Sending large money transfers to Italy: Tax laws to know | finder.com
Laws and documents when sending money to Italy

Laws and legal documents when transferring large sums of money into Italy

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

When you’re emigrating, starting a business or studying abroad, here’s how to navigate taxes on large transfers.

Sending a lot of money to Italy for even the most exciting reason can often involve at least one unexciting thing: tax laws and legal paperwork. Before you move your money out of the US, get familiar with the laws and regulations in beautiful Italia.

How Italy regulates large remittances

Americans sent more than $1.4 billion to Italy in 2015 alone. Many providers in the US offer transfer services to Italy. But if you’re sending large sums of money, your recipient could be on the hook for taxes regulated by the Italian Revenue Agency.

As far as we can tell, taxation rules on gifts depend in large part on whether you’re related to your recipient. In general, Italy does not tax gifts of any amount to spouses, children and grandchildren.

If you’re gifting more than about 180,000 euro to a nonrelative, your beneficiary may be subject to taxes on receipt. Tax rates vary from 4% to 8% of the amount you’re sending — a large bite out of your gift.

What are the penalties for not filing a large remittance?

With so much attention on money entering and leaving Italy, if you fail to report large sums, don’t know you have to report them or don’t report them correctly — it will likely be discovered. Encourage your loved ones to declare any large remittance as income on their general tax return with the Italian Revenue Agency.

Failure to file taxes can result in penalties that range from 120% to 240% of the taxes due. To avoid severe penalties that can reverberate throughout your financial future, speak with a professional to guarantee that you comply with the laws of both the US and Italy.

Do I have to report large transfers out of the US?

To be safe, yes. By law, banks report cash transactions that exceed $10,000 and any transaction of any amount that raises an eyebrow. And independent money transfer specialists are sometimes held to thresholds as low as $1,000.

Sending a lot of money out of the country? Know what the IRS expects of you.

How will my recipient receive my remittance in Italy?

How your recipient receives your money in Italy depends on your provider and how you sent it. You’ll typically have the option of bank-to-bank transfers, cash pickups and even delivery to a mobile wallet.

To receive your funds in person, your recipient may need to provide ID or a confirmation number. If they own an account with an Italian bank or money transfer company, they may not need to provide this information each time you transfer cash.

As with all international money transfers, be wary of potential fraud and only send money to people you know. Using a reputable provider can safeguard you from potential scams.

How to set up a business entity in Italy

Money transfer services with no maximum sending limit

I want to send

to

Min. Transfer Amount Online Transfer Fee Description CTA Details
AUD 200 AUD 0 Low minimum transfer amount of just AU$200, with no set-up fees or transfer fees. Go to site Show details
AUD 250 AUD 10 Pay $0 fee when you transfer more than $5000, regardless of whether you transfer online, over the phone or in branch. Go to site Show details
AUD 50 AUD 15 Transfer amounts as low as $50. No maximum transfer amount. No transfer fees if you transfer more than AU$10,000. Go to site Show details
AUD 3,000 GBP 10 FC Exchange will match any competitor's exchange rates. Conditions apply. No transfer fee when transferring more than £10,000 or equivalent. Send money in over 130 currencies. No maximum transfer amount. Go to site Show details
AUD 250 AUD 0 $0 transfer fees for Finder customers. Transfer any amount from $250 upwards. $0 transfer fee on transfers over AU$10,000, $15 flat fee applies otherwise. 24-hour customer service available with a local support team. Go to site Show details
AUD 2,000 AUD 0 Great rates and $0 transfer fees for Finder customers. Access live rates, currency converter and market updates via the WorldFirst Money Transfer mobile app. Go to site Show details
AUD 200 AUD 0 TorFX guarantees to match any competitor's exchange rate for a transaction. Conditions apply.
Send money overseas in 45 currencies. Once registered, you'll be assigned an Account Manager who can provide support and guidance.
Go to site Show details

Compare up to 4 providers

Frequently asked questions

Was this content helpful to you? No  Yes

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Privacy and Cookies Policy and Terms of Use.

US International Money Transfers Offers

Important Information*
XE Money Transfer

Transfer up to $500,000 with no minimums and no fees.

WorldRemit International Money Transfers

Use promo code FINDER to send your first transfer at no fee to 110+ countries for bank-to-bank deposit, cash pickup or mobile top-up.

World First Foreign Exchange

Exclusive offer: $0 transfer fee
No-limit transfers with competitive exchange rates for 100+ currencies.

TransferWise International Money Transfers

Enjoy high maximum transfers into more than 20 currencies while saving up to 90% over local banks.

Go to site