Opening an Italian bank account to buy a home

What the deed has to say about payment

Whether the seller is a private person or a company, the parties must insert in the deed a sworn declaration (dichiarazione sostitutiva di atto di notorietà). According to the tax authority’s guide to buying a home, it must contain:

• the detailed way the price was paid (cheque, bank transfer and so on);
• whether an estate agent took part in the deal and, if so, the agent’s identifying data, VAT number, tax code and entry in the chamber of commerce register (REA);
• the fees paid for the agency work, again with the detailed method of payment.

If any of this is omitted, incomplete or untrue, an administrative fine of €500 to €10,000 applies, in addition to the criminal consequences of a false declaration. The tax authority adds a second effect: the sale becomes subject to a value assessment for registration tax even if the parties had asked to be taxed on the cadastral value.

The practical consequence for a foreign buyer is simple. Pay in a way that leaves a record that names you, the seller and the amount, and keep the evidence. The declaration is made by the parties, so what you state should match your bank records.

Do you need an Italian account?

The notariat’s page on the legal rules of a house purchase mentions no requirement for an Italian account. It does say you pay the notary’s fees, that a notary of your choice must be involved, and that you should involve him before committing. So the question to put to the notary’s office, early, is a practical one: how it wants the money to arrive (from a foreign account by transfer, or from an Italian account), and by when. Sources Payotte read give no deadline in days for cleared funds, so rely on the office’s instruction.

Reasons buyers still open an Italian account, none of them legal conditions:

• paying a deposit or balance without foreign transfer delays or fees;
• having a local account for the utility contracts, the property tax (IMU) and the condominium charges after the purchase;
• a lender may want the instalments to be debited from an account with it. The Banca d’Italia’s guide to the mortgage does not list this as a rule, so ask the lender.

The basic account for people who live in the EU

The central bank’s consumer site explains the basic account (conto di base). The right comes from EU Directive 2014/92 and article 126-noviesdecies and following of the Italian Banking Act. The key points:

• Who can open one: banks are obliged to offer it to anyone who has the right to stay legally in Italy or in another EU state, including people without a fixed address and asylum seekers. The page says “tutte le banche, Poste Italiane e gli altri operatori” must offer it and open it when you ask. That is the wording the central bank uses; it does not say your nationality or your residence in Italy is a condition, only the legal right to stay in the EU.
• Who cannot: if you already have a current or payment account in Italy; if you want the account for a business, trade or profession (it is reserved to consumers); or if you do not stay legally in the EU.
• What it does: transfers sent and received, debit card payments, salary or pension credits. It carries a low annual fee, generally cheaper than an ordinary account, and is free under income or pension thresholds set by law.
• Refusal: the bank may refuse only if it has a well-founded suspicion that the account would be used for illegal purposes. It must tell you immediately and give the reasons in writing within ten working days at the latest. You can complain to the bank, send a statement to the Banca d’Italia or go to the banking and financial ombudsman (Arbitro Bancario Finanziario).

A basic account is enough to receive and make the transfers of a purchase. It will not come with a mortgage; a loan is a separate product with its own assessment, covered in mortgages for non-residents in Italy.

What the pages do not tell you is which documents a given branch asks of a foreign applicant: that depends on the bank, so ask before travelling. The tax code guide covers the one identifier Italian offices most often come back to.

Keeping a clean trail

1. Pay each amount (deposit, balance, agency fees if you owe them) by a method that is recorded in your name.
2. Keep the instruction, the confirmation and the statement line showing the debit.
3. Tell the notary the same facts you would tell your bank: who paid, how much, when, how.
4. Ask the agent to put the fee and its payment method in writing, because the deed must declare both.

Which professional to consult

The notary drafts and collects the payment declaration and tells you what the office accepts. A mortgage broker explains what lenders require from an applicant who lives abroad. A real estate agent has to supply identifying data for the declaration. See notaries, mortgage brokers and real estate agents. Payotte does not list or rank banks or notaries.