Personal finance in Italy

This information is for general orientation only and does not constitute legal, tax or medical advice. Always verify with the official sources cited.

Opening a bank account

For expats, the most convenient accounts are often offered by online banks or neobanks.

Required documents

Main banks

• Traditional: Intesa Sanpaolo, UniCredit, BNL
• Online: Fineco, Webank, CheBanca!
• Neobanks: N26, Revolut, Hype

Taxes to pay

In addition to IRPEF on income, expats and residents must consider:

• IMU: property tax (owners only, not tenants)
• TARI: waste tax
• IMI/IVIE: taxes on property held abroad
• VAT (IVA): 22% on goods and services (reduced to 4% and 10% for some categories)

International transfers

To send or receive money from abroad:

• TransferWise (Wise): low fees, real exchange rates
• Revolut: free up to a certain monthly limit
• SEPA transfer: free within the EU in euros
• SWIFT: for non-EU transfers (expensive and slow)

Saving and investing

Main options for expats:

• Postal savings bonds: safe, guaranteed rate
• Deposit accounts: immediate liquidity, modest interest
• ETFs and funds: diversification, more risk but higher potential
• PAC: a capital accumulation plan to invest gradually

Current account and protection

To choose the right account it is worth comparing costs. Traditional bank: has physical branches, usually with an annual fee (sometimes free under 26 or with salary deposit). Online bank / neobank: quick opening from your smartphone and low fees. Before deciding, look at the fee, the cost of ATM withdrawals (in Italy and abroad), transfers and the presence of branches. If you have a low ISEE you are entitled to the basic account, at reduced cost (info on the Bank of Italy site).

IBAN, SEPA and instant transfers

The IBAN is your account code (in Italy it has 27 characters) and is used to receive or send transfers. A SEPA transfer (in euros, to Italy and the rest of the EU) is usually free or very cheap; the instant transfer, which arrives in a few seconds, often costs €0.50–1.00 depending on the bank.

Taxation of savings and investments (indicative)

• Account/deposit interest: 26% withholding (check exceptions); stamp duty on deposit account balance
• Financial capital gains: often 26% under the administered/declarative regime
• Italian government bonds: reduced 12.5% taxation on interest (check the type)
• Crypto-assets: gains above a threshold (indicatively €2,000 per year since 2023 — always check legislation and circulars)

Right to study and mobility

Regional grants (ER.GO, EDISU, DiSCo…) based on the university ISEE; annual calls. Erasmus+ through the national agency.

Returning-residents regime (impatriati)

It is a tax break for those who return to live in Italy after at least 2 years abroad: for a few years you pay tax on only part of your income. In the past around 50% of income was taxed for 5 years; the rules changed in 2024, so check the updated requirements and percentages before relying on it.

Insurance (overview)

Useful cover as a student or newcomer: civil liability (car and home) and supplementary health.

Motor and home liability

Motor liability (RC auto): mandatory if you have a vehicle; driving without it carries heavy penalties. Compare several quotes and check the minimum legal limits. Home insurance: usually not mandatory but useful — it covers damage you might cause to third parties and certain events (e.g. weather-related).

Supplementary health and students

These are health covers that are added to the National Health Service, for broader reimbursements or faster times: private policies or funds provided by employment contracts (the “CCNL funds”). If you do a properly registered traineeship, you are covered for accidents by INAIL.

Apps and digital services

Public apps for payments and communications with the Public Administration.

IO app and pagoPA

IO app: the public services app — you receive notices and deadlines from the Public Administration, pay with pagoPA and manage bonuses (transport, culture). pagoPA: the system you use to pay university fees, taxes and fines, via a notice or a QR code.

PEC and ANPR

PEC (Certified Email): an email with legal value, like a registered letter; mandatory for businesses and professionals, useful for sending official documents. ANPR (National Population Register): the portal where you download civil-registry certificates (residence, family status…) online, logging in with SPID or CIE.

