There is no law that prevents foreigners from obtaining a real estate financing in Italy, but it's important to know how to do it. The good news is that, generally, it is possible for a Brazilian to get a loan in Italy.
However, you are likely to be asked to present more documents than an Italian or European Union citizen, and the procedure may take a considerable amount of time.
The application process for a real estate credit in Italy It's difficult to navigate, as mortgage rates and availability are often not openly disclosed.
Although it's a complex topic, here's an overview of what you need to know before getting started:
Real estate financing in Italy for non-residents
There are no rules against non-residents buying property or getting a mortgage in Italy — but in practice, you're likely to find that getting one from an Italian bank is far from straightforward.
Os Italian banks they do not advertise loan products to non-residents, even if they offer them, which means rates are not readily available for comparison. You will almost certainly need the services of a knowledgeable real estate professional to access this information, as well as to apply.
There are also more documentation requirements and conferences throughout the process, as nationals from outside the European Union without permanent residence are considered a greater risk by creditors, especially if you are Brazilian, due to the country's frequent political and monetary instability.
It is generally advisable to seek independent advice from Italian financial and property law experts well in advance if you are considering purchasing property as a non-resident.
How much can you borrow?
While this largely depends on your own circumstances, it is important to know that Italian banks are known for being strict creditors and tend to require a larger deposit than many international buyers might be expecting.
This is always true whether you are an Italian or non-EU national, resident in Italy or abroad — although, as mentioned above, non-residents face additional obstacles.
“Due to the economic crisis and the new Anti-Money Laundering Regulation, in recent years Italian banks have made their financing policies more stringent, especially when dealing with non-Italian residents”, explain lawyers from legal consultancy Italy Law Firms (ILS) on your blog.
“In general, expect your down payment to be higher than it would be in the US or UK,” says THE S.
“Italian banks generally accept financing requests for a sum of no less than €70,” he adds, while loan terms of between five and 30 years are common.
ILS notes that “maximum financing is typically 50 to 80 percent of the purchase price, depending on your individual circumstances.”
Italian mortgage lenders generally require proof of at least 2 to 3 years of stable income before they will consider lending to an Italian resident.
For this reason, if you are in Brazil and planning a move to Italy in the near future, many experts advise that you may have more success by applying for a mortgage before you move — as counterintuitive as that may seem.
How long does it take?
As with most things in Italy, patience is a virtue, as you will need to be prepared for a relatively long wait for a mortgage application to be completed.
Even in the simplest scenario — an Italian citizen residing in Italy applying with the assistance of a mortgage broker — the process typically takes up to a month to complete.
A loan application with an Italian bank “is a very complex process that takes on average between 20 and 60 days,” explains the property search portal Idealistic.
Non-EU nationals residing in Italy often report being told that they would need to wait an additional 1 to 2 months for approval due to the need to carry out additional checks, although the timeframe varies by bank and applicant.
This waiting time is a problem for both Italian and international buyers, as “in some cases it makes it impossible for the potential buyer to sign an agreement, and in many cases their dream home will be lost due to the lack of immediate financial resources to complete the process ”.
O Idealistic notes that “some banks allow customers to apply for a mortgage with pre-approval… lasting up to six months, to allow the potential buyer to arrive with check in hand when visiting the property to purchase.”
However, as you might expect, this is less likely to be an option offered to non-EU or non-resident applicants.
What documents are needed?
Os necessary documents will depend on the bank and your circumstances, but generally, as an Italian resident, at a minimum you will need to provide copies of your Identity card Italian; residence permit (residence permit) or equivalent; your passport; and your birth certificate.
If the income comes from Brazil, the candidate for real estate financing in Italy will have to present the Loans and Financing Report (SCR), copy of the declaration of Income Tax from recent years, statements from all bank accounts, among other documents that can prove financial capacity.
Some lenders may require applicants to have permanent residency in Italy, as permanent residents do not face the danger of a permit renewal application being denied. However, this is at the discretion of the individual lender and is not required by law.
And, as mentioned above, you'll need to be able to prove at least 2 to 3 years of steady income, so be prepared to provide your bank statements and financial records.
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