Moving money between the United States and Italy is one of the most practical and frequent challenges for American expats. Whether you are transferring savings to set up your new life, receiving U.S. income while living in Italy, sending money to family, or managing finances across both countries, the method you choose significantly affects how much actually arrives. Exchange rate markups and fees can quietly consume thousands of dollars per year if you use the wrong channels.
How International Transfers Work
International money transfers between the U.S. and Italy involve converting USD to EUR (or vice versa) and moving funds between banking systems. Two primary networks handle this.
SWIFT (Society for Worldwide Interbank Financial Telecommunication): The traditional international banking network. When you send a wire transfer from a U.S. bank to an Italian bank, it travels through the SWIFT network. SWIFT transfers involve your sending bank, potentially one or more intermediary (correspondent) banks, and the receiving bank. Each institution in the chain may deduct fees, and the exchange rate applied is typically the bank’s retail rate, which includes a markup of 1% to 3% above the mid-market rate.
SEPA (Single Euro Payments Area): The European payment system covering all EU/EEA countries. Once your money is in a European bank account, SEPA transfers between Eurozone accounts are fast (1 business day), free or nearly free (EUR 0 to EUR 1), and function like domestic transfers. SEPA is relevant once you have an Italian bank account and need to move money within Europe.
Transfer Methods Compared
Traditional Bank Wire Transfers
Sending a wire from your U.S. bank (Chase, Bank of America, Wells Fargo, etc.) to your Italian bank account via SWIFT. Fees typically run USD 25 to USD 50 per outgoing transfer from the U.S. side, plus EUR 5 to EUR 15 on the Italian receiving side, plus potential intermediary bank fees of USD 10 to USD 30. The exchange rate markup is where the real cost hides: banks typically apply a 1.5% to 3% markup over the mid-market rate. On a USD 10,000 transfer, a 2% markup means you lose approximately USD 200 to the exchange rate alone, on top of the wire fees. Transfer time is 1 to 5 business days.
Online Transfer Services
Specialized platforms offer significantly better rates and lower fees than traditional banks.
Wise (formerly TransferWise): The most widely recommended service among expats. Wise charges transparent fees (typically 0.4% to 0.6% of the transfer amount for USD to EUR) and uses the real mid-market exchange rate with no markup. A USD 10,000 transfer costs approximately USD 40 to USD 60 in total fees. Transfers arrive in 1 to 2 business days. Wise also offers multi-currency accounts with local bank details in multiple countries, allowing you to hold, receive, and send USD and EUR from the same account.
OFX: Competitive rates for larger transfers (USD 5,000+). No fixed fees; the cost is built into a small exchange rate markup (typically 0.3% to 0.5%). Offers rate alerts and forward contracts to lock in rates for future transfers. Particularly useful for large, planned transfers like property purchases.
Remitly: Competitive for smaller, frequent transfers. Multiple delivery speeds and payment methods.
PayPal/Xoom: Convenient but typically more expensive than dedicated transfer services. Exchange rate markups of 2% to 4% plus transaction fees.
Revolut: Popular in Europe, offers competitive exchange rates (mid-market on weekdays during market hours with a free plan, small markup on weekends and above monthly limits). Useful for day-to-day European spending with the virtual and physical Visa/Mastercard.
Cost Comparison Example (USD 5,000 Transfer)
A typical bank wire might cost USD 45 in fees plus USD 100 to USD 150 in exchange rate markup, totaling approximately USD 145 to USD 195. Wise would cost approximately USD 25 to USD 30 total (fee plus mid-market rate). OFX would cost approximately USD 15 to USD 25 (built into the rate). The difference adds up quickly if you transfer monthly.
Setting Up Your Accounts
Italian Bank Account
You will need an Italian bank account (conto corrente) for rent payments, utilities, salary deposits, and daily life. Opening an account requires your passport, codice fiscale, proof of residence or domicile (some banks accept a declaration of domicile for new arrivals), and in some cases, your permesso di soggiorno. Major banks include Intesa Sanpaolo, UniCredit, BNL (BNP Paribas), and Banca Mediolanum. Online banks like Banca Sella, Fineco, and N26 (Germany-based, available in Italy) offer lower fees and English-language interfaces. Monthly account fees range from EUR 0 (basic online accounts) to EUR 5 to EUR 15 (traditional banks with branch access).
For detailed guidance on the Italian banking system, see our banking guide.
Keeping U.S. Accounts
Maintain your U.S. bank accounts and credit cards. Many U.S. financial institutions will close or restrict accounts of customers with only a foreign address, so consider maintaining a U.S. address (family member, mail forwarding service) on file. Charles Schwab and Fidelity are generally considered expat-friendly for brokerage accounts. For banking, institutions with international wire capabilities and reasonable fees are preferred.
Tax and Reporting Implications
Americans with Italian financial accounts have reporting obligations.
FBAR (FinCEN Form 114): Required if your aggregate balance across all foreign financial accounts exceeds USD 10,000 at any point during the year. This includes Italian bank accounts, investment accounts, and even accounts on platforms like Wise or Revolut if they hold funds in your name. Filed electronically with FinCEN by April 15 (automatic extension to October 15). Penalties for non-filing are severe: up to USD 12,906 per violation (non-willful) or the greater of USD 129,210 or 50% of the account balance (willful).
FATCA (Form 8938): Required if your foreign financial assets exceed USD 200,000 at year-end or USD 300,000 at any point (for filers living abroad). Filed with your tax return.
Italian monitoring requirements (Quadro RW): Italian tax residents must report foreign financial assets (including U.S. bank accounts, brokerage accounts, retirement accounts, and real property) in the Quadro RW section of their Italian tax return. IVAFE (a financial assets tax of 0.2% on the value of foreign financial assets) and IVIE (a property tax on foreign real estate) may apply. See our tax guide for details.
Practical Tips
Use Wise or a similar service as your primary transfer method. The savings over bank wires are substantial and compound over time. Set up recurring transfers if you have regular income in USD that needs to reach your Italian account. Many services offer scheduled transfers. Watch exchange rates. The EUR/USD rate can fluctuate 5 to 10% over a year. For large transfers (property purchases, moving savings), consider rate alerts and forward contracts through OFX or similar services. Avoid airport currency exchange kiosks and hotel exchange services. Their markups are typically 5% to 10%. Never transfer large amounts in cash. Declarations are required for cash movements exceeding EUR 10,000 when crossing EU borders, and large cash deposits trigger anti-money laundering inquiries at Italian banks. Keep records of all international transfers for both U.S. and Italian tax purposes.