Bonuses and benefits (overview)

The measures change with the Budget Law: always check INPS / the disbursing bodies.

• Single Allowance (Assegno Unico): support for dependent children — INPS
• Carta Cultura / Merito: tools for under-18s — official site
• Transport bonus: contribution up to ~€60 — bonustrasporti.lavoro.gov.it
• Inclusion allowance: — INPS
• Renovations / ecobonus: — AdE, ENEA

Pets (overview)

Dogs: microchip and canine registry; lead in public; clean up after them. EU passport for travel with dog/cat/ferret. 19% deduction for vet expenses above the deductible (max spend €550/year — verify).

Pre-departure checklist

What to prepare before leaving, depending on your situation (EU or non-EU) and your first year at university.

If you are arriving in Italy (EU)

If you are arriving in Italy (non-EU)

First year at university

Typical monthly budget (indicative)

Having an idea of recurring costs helps you avoid surprises. The amounts below are indicative and vary a lot between large and small cities: use them only as a starting point and adapt them to your situation.

Cards, cash and payments

In Italy electronic payments are now extremely widespread: almost everywhere you can pay by contactless card or smartphone, and by law merchants must accept the POS terminal. A few practical precautions are still useful:

• Debit vs prepaid vs credit card: most neobanks give a free debit or prepaid card, perfect for daily spending; a credit card can be useful for car rentals, hotel deposits and online purchases.
• ATM withdrawals: usually free at your own bank; they may carry fees at other banks or abroad. Beware of ATMs offering conversion into your own currency (DCC): it is almost always better to pay in euros.
• Cash: in Italy there is a limit on the use of cash for payments (the threshold changes by law — check the current one). For large amounts always use traceable means, also to have proof of payment.
• Tips and cover charge: there is no obligation to tip; at a restaurant the “coperto” (cover charge) may appear on the bill.

Payment security and fraud prevention

The most common financial scams aim to make you reveal codes or authorise a payment. A few rules protect you almost always:

• No serious organisation (bank, post office, Agenzia delle Entrate) asks you for passwords, PINs or OTP codes by text, email or phone.
• Do not click links in messages announcing “account blocked”, “parcel awaiting collection” or “tax refund”: always open the official app or website by typing the address yourself.
• Turn on your bank’s notifications for every transaction and strong authentication (SCA) for logins.
• If you yourself authorise a transfer to a fraudster, recovering the money is very difficult: when in doubt, stop and check.

Supplementary pensions (notes)

In addition to the public pension (INPS), there is supplementary pension provision: pension funds and PIPs you can join voluntarily to build a top-up pension, with some tax advantages on contributions (within annual limits). For those working under a contract, it is often possible to allocate the TFR to the sector fund. It is not an urgent choice as a newcomer, but it is useful to know it exists: supervision is by COVIP.

Sources

• Guida ai conti — Banca d’Italia — bancaditalia.it
• Conto di base — bancaditalia.it
• Confronto trasparenza costi — bancaditalia.it
• Pagamenti — Banca d’Italia — bancaditalia.it
• Redditi di capitale — AdE — agenziaentrate.gov.it
• Titoli di Stato — MEF — dt.mef.gov.it
• Rete enti diritto allo studio — ANDISU — mur.gov.it
• Erasmus+ Italia — erasmusplus.it
• RC Auto — IVASS — ivass.it
• INAIL — studenti e tirocinanti — inail.it
• App IO — io.italia.it
• pagoPA — pagopa.it
• PEC — AgID — agid.gov.it
• INI-PEC — inipec.gov.it
• ANPR — anagrafenazionale.interno.it
• INPS — inps.it
• official site — 18app.italia.it
• bonustrasporti.lavoro.gov.it — mit.gov.it
• ENEA — efficienzaenergetica.enea.it
• Ministero della Salute (IT) — salute.gov.it
• Polizia Postale — Commissariato online — commissariatodips.it
• Educazione finanziaria — Banca d’Italia — bancaditalia.it
• Fondi pensione — COVIP — covip.it