Italy Guide: Money

Our money guide provides information on bank accounts, credit and debit cards and money transfers. If you need to open a bank account, we will explain how to do it - step by step.

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  Income tax returns

  Filing and payment

  If employed, your employer will deduct income tax and social security contributions directly from your salary. This means you do not have to file a tax return unless you have another source of income. If you are self-employed, you will have to file your income tax by filling in a unico form.

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  Banks

  Where to manage your finances

  There are three kinds of bank in Italy: ordinary commercial or credit banks, co-operative banks ( banchi popolari cooperative) and co-operative credit banks ( banche di credito cooperativo).

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  Accounts

  How to open a bank account in Italy

  You can open a bank account in Italy whether you’re a resident or a non-resident.

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  Cards

  Debit, Credit & Charge Cards

  Debit, credit and charge cards are referred to collectively as credit cards in Italy, which has over 30 million in circulation, almost two-thirds of which are debit cards.

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  Cost of Living

  What is the cost of living in Italy?

  No doubt you would like to try to estimate how far your euros will stretch and how much money (if any) you will have left after paying your bills.

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  Income tax

  An introduction to Italy’s income tax

  Italy has a pay-as-you-earn (PAYE) system of income tax ( imposta sul reddito delle persone fisiche/IRPEF), whereby employees’ tax is withheld at source by employers.

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  Income Tax Liability

  Who is liable to pay income tax?

  Your liability for Italian income tax depends on where you’re domiciled. Your domicile is normally the country you regard as your permanent home and where you live most of the year.

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  Taxable Income

  What part of my income is taxable?

  Taxable income in Italy is officially divided into the following six categories, each of which is defined by law: employment, self-employment, business, property (land and buildings), capital (principally dividends and interest), and ‘ miscellaneous’ income.

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  Income tax allowances

  How can I pay less?

  The following allowances can be made against taxable employment income:

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  Income Tax Rates

  Rates and credits

  Italian income tax is levied at the following rates on taxable income:

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