Both Italy and the US require large gifts to be declared — but the US places responsibility on the donor and Italy places responsibility on the donee. This means that both you and your recipient may need to declare large gifts, even if you aren’t both required to pay.
What are the penalties in Italy if my recipient fails to file?
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?
Generally, yes — though it depends on how much you’re sending and for what purpose. Gifts over $15,000, business transactions over $10,000 and any foreign account in your name that’s held more than $10,000 in the last year will need to be reported to the IRS.
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.
As much as you want — there isn’t a legal cap on how much money you can send to Italy. Some transfer providers will set their own limits, so if you’re planning a large transfer, use a limit-free provider like XE.
How will my recipient in Italy get the money?
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 or delivery to a mobile wallet.
To receive your funds in person, your recipient may need to provide ID or a confirmation number.
Leah Fallon is an editor with more than 10 years of teaching under her belt. She's written feature pieces for regional print and digital media. When she's not helping people with their finances, you can find her wrangling her two sprightly girls or running the trails of Virginia.
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