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MONEY

How much cash can you travel with to Italy?

Italy has a limit on the amount of cash that you can bring into the country without declaring it. So what exactly are the rules and what happens if you don't declare?

Published: 23 May 2024 14:57 CEST
Italian customs officers at the Italian-Swiss border in Ponte Chiasso
Italian customs officers at the Italian-Swiss border in Ponte Chiasso in March 2020. Photo by Miguel MEDINA / AFP

Whatever reason you may have to bring large amounts of cash into the country – this could be anything from business to vacation to other personal matters – Italy has laws that keep you from doing so over a certain sum without first declaring it to border authorities. 

You can freely take cash (this goes for banknotes and coins of any currency) or other securities (e.g. cheques and traveller’s cheques, signed money orders, bullion) in or out of Italy only if they amount to a total of 9,999 euros or lower, according to Decree 195 2008, which sets out plans to prevent money laundering and tax evasion.

This means that any amount equal to or over 10,000 euros must be declared to the Italian customs authorities (Agenzia delle Dogane) by filling out and submitting a declaration form upon either entering or leaving the country. You can find an English version of the form at this link.

The requirement applies to people travelling to or from both EU and non-EU countries, and tightens existing EU-wide cash declaration rules, which only apply to movements to or from non-EU nations.  

The form requires travellers to specify their personal details, including address and ID number, details of their journey, the total amount of cash carried and its intended use or recipient, as well as the source of the money (property sale, business earnings, inheritance, etc.).

READ ALSO: Can businesses in Italy legally refuse card payments?

You can complete the form upon entering or leaving the country, or, in some cases, submit it electronically with Italy’s Agenzia delle Dogane before your journey. 

What happens if I don’t declare?

Failure to declare any amount over 10,000 euros comes with hefty penalties. 

Italian customs authorities have the power to seize the undeclared money and can hand out fines of up to 50 percent of the amount exceeding 10,000 (for instance, 50 percent of 4,000 in the case of a total of 14,000 euros), with 300 euros being the minimum possible fine.

Is there a limit to the amount of cash I can carry on me in Italy?

Unlike other EU countries – in Spain, people intending to carry 100,000 euros or over must notify the Treasury before doing so – Italy has no limit on the amount of cash you’re allowed to have on you. 

However, there’s a limit to the amount you can pay for something in cash. 

READ ALSO: What are the best banks for foreigners in Italy?

Transactions equal to or over 5,000 euros (the threshold was raised from 2,000 euros in 2023) must be made using a traceable means of payment, including credit or debit card payments, bank transfers and electronic money payments, according to Decree 231 2007.

People caught making or receiving payments over 5,000 euros in cash could face fines of a minimum of 5,000 euros.

Member comments

  1. Well…phew! Guess there’s something I won’t have to be worried about…ever. But cheers to those who do!

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For members

TAXES

IMU: Who has to pay Italy’s property tax?

The first instalment of Italy’s main property tax IMU is due by Monday, June 17th, this year – but not all homeowners in the country have to pay it.

Published: 14 June 2024 12:24 CEST
IMU: Who has to pay Italy’s property tax?

Italy’s main property tax, IMU (Imposta Municipale Unica, or Unified Municipal Tax) was introduced in 2012 to replace the local ICI levy.

It applies to both private and commercial property, building areas and agricultural land, and its exact amount varies by the type, value and location of the property.

IMU must be paid in two yearly instalments, with the first payment normally due by June 16th (the deadline was moved to June 17th this year as June 16th is a Sunday) and the second one due by December 16th. 

But the tax is a frequent source of confusion for homeowners in Italy as the rules on exactly which types of property it applies to have changed multiple times over the years.

Taxpayers are fully responsible for calculating and paying the amount of IMU they owe, meaning you won’t get a bill from local authorities specifying how much you need to pay for the relevant year.

Who does IMU apply to?

IMU is generally owed by owners of the following types of property:

  • Agricultural land (or terreno agricolo in Italian)
  • Building land (area fabbricabile)
  • Private houses other than the owner’s main residence (or prima casa), meaning second, third, fourth homes etc.
  • Luxury dwellings (case di lusso) falling under Italy’s cadastral categories A1 (stately homes), A8 (villas) or A9 (castles), regardless of whether they are the owner’s main residence or not.

Essentially, besides agricultural and building land owners, IMU is owed by all second-home owners in the country and owners of properties categorised as ‘luxury’ under Italy’s cadastral system.

READ ALSO: The Italian tax calendar for 2024: Which taxes are due when?

The tax doesn’t apply to main residences (prime case) but owners must be Italian residents and be registered as such under Italy’s national registry (Anagrafe) in order to qualify for this.

If you’re a foreign resident owning property in the country, you’ll have to pay IMU on it.

There are a number of IMU exemptions and discounts available to some categories of homeowners. 

These include for instance a 50-percent discount for retirees residing abroad and claiming a ‘totalised pension’ (pensione totalizzata), meaning a hybrid ‘Italian-foreign’ pension merging contributions made in Italy and those made in the foreign nation they reside in (as long as this country has pension totalisation agreements in place with Italy).

How do I calculate IMU?

Much like most other Italian taxes, calculating IMU is by no means an easy process, especially if you have little to no experience with paying it. 

That’s why it’s generally advisable to consult a chartered accountant (commercialista) who can ensure that the correct amount is paid and even arrange the transaction for you.

READ ALSO: What is an Italian commercialista and do you really need one?

That said, as a rough guide, you’ll need to take the cadastral value, or valore catastale, of your property (this is generally reported in the public deed of purchase but you can also request it at your local land registry).

Once you know the cadastral value, you must increase it by 5 percent and then multiply that number by a coefficient, which varies by the type of property you own. For instance, private residential buildings and flats have a coefficient of 160. 

Doing this will give you your property’s taxable base and from there you’ll be charged anything from 0.5 to 1.06 percent of that figure, depending on the rate (aliquota) applied by the municipality (comune) where your property is located.

How do I pay?

IMU can be paid via Italy’s standard tax form F24, which is used when paying most types of taxes in Italy, including Irpef income tax instalments.

The form can generally be found and submitted at most bank branches and post offices in the country. Some Italian banks even offer customers the option to complete and submit an F24 form directly online.

Alternatively, you can ask an Italian accountant to complete and submit the form on your behalf.

What happens if I don’t pay?

The Italian taxman shows little in the way of leniency when it comes to late filing or failure to pay IMU. 

Late filing can be punished with a fine of up to 30 percent of the IMU owed, whereas failure to pay can lead to enforced credit recovery procedures (recupero coattivo del credito) from local authorities. 

The good news here is that Italy has a procedure known as ravvedimento operoso (literally ‘active amendment’) which allows taxpayers to self-report and quickly rectify the delay in their IMU payments in exchange for significantly reduced fines.

For example, under this system, fines for late payment are reduced to 0.1 percent of the sum owed per day if the payment is made within the first 14 days from the relevant deadline.

Please note that The Local is unable to advise on individual cases. Find more information on the Italian tax office’s website or seek independent advice from a qualified tax professional.

For more information on property in Italy, check The Local’s property section.

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