13 Sep 2024
Did you know that Italy hosts more than 155,533 Overseas Filipino Workers as legal residents of Italy? This makes up 4.2% of the entire country’s population. The OFWs are hardworking individuals who are in Italy on a mission to send money to Philippines from Italy for their loved ones back home. However, every Filipino expat struggles to manage their finances abroad. For this reason, having a bank account in Italy is essential to streamline finances. Keep reading this blog to learn everything about Italian banking.
The history of Italian banking dates back to the Renaissance. The Banca Monte dei Peschi di Siena, established in 1472, is the oldest bank still operating worldwide. Italy's banking system comprises the Banca d'Italia, the country's central bank, and several other national, international, regional, and digital organizations. These service providers are used in wealth management, investments, and commercial retail banking.
Opening an Italian bank account is relatively more accessible for the Filipino expat. Several top banks provide on-resident accounts or services that seem suitable for expats. International citizens can choose from various account alternatives that multinational and digital banks offer.
Learn more: Choosing a Bank in Italy: A Guide for Pakistani Expatriates
Just because you live in Italy, it is not legally necessary for you to hold a local bank account. You can manage your money from anywhere globally by selecting an online or mobile bank.
Continue to keep your account overseas, though. You might find it challenging to manage your daily finances, especially if you have to send money online to Philippines from Italy on a regular basis. If you don't have an account in Italy, getting insurance or paying utility bills might also seem challenging.
Generally, you can only open an Italian bank account if you relocate there. This is because banks want you to physically deliver paperwork, including your Italian tax number and evidence of residency. Some do allow non-resident accounts, so you can create one now and then change your personal information once you've moved.
When you go to Italy, using your foreign account should still be easy before taking care of your Italian banking. Visa, Mastercard, and American Express are accepted at many stores and restaurants, and most ATMs accept international cards. However, you must pay bank fees if it's headquartered outside the Eurozone.
With mobile banking, you can manage your money from anywhere in the globe quickly and easily. International expats are even more drawn to online and mobile-only services like Revolut as they provide cross-border services and can be accessed from a distance. With a smartphone, you can open a mobile account in minutes, unlike with traditional banks. Any necessary identity documents can also be sent digitally. They normally only want your home address, phone number, and email address. The following are a few mobile banks that are active in Italy:
Most Italian banks may limit you to a primary account (conto base) if your credit score could be better. This is comparable to a basic current account, which costs either €3–4 per month or is accessible. It offers minimal features. Banks often waive fees if your yearly income falls below a specific level.
You may have to manage the funds, use a debit card, and send and receive money inside the Single Euro Payments Area (SEPA) with a basic account. Access to more complicated products, such as overdrafts and loans, might seem limited.
Italian banks offer two types of bank accounts, as mentioned below.
In Italy, a current account is the most popular bank account. You can use this to send and receive money, pay bills online, get debit and credit cards, and apply for loans or overdraft protection. Even though current accounts are often free, they have specific limitations, such as fewer credit card or loan alternatives. Additionally, banks offer choices for upgrading an account, such as premium or gold status, generally for a certain monthly or yearly price.
In Italy, specialized current accounts are available for the following:
A savings account is easy to open with the majority of retail banks. You can withdraw money from easy-access accounts at any moment without incurring fees. You can also use this bank account to make a money transfer from Italy to Philippines. There is a minimum notification time before withdrawal from deposit accounts.
Most traditional Italian banks need you to visit a branch to create a new account physically. This is due to their need for hard copies of the paperwork. When opening an Italian account, the following paperwork is required:
Your account will be open and operational once these documents are authorized. Credit and debit cards often come through the mail within a few days at the address that you provide to your Italian bank.
You will require a business bank account if you run a business on the Italian land with Italian customers. This kind of account can also benefit independent contractors and sole proprietors if it simplifies company processes. Bank accounts, lending and investment goods, company insurance, and growth programs are just a few business-specific products most big banks provide. To get a business bank account in Italy, it is necessary for at least one director to visit a branch and provide the following physically:
The monthly costs for business bank accounts in Italy vary from €15 to €50. The fees are associated with the same services as a personal account.
While having a bank account can make your life easier in Italy, you do not need to use it to make an online money transfer from Italy to Philippines. ACE Money Transfer offers a much more convenient, affordable, and quicker remittance service. You can sign up for free and start sending remittances to the Philippines in the best possible way.
Yes, many Italian banks offer non-resident accounts that allow you to open an account before relocating. Once you're in Italy, you can update your details to reflect your residency.
No, the Italian government does not restrict you from opening a bank account in this case. However, banks may ask for proof of income or employment, which can be substituted with other financial documentation.
The costs vary by bank and account type. Basic accounts may be free or charge a small fee (around €3–4 per month), while premium accounts may have higher costs depending on the services offered.
Yes, many Italian banks offer specialized accounts for low-income students and individuals. These accounts often have reduced fees and limited services, such as basic transactions and debit card usage.
You can use your Italian bank account to send remittances to the Philippines. However, services like ACE Money Transfer may offer better options for quicker and more affordable transfers.
References:
https://www.lavoro.gov.it/documenti-e-norme/studi-e-statistiche/filipino-community-2023
