultural events, museums, and theaters.
4. Developed tourism sector and real estate market, creating business opportunities.

Florence is ideal for entrepreneurs, students, and creative individuals who want to live in a city with unique architecture and an artistic atmosphere.

Milan: Business Center of Italy and Best Place for Work

Milan is the financial and economic capital, a leader among the best Italian cities for living. The city excels in banking, fashion, design, IT, and startup culture, with significantly higher average salaries compared to other regions.

Features:

1. High salaries: average income starting from 2500 euros per month.
2. A large number of international companies and startups.
3. Modern infrastructure, developed transport, and convenient logistics.
4. Housing costs starting from 5000 euros per square meter, with rent starting from 1200 euros.

Milan is suitable for professionals in technology, fashion, design, finance, and marketing, as well as those seeking a dynamic life in the center of business activity.

Turin: Cozy Corner with Affordable Real Estate

Turin offers a high standard of living with relatively low rental costs. The city combines beautiful architecture, modern office districts, and natural areas.

Advantages of living in Turin:

1. One of the cheapest major cities in Italy – price per square meter ranges from 2500 to 4000 euros.
2. Proximity to the Alps, making it ideal for mountain lovers and skiing enthusiasts.
3. Quiet atmosphere and fewer tourists compared to Rome or Milan.

The location is ideal for families and retirees, offering a peaceful and safe life with high-quality healthcare and education.

Bologna: The Best Italian City for Living

Bologna is known for Europe’s oldest university – the University of Bologna, attracting students from around the world. The city is home to research centers, laboratories, startup incubators, and IT hubs, making it a center of technological development. Public transport covers the entire metropolis and outskirts, and its central location allows quick access to Milan, Florence, Venice, and Rome. Bologna has a balanced economy represented by the food industry, high technologies, and education, making it an excellent choice for moving to Italy for permanent residence.

Advantages:

1. Vast career opportunities: strong positions in science, education, and IT sectors.
2. Comfortable price levels: housing costs starting from 3500 euros per square meter, rent from 800 euros per month.
3. Excellent transport accessibility connecting the city with Italy’s main business centers.
4. High level of safety, especially in areas focused on students and expatriates.

Parma: Ideal Place for Family Life

Parma is one of the coziest and safest Italian cities, making it the best place for family life. It boasts clean streets, green parks, and low crime rates. The mild climate allows for year-round strolls, and the developed healthcare and school systems make it perfect for raising children. The average cost per square meter in Parma is from 2500 euros, making it one of the most affordable major cities in the country.

Advantages:

1. A peaceful lifestyle focused on family comfort.
2. Clean air and green areas, creating perfect conditions for walks and relaxation.
3. High level of healthcare services and European-quality education.
4. Real estate significantly cheaper than in Milan or Florence.

Trento: Italian City with the Best Quality of Life

Trento is considered one of the cleanest and well-organized cities in Italy, making it an excellent place for permanent residence. Surrounded by the picturesque Alps, the metropolis is ideal for nature lovers and an active lifestyle. It features many parks, eco-friendly residential areas, and clean mountain air, attracting families and retirees.

Features:

1. Developed urban environment with eco-friendly districts.
2. Safety and low crime rates make it perfect for families.
3. Best conditions for winter sports and hiking.
4. Average housing cost – 3500 euros per square meter, rent – 800-1000 euros.

The location is suitable for those who want to enjoy nature, an eco-friendly urban environment, and a high quality of life. Immigration to this part of Italy guarantees comfort and health.

Conclusion

The choice of location for permanent residence depends on personal priorities. Milan is suitable for business and career, Bologna for students and young professionals, and Parma, Turin, or Trento for families and retirees. The best Italian cities for living offer different opportunities, but each has features that allow finding the perfect place for everyone.