Getting a Mortgage in Italy: a Comprehensive Guide

How to Obtain a Mortgage for Property in Italy: Expert Advice

Italy’s allure as a destination for purchasing property extends beyond its scenic landscapes and historic charm. However, navigating the mortgage landscape in Italy can be complex, especially for international buyers. This guide aims to provide a detailed overview of obtaining a mortgage in Italy, drawing on expert insights and integrating essential information for non-residents.

The Mortgage Approval Process

The process of securing a mortgage in Italy involves several steps and considerations. Understanding these can help prospective buyers streamline their efforts and increase their chances of success.

1. Duration for Loan Approval

The loan approval procedure for international investors typically matches the timeline for Italian buyers. However, if the process takes longer, it may be beneficial to seek assistance from another bank or advisor to avoid unnecessary delays.

2. Maximum Loan Amount

For foreign customers, the maximum loan amount, or Loan to Value (LTV), usually does not exceed 60% of the property’s purchase price or appraised value, whichever is lower. In some cases, this can be as low as 50%. Therefore, buyers should be prepared to provide at least 40-50% of the property value as a deposit.

3. Additional Costs

When applying for a mortgage, consider the following additional costs:

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IMU: Property Tax in Italy

Understanding IMU: The only Property Tax in Italy

Italy’s property tax, known as Imposta Municipale Unica (IMU), is a crucial aspect for homeowners, including both residents and non-residents. This tax applies to various types of properties and has specific guidelines regarding who pays, how much is paid, and the payment process.

What is IMU?

IMU is a municipal tax levied on the ownership of real estate properties in Italy, excluding primary residences unless they are classified as luxury homes. It was introduced to consolidate several existing property taxes and simplify the taxation process.

Who Has to Pay?

IMU is mandatory for:

  • Owners of secondary homes (second homes).
  • Owners of primary luxury homes (classified under categories A1, A8, and A9).
  • Owners of commercial properties.
  • Landowners, including those owning agricultural land, with some exemptions for small independent farmers and professional agricultural entrepreneurs.

How Much Do I Have to Pay?

The IMU amount is calculated based on the cadastral income (rendita catastale) of the property – NOT on the commercial price of the property – which is increased by 5% for residential properties and 25% for agricultural land. The resulting amount is then multiplied by specific coefficients depending on the property type:

  • Residential properties (A1-A11): 160
  • Storage units and attics (C2): 80
  • Garages (C6): 65
  • Canopies (C7): 55
  • Offices (A10): 135
  • Industrial buildings and hotels (D1-D4, D6-D10): 60
  • Stores (C1): 55

The standard IMU rate is 0.76%, but municipalities can adjust this rate between 0.46% and 1.06%.

Example Calculation
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2023 Real Estate Market Insight and Forecast in West Liguria, Italy

Insightful Dynamics and Trends in West Liguria’s Real Estate Sector: Overview

From 2015 to 2023, the real estate landscape in West Liguria, Italy, displayed a compelling evolution in transaction dynamics, marked by a significant interplay between Italian and foreign buyers, and an increasing draw towards the area’s prime real estate, according to Matteo Scandolera, Managing Director of LiguraHomes Casamare.

Initially, the West Liguria market presented a balanced appeal to both Italian and international clients. However, there has been a notable shift occurred over time, with a steady increase in international transactions strengthening West Liguria’s growing position on the global stage.

At times out performing the rest of Italy in terms of proportion of international sales, Scandolera notes: “This rise speaks volumes about West Liguria’s desirability, driven by its lifestyle, culture, and investment potential. As the market has evolved, a stabilization in transaction distribution between Italian and foreign buyers emerged, reflecting a matured appeal across diverse demographics.”

Real Estate Market trend in Liguria

Most recently, investment has been seen in new and improved Marina’s along the Italian Riviera coast. Premium marina operator D-Marin took over two new marinas, Marina degli Aregai, one of the largest in the Liguria with 961 berths and Marina di San Lorenzo with 268 berths. Both marinas have addition attractions, including restaurants and hotel.

In January 2024, it was announced that Marina Development Corporation (MDC), which is at the helm of the brand new Marina Cala del Forte in Ventimiglia, is partnering with Chastworth Schools to operate and manage the Borgo del Forte Campus, a large purpose-built international educational and sports campus.

Simultaneously, the redevelopment of San Remo’s old marina area is underway, promising to redefine the city’s waterfront. Porto Vecchio revitalization will include enhancing public spaces, improving marina facilities, and introducing commercial and recreational amenities.

“Such developments are designed to invigorate the area, making it a more attractive destination for residents and visitors alike, creating a positive impact on property values and investment opportunities”, Scandolera comments.

