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MONEY

Which Italian bank accounts have the lowest fees in 2023?

Having a bank account in Italy can prove surprisingly expensive, and fees have soared over the past year. Here's a look at the cheapest banking options available now if you're planning to switch.

Which Italian bank accounts have the lowest fees in 2023?
Account maintenence fees and harges for transactions and cash withdrawals add up and can make having an Italian bank account surprisingly expensive. (Photo by ANDREAS SOLARO / AFP)

Some 4.4 million banking customers in Italy have switched their current account provider within the past year due to “excessive costs”, according to one survey commissioned by price comparison website Facile.it, which found account fees charged by Italy’s six leading banks have increased by between eight and 26 percent over the past year.

But figuring out which is the cheapest account available – and then actually making the switch – is not always an easy feat in Italy where there’s a mind-boggling array of banking options to choose from.

The very existence of bank fees comes as an unwelcome surprise for many new foreign residents, particularly those coming from countries like the UK where banks don’t generally charge customers for the privilege of keeping their money in a current account.

READ ALSO: What you need to know about opening a bank account in Italy

But fees for the most basic of banking services are an accepted fact of life in Italy, where customers spend a lot of time monitoring charges from their banks and, once these become intolerable, trying to find a better deal.

The canone, the monthly maintence fee paid for simply keeping an Italian conto corrente (current or checking account) open, now adds up to anything between 28 and 154 euros per year at Italy’s six main banks, according to the Facile.it survey.

A branch of Italian bank Intesa SanPaolo in Milan. (Photo by GIUSEPPE CACACE / AFP)

Banks say these fees are rising due to inflation, and traditional banks add that keeping branches open comes at an ever-increasing cost.

This figure doesn’t include the range of common extra charges for basic transactions including money transfers, card payments, and ATM withdrawals. The average cost of transactions has risen by 15 percent on average in the past year, according to consumer groups, pushing the cost of maintaining some accounts to around 200 euros a year.

Some accounts also come with other fixed and variable costs, such as fees for issuing your first debit or credit card, and stamp duty fees when opening an account.

But fees vary widely – one analysis found charges for comparable accounts could vary by as much as 10 times between banks – and disgruntled customers looking to switch will be pleased to know that accounts with low or even no monthly fees do exist in Italy.

According to Facile.it, online-only accounts are dramatically less expensive to maintain: 77 percent cheaper on average, in fact, compared to ‘traditional’ accounts opened in person. Just over half (54 percent) of online banking customers in Italy reportedly pay any fees at all.

The bank accounts that are rated cheapest by Italy’s main comparison websites in February 2023 include:

  • BBVA Conto Corrente;
  • ING Conto Corrente Arancio;
  • Widiba Conto Corrente;
  • ControCorrente Semplice IBL Banca;
  • Conto Crédit Agricole online;
  • Banca Mediolanum Selfyconto.

Find details about these and other accounts on Italian price comparison websites ConfrontaConti, Facile.it and SOStariffe.

Financial newspaper Il Sole 24 Ore also has an online comparison tool that can deduct your expenses from your likely interest to show exactly how much an account will really cost you.

And of course, make sure to read the fine print: some low-cost accounts are promotional offers which expire after a year or so, leaving you suddenly paying hefty fees. Others look more expensive, but are actually free if you maintain a low minimum balance or have your salary paid in to that account monthly.

How do you close or move bank accounts?

Once you’ve found a better deal, you’ll need to move your money and close your old account – a process which sadly isn’t always as straightforward as it should be, and may incur yet more fees.

It’s not usually as simple as walking into your local branch and asking to close your account, so you’ll need to check your bank’s website and your account contract carefully.

READ ALSO: Which are Italy’s best value supermarkets?

To close an account, in most cases, you’ll need to send a registered letter or raccomandata to your local branch including signatures from everyone on the account. Some banks will also charge a fee to close your account.

Italian law protects your right to transfer payment services from one bank account to another. Transferring your money, direct debits, and other services should be free and should take no more than 12 days for your current bank to complete the procedure – though in reality it may take weeks, or longer.

The study by Facile.it found that almost 34 percent of people surveyed (equal to some 1.5 million people) reported problems and delays when transferring payment services to a new account – a figure that rose to almost 45 percent in southern Italian regions.

Do you have any tips or recommendations for other readers looking for a low-cost bank account in Italy? Please share them in the comments below.

Member comments

  1. For young people, Intesa Sanpaolo is the best bet as they have a promotion for new clients where there are no fees applied if you are under 35 years old. This gives you the best mix of using your local branch as well as their excellent online banking. Of course, be prepared to switch accounts once you hit 35 as the fees are rather high.

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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.

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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