Just Moved to Italy: 6 Practical Tips to Start Setting Up Your Financial Life

Moving to Italy as an EU Citizen

So, the time has finally come—your move to Italy is now a reality! Moving to a new country should be an exciting experience, but let’s be honest: Italian bureaucracy can feel daunting at first. And when you’re trying to get your finances in order, the fear of making the wrong move—one that could lead to tax headaches or financial losses—can make things even more stressful.

I know this firsthand. After spending several years working in Switzerland, I returned to Italy in 2018 and quickly realized I was not as prepared as I thought. Even as an Italian citizen, I found myself lost in a maze of to-dos: Could I open a bank account right away? What should I do with my foreign accounts and investments? How do I register as a resident? And what about the right tax regime?! It took me some time (and trial and error) to get everything set up correctly.

But don’t panic! With a bit of organization and the right support, the process can actually be quite smooth. First of all, if you’re an EU citizen relocating to Italy, you benefit from simplified procedures compared to non-EU residents, which is already a plus. Now, let’s go through these six practical steps to ensure a seamless transition:

1. Organize Your Financial Records and Gather Documentation
2. Get Your Tax ID (Codice Fiscale) and Register Your Residence
3. Open a Bank Account
4. Understand Your Tax Regime and Obligations
5. Set Up Your Investment Plan and Optimize Your Fiscal Situation
6. Plan Your Pension Contributions

1. Organize Your Financial Records and Gather Documentation

Start with clarity! Before diving into Italian bureaucracy, ensure all your key financial records are in order. This includes bank statements, investment portfolios, proof of income, and any documents related to assets or liabilities you hold abroad.

Now is the perfect time to take stock and bring clarity:

• Where are your financial assets?
• What do you own?
• How much do you have?
• Which documents can prove it?

Having everything organized will save you time and hassle when dealing with Italian authorities or opening financial accounts.

My suggestion? Archive your relevant documents into the following categories:

• Personal ID Documents → Passports, national ID cards, birth certificates
• Proof of Previous Residency → Rental contracts, utility bills, or residency certificates
• Tax and Financial Records → Tax ID from previous countries, tax returns from the past 2–3 years, annual bank statements
• Pension Contributions and Social Security Records
• Income and Employment Documents → Work contracts, payslips, self-employment records (if you’re a freelancer)
• Property & Assets → Mortgage statements, rental agreements or property deeds, vehicle registration and insurance details
• Insurance and Healthcare Documents

I created this graphic as a checklist to help you gather the documents you’ll need:

2. Get Your Tax ID (Codice Fiscale) and Register Your Residence

The Codice Fiscale is essential for almost every financial or legal activity in Italy, from opening a bank account to signing rental agreements. You can obtain it through the Agenzia delle Entrate (Italian tax office).

Additionally, as an EU citizen, you must register your residence with the local municipality within 90 days of your arrival if you plan to stay long-term. This will grant you a “Certificato di Residenza,” which, together with the Codice Fiscale, will be required when opening a bank or investment account or applying for loans and mortgages as an Italian resident.

3. Open a Bank Account

An Italian Conto Corrente (bank account) is crucial for managing your daily finances, paying bills, and receiving income locally. To open one, you’ll need:

• Your passport
• Your Codice Fiscale
• Proof of residence
• A series of anti-money laundering compliance documents, which your bank will provide

To manage your investments locally, you will also need a Deposito Titoli—a securities account where your financial instruments (stocks, bonds, ETFs, etc.) are held for safekeeping.

4. Understand Your Tax Regime and Obligations

Italy’s tax system can be complex, especially if you have income or assets in other countries. You’ll need to:

• Understand when and how you will gain tax residency
• Determine whether you qualify for special tax regimes, such as the flat tax for new residents or the “impatriati” scheme, which offer tax benefits to foreign residents and returning Italians

Consulting a tax advisor familiar with cross-border financial matters can help you optimize your savings and investment strategy!

5. Set Up Your Investment Plan and Optimize Your Fiscal Situation

Time to revisit your financial overview from Step #1 and structure an appropriate investment plan. Financial planning for expats means dealing with uncertain timeframes, bridging multiple legislations, and optimizing investment tools for cross-border moves.

Foreign Financial Assets:

If you hold financial assets on a non-Italian platform, you’ll need to:

• Ensure compliance with Italian tax laws by declaring foreign assets in your annual tax return
• Calculate the tax due on investment gains/losses
• Pay the IVAFE (wealth tax on foreign financial assets)

Consider transferring your assets to an Italian bank or consolidating them to streamline your fiscal situation. Italian banks offer the “Regime Amministrato,” where they handle investment taxes on your behalf—this can significantly simplify your financial life. A financial advisor and tax consultant can help you determine if this is the best option for you.

6. Plan Your Pension Contributions

If you’re working in Italy, it’s important to understand how the pension system works and how your contributions will impact your future retirement. The Italian pension system consists of:

1. Public pensions (managed by INPS)
2. Professional pension funds (Fondi Pensione Chiusi)
3. Private pension schemes (Fondi Pensione Aperti and Private Insurance Plans)

Each system has specific rules on when and how you can access your money. If you don’t plan to stay in Italy long-term, carefully consider whether and how you want to contribute to private pension schemes to keep your assets flexible.

Moving within the EU/EEA? Your public pension contributions will be recognized across member states—each country will pay a portion of your pension based on your working years. For non-EU pension schemes, check whether there are agreements between Italy and your country of contribution for recognizing or transferring pensions.

Final Thoughts

Setting up your financial life in Italy takes effort, but with these practical steps, you’ll be well on your way to a secure and organized financial foundation.

If you need personalized advice to simplify the process, don’t hesitate to reach out for expert guidance.

Contact me today