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Tax guidelines and regulations for large money transfers into Italy

Both you and your recipient may be required to file tax forms.

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.

How Italy regulates large remittances

Italy taxes monetary gifts or donations, though the exact amount depends on your relationship to the recipient.

  • Spouse, parent or child. Any amount over €1 million will be taxed at 4%.
  • Sibling. Any amount over €100,000 will be taxed at 6%.
  • Other relatives. The full gift will be taxed at 6%.
  • Non-relatives. The full gift will be taxed at 8%.

Required forms

The tax will need to be paid by your recipient, and they’ll need to fill out an F23 form. It can be filed at any bank or post office.

Compare providers for your next large transfer to Italy

Our table lets you compare the services you can use to send money abroad. Compare services on transfer speeds and fees, then click Go to site when you're ready to send.
1 - 16 of 16
Name Product Filter Values Fastest Transfer Speed Fees (Pay by Bank Transfer)
OFX
24 hours
$0
OFX has no maximum limit transfers, with competitive exchange rates for 45+ currencies.
CurrencyTransfer
24 hours
$0
CurrencyTransfer lets you shop around for the best exchange rate on its online marketplace.
Wise (TransferWise)
Within minutes
From 0.41%
Wise uses the mid-market rate and transparent fees to help you send money in 45+ currencies.
OFX International Money Transfers (Business)
24 hours
$0
Business customers: Send safe, no-limit transfers with no fees and competitive exchange rates.
CurrencyTransfer for Business
24 hours
$0
Increase business efficiency with zero transaction fees and same-day transfers.
Revolut
Revolut
Within minutes
From $0
Revolut offers international exchange rate for over 150+ currencies and transfers within 30 minutes.
Currencies Direct
24 hours
$0
CurrenciesDirect makes transferring money abroad simple with bank-beating exchange rates. Currencies Direct may call you to confirm your transfer, so be prepared for a phone call shortly after initiating a transfer.
Xe
Within minutes
$3
Xe has fast transfers with low fees and a range of foreign currency tools.
Revolut
Revolut
Within minutes
From $0
Revolut offers international exchange rate for over 150+ currencies and transfers within 30 minutes.
Currencies Direct (business)
24 hours
$0
Minimizes costs of international transactions and offers custom solutions for business clients. Currencies Direct may call you to confirm your transfer, so be prepared for a phone call shortly after initiating a transfer.
Xe Money Transfer for Business
24 hours
$0
Save your time and money with Xe Money Transfer for business.
Revolut
Revolut
Within minutes
From $0
Revolut offers international exchange rate for over 150+ currencies and transfers within 30 minutes.
Cash App
Within minutes
From $0
Make payments to your friends and families easily from your phone with no transfer fees. Payments available to US bank accounts only.
Instarem
24 hours
From 0%
New Instarem customers will get a special FX rate and zero-fees on their first transfer.
Instarem offers offers rewards on every transaction.
MoneyGram
Within minutes
From $0
First online transfer is free.
MoneyGram has fast cash pick-up transfers to more than 350,000 agent locations worldwide.
Airwallex
Airwallex
Within minutes
$0
After spending $15k in your first 90 days, receive a one-time $500 bonus that will automatically be credited to your account on any FX conversion.
Airwallex can help you make business payments to 150+ countries in 60+ currencies.
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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 $17,000, 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.

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

How much money can I send to Italy?

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.

How to send money to Italy

Bottom line

Italy is a country that taxes gifts, which means if you’re sending any amount to someone who isn’t a spouse, parent, child or sibling, they’ll need to pay taxes on it.

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.

Frequently asked questions