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Video: Why San Remo is the best place to live in Italy?

Welcome to the charming town of San Remo, nestled along the picturesque coastline of Italy. Today, we embark on an exciting journey to explore why Sanremo stands out as the best place to live in Italy.

Join me, Matteo Scandolera from LiguriaHomes Casamare real estate agency, as I share my insights from my recent interview. Brace yourself for stunning views, delectable seafood, and a vibrant lifestyle that will capture your heart.

Why San Remo is the best place to live in Italy?

Why San Remo? Sanremo offers a remarkable blend of natural beauty, cultural richness, and a thriving community that welcomes both locals and foreigners alike. As a resident of Sanremo for several years, I can confidently say that this enchanting town has something for everyone.

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Joining the National Association of Realtors (NAR) for Your Liguria Property Search

We are thrilled to announce that we have recently become a proud member of the esteemed National Association of Realtors (NAR), – the leading professional association for Real Estate agents in the United States – reinforcing our commitment to providing exceptional real estate services.

If you are searching for a property in the breathtaking region of Liguria, Italy, our NAR membership brings a wealth of advantages that can enhance your property search experience.

How our NAR membership specifically benefits buyers looking for properties in Liguria:

  1. Insider Knowledge of Liguria’s Real Estate Market: As NAR members, we have access to a vast network of experienced real estate professionals, including those with expertise in the Ligurian market. We stay up-to-date with market trends, local regulations, and the latest developments in Liguria’s real estate landscape. This insider knowledge allows us to guide you through the intricacies of the region, providing valuable insights and ensuring you make informed decisions throughout your property search.
  2. Extensive Listings and Exclusive Opportunities: Our NAR membership opens doors to a wide range of listings and exclusive opportunities in Liguria. We have access to an extensive database of properties, including coastal villas, charming apartments, and picturesque countryside estates. Whether you seek a coastal retreat in the vibrant towns of San Remo or Bordighera or Alassio or a tranquil countryside escape in the hills of Dolceacqua, Dolcedo or Seborga, our network connections and resources ensure that we can present you with a diverse selection of properties that match your preferences and budget.
  3. Local Connections and Collaborations: Our NAR membership enables us to establish meaningful connections with local professionals, including real estate agents, property developers, and industry experts in Liguria. Through collaborations and partnerships, we can provide you with an integrated approach to your property search. Whether you require legal advice, mortgage assistance, or architectural services, our extensive network allows us to connect you with trusted professionals who can facilitate a smooth and successful transaction.
  4. Expert Guidance and Negotiation: Navigating the real estate market in Liguria can be complex, especially for international buyers. With our NAR membership, you benefit from our expert guidance and negotiation skills. We assist you throughout the entire buying process, from property inspections to price negotiations, ensuring that your interests are protected and that you achieve the best possible outcome. Our expertise in the Ligurian market empowers us to provide you with valuable market insights and guidance, enabling you to make informed decisions and secure your dream property in Liguria.

As a NAR member, we are dedicated to elevating your property search experience in Liguria, Italy. Our insider knowledge, extensive listings, local connections, and expert guidance ensure that you receive unparalleled support and access to exclusive opportunities. Whether you are searching for a coastal hideaway or a countryside retreat, our resources and expertise will be able to assist you in finding your ideal property in Liguria. Contact us today to start your journey towards owning a piece of this enchanting region.


Best questions to ask a Real Estate Agent when buying property in Italy

Buying a property is a huge decision, and it requires a lot of research and preparation. One of the most important steps in the process is finding a reliable real estate agent who can guide you through the buying process. It’s essential to ask the right questions to ensure that you’re working with an experienced and knowledgeable professional. In this blog post, we’ll discuss the best questions to ask a real estate agent when buying a property.

Questions to Ask a Real Estate Agent

  1. How long have you been working in the real estate industry? The experience is a crucial factor when choosing a real estate agent. An experienced agent will have a better understanding of the local market and will be able to provide valuable insights into the buying process. If you’re working with a new agent, ensure that they have a mentor or an experienced team to guide them.
  2. What type of properties do you specialize in? Real estate agents usually specialize in certain types of properties, such as residential, commercial, or luxury properties. It’s essential to work with an agent who specializes in the type of property you’re interested in buying. This will ensure that they have in-depth knowledge of the market and can provide you with the best options.
  3. Can you provide references? A reliable real estate agent will have no problem providing you with references from previous clients. Reach out to these clients and ask about their experience working with the agent. This will give you a better understanding of the agent’s communication skills, reliability, and professionalism.
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