Bridging Finance Italy – Property Bridging Loans from €1m to €500m+
Italy bridging loans
Italy bridging loans provide short-term property finance from €1m to €500m+ for investors, companies and high-net-worth borrowers who need funds in place before long-term finance is available. We are a broker with access to lenders, so we find the right lender for your property, negotiate the terms and manage the process through to drawdown.
We focus on larger transactions, from €1m up to €500m+. We do not arrange small loans. Italian banks can be slow with foreign borrowers, company structures and time-sensitive deals, so specialist lenders and international funds often provide the short-term finance instead. We take your case to the ones that lend at your size and in your location, and compare their offers for you.
What is a bridging loan in Italy?
A bridging loan is a short-term loan secured on property. It gives you funds when you need them, and you repay it from a planned event such as a sale, a refinance or the release of other capital. It is not a mortgage. A mortgage is repaid over many years from income. A bridging loan is normally repaid in one payment at the end of the term, so lenders look closely at the property and at how you will repay.
The lenders that do this in Italy are specialist lenders, debt funds and private lenders, many of them international. They are used to non-resident borrowers, company structures and cross-border deals, and they can usually move faster than a bank credit committee. We know which of them lend in Italy and at what size.
What you can use an Italy bridging loan for
- Buying a villa, apartment, hotel or commercial building before long-term finance is in place
- Completing a purchase before another property or asset has been sold
- Refinancing an existing loan that is ending or has not been renewed
- Releasing capital from a property you already own in Italy
- Buying a building or land where you plan to arrange longer-term or development finance later
- Securing a purchase with a fixed completion date or a deposit at risk
- Funding a business need against a property you own
- Buying a portfolio of properties in one transaction
Property we arrange bridging finance against in Italy
- Luxury and prime residential apartments and villas
- Historic properties, palazzi and country estates
- Hotels, resorts and branded residences
- Offices, retail and mixed-use buildings
- Logistics and industrial units
- Student, co-living and build-to-rent buildings
- Land and buildings with a building permit in place
- Property portfolios held in a company
Where we arrange bridging finance in Italy
We arrange finance for property across Italy. Lender demand is usually strongest in the main cities and the established leisure destinations:
- Milan: residential, offices, hotels and mixed-use buildings in the city and its surrounding area
- Rome: residential, hotel and commercial property, including buildings for conversion
- Turin, Bologna and Genoa: residential and commercial property
- Florence, Venice and Verona: hotels, luxury residential and historic buildings
- Naples and the south: residential and hospitality property
- Lake Como, Lake Garda and Lake Maggiore: luxury villas, apartments and hotels
- Tuscany and Umbria: estates, boutique hotels and prime residential
- Puglia, Sardinia, Sicily and the Amalfi coast: resorts, hotels and second homes
Property in other locations can still be funded. Lenders will look harder at the value and how easily it could be sold, so a clear valuation and a strong exit help.
Who we work with
- Non-resident and international investors buying or refinancing in Italy
- High-net-worth individuals and family offices
- Property companies and funds with Italian assets
- Hotel and hospitality groups
- Owners who want to release capital from Italian property without selling
- Buyers who need to complete before a mortgage or another sale comes through
The borrower can be an individual, a company or a special purpose vehicle (SPV). It can be incorporated anywhere in the world, including as an Italian company (S.r.l.). Lenders will want to see the ownership chart and where your funds come from.
How an Italy bridging loan works
- Send us the case. Tell us the property, its location and value, the amount you need, what the loan is for and how you will repay it.
- We approach lenders. We take it to the specialist lenders, funds and private lenders that fit.
- Compare terms. We compare the offers and negotiate the best one for you.
- Valuation and legal work. The lender values the property, and your Italian lawyer and notary and the lender’s lawyers complete the paperwork.
- Drawdown. The funds are released once the conditions are met.
- Repayment. The loan is repaid from your planned exit at the end of the term.
What lenders look at
- The property: its location, type, condition, title and value
- How much you want to borrow against that value
- Your exit: a clear, realistic plan to repay
- The borrower: who owns the company and who stands behind it
- Where your funds and equity come from
- What the loan is for
- Any other debt on the property
Bridging lenders lend mainly on the property and the exit rather than on your income, which is why they can often move when a bank cannot.
