Opening a Bank Account & Managing Your Taxes in Italy

Jump right in:

• Can you open a bank account in Italy as a foreigner?
• How can you open a bank account as a foreigner?
• What are some of the best banks in Italy?
• What is the tax system like in Italy?
• Do you need to file a tax return? How?
• Taxes for self-employed in Italy

Can you open a bank account in Italy as a foreigner?

You can open a bank account in Italy regardless of your citizenship or visa status. The requirements and process may vary, though. There are many Italian banks to choose from, as well as international online banking options. While opening a basic account is usually free of charge, you may have to pay certain fees, depending on your bank and the type of card you request. Read on to learn more about opening a bank account in Italy as an expat.

How can you open a bank account as a foreigner?

To start, it’s good to know that there are different types of bank accounts you can open in Italy. If you’re not a resident yet, you can open a non-resident account (conto corrente per non residenti), which is a basic option with limited features such as managing day-to-day transactions and depositing money.

Once you become a resident, you’ll be able to open a standard bank account (conto corrente), which offers more flexibility. To open a bank account in Italy, you’ll also need a tax identification number (Codice Fiscale), which is issued by the Italian tax office and used for most official processes. It’s usually easier to open a bank account while you’re in the country because the bank may ask you to present certain documents or you may be expected to show proof of address.

Who qualifies as a non-tax resident in Italy?

You’re considered a non-tax resident in Italy if you meet any of the following conditions:

• you haven’t been registered in the Italian residents’ registry for at least 183 days in a year
• you haven’t maintained a legal domicile in Italy for six months
• you haven’t had your usual place of residence in Italy for more than half the year

What are the requirements to open a bank account in Italy?

Requirements may differ from bank to bank, and sometimes even from branch to branch. The safest option is to contact your local branch beforehand to know the specific requirements that apply to your immigration status and your banking needs.

Required documents for non-residents:

• valid ID or passport
• proof that you’re over 18 years old
• an Italian address for correspondence (this does not need to be a residence)
• completed account application form (available at the bank)

If opening by mail:

• a reference to the bank
• a signature certified by a notary or lawyer
• copies of your passport or ID
• proof of payment for any account setup fees

If you want to open a bank account before arriving in Italy, some banks can handle the process through international branches or partner institutions. These banks may be able to carry out required anti-money laundering (AML) checks abroad and forward your verified details to their office in Italy.

Alternatively, some banks offer a fully remote process. This often involves making an initial deposit from an account already in your name and completing a video interview to confirm your identity.

Required documents for residents:

• proof of ID such as a passport
• proof of an Italian address and valid residence status
• Italian tax number
• proof of employment or student status

Keep in mind that each bank may have its own procedures, and requirements can vary. Some may ask for additional documents or require a minimum deposit to open the account. It’s always a good idea to check directly with the bank you’re considering to get the most accurate and up-to-date information.

What are some of the best banks in Italy?

The top banks in Italy to open an account as an expat are:

• BNL, Banco Nazionale del Lavoro
• ING
• Intesa Sanpaolo
• Poste Italiane
• Unicredit
• Fineco Bank
• Revolut (online only)
• N26 (online only)

International banks:

• Deutsche Bank
• ING
• Crédit Agricole
• HSBC
• Raiffeisen Bank

Are there banking fees?

There are usually no fees to open a bank account in Italy. However, depending on the type of account, some banks may charge a monthly maintenance fee. There can also be additional costs for services like transfers or ATM withdrawals. While a minimum deposit isn’t always a requirement, some banks establish a minimum amount for their banking products.

Most online banks like N26 and Revolut typically offer standard accounts with no monthly fees and free ATM withdrawals up to a certain limit. It’s also possible to find traditional banks without a monthly fee if you’re under a certain age. Otherwise, you can generally expect to pay a monthly fee around 5–10 EUR (approx. 5.75–11.50 USD) for your bank account.

What is the tax system like in Italy?

Italy follows a progressive tax system, which means you pay more taxes if you earn more. The system is overseen primarily by the Agenzia delle Entrate (Italian Revenue Agency), which handles tax collection and enforcement. Like many EU countries, taxes in Italy fund a wide range of public services, including healthcare, education, and infrastructure. However, compared to the EU average, Italy’s tax burden is relatively high. Tax compliance can also be complex due to regional variations and detailed regulations. Keep reading to learn more about the tax system in Italy and different types of taxes.

Who is considered a tax resident?

As a tax resident, you’re expected to pay taxes on all your worldwide earnings.

You’re considered a tax resident in Italy if you meet any one of the following conditions for at least 183 days in a year:

• you have your habitual residence in Italy
• your domicile is in Italy, meaning your personal and family life is mainly centered in Italy
• you’re physically present in Italy, even if only for parts of each day
• you’re registered in the resident population register

Non-residents are only taxed on income earned within Italy, such as salaries from Italian employers or returns on local investments. If a non-resident owns property in Italy, they may also be liable for applicable property taxes.

