A loan to buy property in Italy is increasingly attracting Swiss residents. A house in Tuscany, an apartment in Liguria, a retirement retreat, or a family home – Italy offers a sought-after lifestyle. However, financing remains the trickiest part. An Italian mortgage imposes strict conditions on non-residents, while a Swiss mortgage rarely covers property located abroad. In this context, loans to buy property in Italy most often go through Swiss private credit : It allows you to finance part or even all of the property within a well-defined legal framework. With Lica, you can verify your financing capacity before committing.
Credit to buy in Italy: is it possible from Switzerland?
Yes, buying property in Italy from Switzerland is entirely legal. Italy applies the principle of reciprocity to Swiss nationals: purchases are permitted without the requirement of residency, and without quotas or prior government authorization. Only one step remains indispensable: obtaining the Tax code, the Italian tax code number, essential for signing any notarized deed.
The real challenge is therefore financial. Before signing anything, you need to know your overall budget., your own funds and your ability to repay. That's precisely where a loan to buy in Italy, applied for in Switzerland, makes perfect sense.
Italian mortgage: why credit to buy in Italy is better through Switzerland
Italian banks accept applications from non-residents, but they apply significantly stricter rules than they do for Italian tax residents. Understanding these technical constraints helps measure why a loan to buy in Italy taken out in Switzerland is often a better option.
An LTV capped at 60% and a high down payment
The funding ratioLTV) For a non-resident borrower, the loan-to-value ratio is generally limited to 50–60 % of the appraised value, compared to approximately 80 % for a resident. In practical terms, you must come up with a substantial down payment, often 40 % or more of the property’s price. If not properly anticipated, this limit can derail the transaction after the preliminary sales agreement is signed, resulting in the loss of the deposit already paid.
Documents, domiciliation, and reduced duration
- Proof of income from the country of residence, translated and certified.
- Italian bank account often required for direct debiting monthly payments.
- Reduced maximum term: often 20 years, compared to 25 to 30 years for residents.
- Longer procedure, in a foreign language and legal framework.
The trap of the Italian variable interest rate
Italian banks still frequently offer variable-rate loans indexed to the Euribor. After interest rates rose between 2022 and 2024, some borrowers saw their monthly payments increase significantly. Therefore, before signing anything, it's essential to check the terms for rate capping. This uncertainty contrasts with the clarity of a loan to purchase property in Italy taken out in Switzerland, with a fixed rate and monthly payments set in advance.
Swiss mortgages rarely finance Italian property, either.
A Swiss mortgage is based on real estate collateral located in Switzerland. However, a Swiss bank finds it very difficult to secure collateral on Italian property: different legal rules, location outside of jurisdiction, and complex procedures make the setup almost impossible. The traditional mortgage route is therefore closed on both sides of the border, which makes personal loan Switzerland, the most concrete alternative.
Swiss Personal Loans: Finance Up to the Full Value of the Property
Swiss private credit does not require a mortgage on the Italian property. It relies solely on your personal solvency and is requested in Switzerland, within a controlled legal framework. The monthly payments are fixed and determined in advance, which facilitates project planning.
Its main advantage: with loan amounts ranging from 5,000 to 400,000 CHF, a loan for purchasing property in Italy can finance part of the project, supplement an Italian mortgage, or—for many properties—cover the entire purchase price. This allows you to avoid the 60 % LTV cap, the language barrier, and Italian banking restrictions.
Swiss personal loans are a viable option when used to finance a real estate project abroad in a controlled manner, though they should never replace the essential assessment of a household’s creditworthiness and financial stability.
The grant depends on income, expenses, job stability, and creditworthiness. The Swiss Consumer Credit Act (LCC) protects against excessive debt. Lica analyzes your situation and helps you determine a realistic amount.
Purchase the entire property with a loan of up to 400,000 CHF
Many properties in Italy—especially those outside major cities—fall within a price range that allows for full financing. Whether you’re looking for an apartment, a small family home, or a vacation home, a mortgage to buy property in Italy can cover the full purchase price, up to a limit of 400,000 CHF and your repayment capacity.
To complete its own funds or a personal contribution
If you already have savings, a loan to buy in Italy can supplement your own funds without depleting your reserves. This solution is particularly useful for reaching the high down payment required by an Italian mortgage. However, financial security should always remain available.
Pay notary fees, agency fees, and taxes
The listed price is never the total cost. For a non-resident, closing costs generally amount to 10 to 15 % of the price, which is roughly double what a resident would pay. A personal loan can cover these costs from the outset.