How the loan is repaid
Lenders want to know how the loan will be repaid before they agree it. The usual routes are:
- Sale of the property the loan is secured on
- Sale of another property or asset
- Refinance onto a longer-term loan with an Italian or international lender
- A planned liquidity event, such as the sale of a business or an investment
- Repayment from other capital you already hold
The stronger and better evidenced your exit, the more lenders will be willing to look at your case and the better the terms are likely to be.
What it costs
A bridging loan normally has interest, an arrangement fee, an exit fee, and the lender’s valuation and legal costs. Interest is usually added to the loan rather than paid monthly. Terms depend on the property, the borrower, the exit and the lender. We agree our own fee with you in writing before we approach anyone, and we give you an indication of likely terms once we have seen the case.
Buying and borrowing in Italy: what to expect
- A property sale in Italy is completed in front of a notary, and the notary and your own lawyer handle the legal checks
- Buyers normally need an Italian tax identification number (codice fiscale)
- Documents in Italian may need an English translation for the lender
- Lenders usually take a first mortgage over the property, and sometimes security over the shares of the borrowing company
- Loans are normally in euros
- You should take advice from an Italian lawyer and tax adviser before you commit
We can point you to the type of adviser you need, but we do not give legal or tax advice.
Documents to have ready
- Identity and proof of address for the borrower, directors and owners
- Company details and an ownership chart, if a company is borrowing
- Title documents, or the purchase contract
- A recent valuation, if you have one
- Details of any existing loan on the property
- Evidence of your funds and where they come from
- Your exit plan, with supporting evidence such as a sale agreement or refinance indication
- A short summary of your property and finance experience
- Recent accounts or a statement of net worth
Having these ready shortens the time it takes to get firm terms.
How to improve your chances
- Explain the purpose of the loan and your exit clearly at the start
- Give a realistic value and back it up with evidence
- Be open about any problems, because lenders find them in due diligence anyway
- Show where your funds come from, especially if you are a non-resident
- Engage your Italian lawyer and notary early
- Give us the full picture so we approach the right lenders first time
Bridging finance or development finance?
A bridging loan is for buying, refinancing or releasing capital against a property that already exists, over a short period. Development finance pays for the construction or redevelopment of a scheme and is released in stages as the work progresses.
If you are buying a building or site now and plan to develop it later, a bridging loan can secure the purchase, and development finance can follow once the plans and permits are in place. We arrange both, and we can tell you which fits your project.
Why use a broker
Lenders differ widely on how much they will lend, what they charge and what they ask for. We deal with them every day, present your case the way their credit teams read it, and save you approaching them one by one. You deal with one team from first enquiry to drawdown.
Talk to us about your Italian property
Send us the basics through the enquiry form and we will come back to you with an indication of lender appetite and likely terms.
Italy bridging loans FAQ
What is the minimum loan for a bridging loan in Italy? We arrange facilities from €1m, and up to €500m+ for the largest cases.
Can a foreign or non-resident borrower get a bridging loan in Italy? Yes. Lenders lend to individuals and companies from any country. They check your identity and where your funds come from.
How long does it take to arrange a bridging loan in Italy? It depends on how ready the case is. Valuation and legal work usually take the longest, so having your documents ready saves time.
How long is the term of an Italy bridging loan? Bridging loans are short-term. The lender sets the term around your exit, and we tell you what is available once we have the details.
What can I borrow against? Normally the property in Italy that you are buying or already own. Depending on the lender, other property can sometimes be included in the security. Ask us about your case.
Can I use the loan to buy property in Italy? Yes. Many borrowers use a bridging loan to complete a purchase before long-term finance or another sale is in place.
Can I release capital from a property I already own? Yes, where the property is suitable and the lender is happy with your plan for the funds and your exit.
Do I need an exit plan? Yes. Every lender wants to see a clear, realistic way to repay the loan.
Do I need an Italian company? No. The borrower can be an individual or a company from any country. Some borrowers set up an Italian company (S.r.l.) for the purchase.
Can you finance a property that needs work? Yes, if you have a clear plan and a clear exit. If the works are major, development finance may fit better, and we can advise on that.
What security does the lender take? Normally a first mortgage over the property, and sometimes security over the shares of the borrowing company. Your Italian lawyer and notary handle the registration.
Can the loan be in euros? Loans are normally in euros. Ask us if you need another currency, as it depends on the lender.
Are you a lender? No. We are a broker. We place your case with specialist lenders, funds and private lenders and negotiate the terms for you.
Do you charge a fee? We agree our fee with you in writing before we approach any lender.