Only three players from Italy have played for the club in the history of Real Madrid, they are:
Christian Panucci is a right-back who was born on 12 April 1973 in Savona, Italy. Joined by Italy's AC Milan for €4.13 million in January 1997, he spent two and a half seasons at Real Madrid, making 73 La Liga appearances and scoring three goals. During his time at Real Madrid, he won la Liga (1996/97), the UEFA Champions League (1997/98), the Spanish Super Cup (1997) and the Toyota Cup (1998). In July 1999, he left the team and returned to Italy to join Inter Milan.
Antonio Cassano is a striker born on 12 July 1982 in Bari, Italy. Joined by Roma in January 2006 for €24 million, he spent a season and a half with Real Madrid, making 19 La Liga appearances and scoring two goals. He won the La Liga title once (2006/07) during his time at Real Madrid, was loaned back to Serie A Sampdoria during his time at Real Madrid, and left in July 2008 to join Sampdoria for 5 million euros.
Fabio Cannavaro is a centre-back born on 13 September 1973 in Napoli, Italy. Joined by Italy's Juventus for €7 million in July 2006, he played for Real Madrid for three seasons, making 94 La Liga appearances. During his time at Real Madrid, he won two La Liga titles (2006/07, 2007/08) and one Spanish Super Cup (2009). In July 2009, Cannavaro left the team to return to Juventus.