How much is personal income tax in Italy?

In Italy, personal income tax is called IRPEF (Imposta sul Reddito delle Persone Fisiche), and it applies to overall income including salaries, business activities, and investments. The system is progressive, meaning the tax rate increases with your income, ranging from 23% to 43% depending on how much you earn.

Rates are set annually by the government. Below are the tax brackets in Italy as of 2025:

Besides IRPEF, which is established nationally, there are regional and municipal taxes.

Regional income taxes: They’re progressive as well and range from 1.23% to 3.33% depending on your income. Regional income tax depends on your region of residence. 

Municipal income taxes: Depending on your municipality of residence, municipal taxes vary from 0% to 0.9%.

Types of other individual taxes

• Value-added tax (VAT): The standard VAT rate is 22%. Some specific goods and services are subject to reduced rates or exemption from VAT.

• Social security contributions: Typically amount to around 40% of an employee’s gross salary, with roughly 30% paid by the employer and 10% by the employee.

• Capital gains tax: The standard tax rate is 26% on most financial investments. If you’re selling property, different rules may apply.

Do you need to file a tax return? How?

In Italy, filing a tax return (dichiarazione dei redditi) is required to report your income and calculate taxes owed or refunds due. There are two types:

• Form 730, a simplified return for employees and pensioners (often pre-filled)
• Modello Redditi Persone Fisiche (PF), used by the self-employed, freelancers, those with complex income, foreign investments, and non-residents with Italian income

Tax residents must declare their worldwide income, including wages, pensions, investments, and rental income. Non-residents report only income earned in Italy. Some individuals may be exempt from filing if their taxes are fully withheld at source like an employer.

To file:

1. collect income documents (pay slips, pension statements, rental contracts, etc.)
2. choose the correct form, and claim deductions like healthcare or education expenses
3. submit returns either online through Tax Agency or via a tax professional

Deadlines differ depending on the form:

• Form 730 must be submitted by 30 September, with any taxes owed typically deducted from your salary or pension starting in July.
• For Modello Redditi PF, the filing deadline is 31 October, with payments usually made in two parts: the first by 30 June and the second by 1 December.

If you file late, you have a 90-day grace period with a small penalty. After that, the return is considered missing.

Tax concessions for expats

Some expats may be subject to a tax abatement of 50% (up to 600,000 EUR annually) on their income tax if they meet the following criteria:

• must commit to keep their tax residence in Italy for at least four years
• must not have been fiscally resident in Italy in the three tax years prior to their relocation
• work activities must be primarily performed within Italian territory during the relevant tax period
• the worker must be highly qualified or specialized, as defined by the relevant law decree

An increased tax benefit of 60% is available when at least one of the following apply:

• relocation to Italy with a dependent child under 18
• a new child is born to or adopted by the expat during the years in which the favorable tax regime is applied

Taxes for self-employed in Italy

If you plan to work as a freelancer in Italy on a regular and ongoing basis, you’re required to register for an Italian VAT number (Partita IVA).

To register, self-employed individuals:

• must fill out Form AA9/12
• submit it to the Agenzia delle Entrate (Italian Revenue Agency) within 30 days of starting their activity.

The form can be submitted online through Fisconline or Entratel platforms, in person at a local tax office, or by registered mail.

Tax regimes for the self-employed

There are two main tax regimes in Italy:

• the flat-rate regime (regime forfettario)
• the standard progressive regime. Each is for different income levels and business needs.

Depending on the tax regime, the way your self-employment income is taxed in Italy can vary significantly in terms of rates, deductions, and administrative obligations.

The regime forfettario is a flat-tax scheme available to individuals earning up to 85,000 EUR (approx. 98,000 USD) annually. Under this regime, you are taxed at a fixed rate of 15%, or 5% for the first five years if you meet certain conditions. Business expenses aren’t deducted, and you’re exempt from VAT obligations.

The standard progressive regime applies to individuals whose income exceeds the threshold or who opt for a more detailed accounting method. This regime uses progressive tax rates (23% to 43%) and allows for the deduction of actual business expenses. You’re also required to charge and remit VAT, maintain full accounting records, and may be subject to additional regional and municipal taxes.

You can find further details on taxes for self-employed individuals on the Italian Revenue Agency’s official website.

Corporate tax for the self-employed

If you conduct business activities through a company, you’re subject to corporate income tax (IRES). The standard IRES rate is 24%, applied to the company’s taxable profit. This is calculated from the company’s accounting income, adjusted for allowable fiscal deductions and adjustments. Starting in 2025, some companies may get a reduced 20% rate (IRES Premiale) if they meet certain conditions.

In addition to IRES, companies must also pay IRAP (the regional production tax). The standard IRAP rate is around 3.9%.