Book quickly or finance renovations
Some properties sell quickly and Purchase offer can require an immediate deposit. Private credit allows for a quick response. After the purchase, It also finances the work, furnishings, or renovations, while preserving liquidity for unforeseen circumstances.
Swiss private credit or Italian mortgage: what's the difference?
Swiss private credit relies on your personal creditworthiness, without collateral on the property. The Italian mortgage, on the other hand, is secured by the property and subject to local banking regulations. The table below summarizes the essential differences for a non-resident buyer considering credit to purchase in Italy.
| Criteria | Swiss private credit | Italian mortgage |
|---|---|---|
| Warranty | None on the property | The Italian good |
| Prize funding | Up to 100 % (max. 400,000 CHF) | 50–60 % of the appraised value |
| Required contribution | No mandatory contribution | 40 % or more |
| Rates | Fixed, with known monthly payments | Often variable (Euribor) |
| Duration | Defined in Switzerland | Often limited to 20 years |
| Steps | In Switzerland, in French, German, or Italian | In Italy, in Italian |
What is
The amount of a loan for a purchase in Italy depends on your ability to repay it. Lica analyzes your regular Swiss income, your expenses, your rent, your existing credits and your family obligations. The loan term directly influences the monthly payment. A budget that is too tight increases the risk. This step avoids unrealistic commitments before signing in Italy.
The total budget to be allocated, including CHF/EUR exchange rate
A reliable budget includes the price of the property and all ancillary costs: Stamp duty (9 % of the assessed value for a non-resident), notary fees (1 to 2.5 %), real estate agent’s commission (2 to 4 %), translations and apostilles, bank fees and currency exchange CHF/EUR. Add work, furnishings, condominium fees, IMU (property tax), insurance, and maintenance. A loan to buy in Italy should therefore be calculated on the total budget, never on the sale price alone.
Prepare a loan to buy in Italy before signing
Arranging financing for a purchase in Italy before signing allows you to proceed with peace of mind. Start by defining your project: secondary residence, retirement, investment, or family property.
- Estimate the total budget in euros, including fees.
- Calculate your available savings.
- Identify the actual funding need.
- Check your creditworthiness in Switzerland.
- Ask for a Private credit simulation from 1TP to 13T.
- Estimate the tax ID number and the exchange rate CHF/EUR.
Useful documents for the application in Switzerland
The file remains concrete: ID or residence permit, Proof of income, fees, employment contract, existing loans, and financing needs. Information about the property is helpful if it already exists.
The checklist before signing in Italy
- Confirmed total budget, including expenses ranging from 10 to 15 %.
- Repayment capacity verified in Switzerland.
- Private credit simulation obtained.
- Preliminary Italian due diligence (urban planning compliance, service charges).
- Tax code being processed.
- Notary or identified local professional.
- Contingency allowance provided.
Who is eligible for a loan to buy in Italy
Credit for purchasing property in Italy suits several profiles: a Swiss couple buying a second home, a resident of Italian origin financing a family property, a future retiree preparing a pied-à-terre, or a buyer who has equities insufficient for the required contribution in Italy. It remains particularly well-suited for fully financing an apartment, associated costs, renovations, or a time-sensitive opportunity.
The limits to know
The amount remains capped at 400,000 CHF and depends on your repayment capacity. For a very valuable item, private credit may only cover part of the price. Credit must remain compatible with the household budget: Italian fees and unforeseen expenses must be anticipated, and approval remains subject to A solvency analysis to avoid over-indebtedness.
How Lica Can Help You Secure a Loan to Buy Property in Italy
Lica helps you prepare your loan application to buy property in Italy within a clear and tailored framework. The process begins with an analysis of your financial situation. Next, Lica estimates your borrowing capacity and offers you a personalized simulation.
You benefit from centralized processes in Switzerland, a French-speaking contact, and assistance with compiling your file. The goal is simple: to validate your financing capacity before signing in Italy, and then proceed until the funds are released.
Buying in Italy from Switzerland is possible, but financing must be planned in advance. Faced with the limitations of Italian mortgages for non-residents, financing to buy in Italy via a Swiss private loan offers a flexible alternative: it can finance expenses and renovations, supplement a down payment, or cover the full cost of a property up to 400,000 CHF. Terms always depend on your ability to repay. With Lica, you can clarify your plans and move forward with confidence.
