Transferring finances overseas, contrary to what one might think, is one. Legal practicewhich in many cases allows you to take advantage of better tax legislation than Italian law. However, it is an operation It should be properly planned and executed.To avoid ending up under the scrutiny of the Revenue Agency.
Banking operations, in fact, respect different laws in the country you decide to move to: regulations and services offered to customers differ and it is important to understand the tax implications and responsibilities before moving. Be properly informed about stripes. be respected.
But let’s go into detail and try to understand how to transfer money abroad while respecting all Italian laws.
Overseas Financial Transfers, Reasons for Choice
They are different. Tax aspects This is important to consider when deciding to transfer a property. Your residence abroad. And with it your finances.
The revenue agency expects immigrants to leave only a fraction of their assets in our country, mostly consisting of financial investments or virtual currencies. In other words, it is important that the majority of the finances are held abroad. There are two reasons for determining this choice:
- It must be able to be demonstrated. Financial interests – at least in most cases – No longer associated with Italy.;
- gave Life and investment needs Now they are managed not from Italy but from abroad.
Transferring Money Abroad: Checklist
Transferring money abroad is perfectly legal.. But it is important to prepare a precise checklist of actions to be taken and not follow. It will avoid getting into some bureaucratic walls. Let’s see how important it is to move.
Before transferring you should:
- It is important to contact the bank. Intention to go abroad. One of the opportunities to make an assessment is to work with a Current account for non-residents;
- I must update Bank contact details. Operation should be done before and after transfer, also communication Your air registration address. This operation must be carried out to comply with the tax obligations for Italy, but also to allow the bank to comply with the automatic communication obligations of CRS and Fatca.
- If there is any in the current account. Direct Debit Or God Standing orders Unnecessary must be canceled. When you decide to move abroad, movements on the Italian current account must be minimal and must be linked to legitimate and strictly necessary operations.
- possible Outstanding debt Must pay, including theirs Credit or debit cards. The same is true for installment payments and movements on the Italian current account.
- You might want to consider opening one. Foreign bank accountWith multi-currency options, to protect your money during these transactions. A banking relationship abroad is important for transferring your finances, but also to demonstrate that your financial interests are no longer in Italy. Or at least that those who remain are a minority.
How to transfer after transfer
Actions to be taken later Transfer of funds abroad Just as important as what was done before the operation. Here’s what you need to do next:
- Must be open A checking account at a local bank To manage daily finances. As in Italy, establishing banking relationships is essential to managing day-to-day transactions. Apart from being a basic element for the building Evidence file In the event that tax must be determined;
- It is important to use the options available through Mobile banking To facilitate all operations related to various money transfers and management of banking relationships. If it is true that moving abroad from Italy is not a problem, then it is. Transfers from abroad to Italy must be limited as much as possible.;
- i International transfer services They can allow you to save money when you travel abroad.
The most important chapter, retirement
A critical issue that needs to be addressed with due diligence when proceeding with overseas financial transfers. Pension. Choosing to be a foreigner can, in fact, affect Social Security checks.
Effects can include both i. Payment of Compulsory Contribution That is possible Payment of supplementary forms of pensionWhich, more often than not, represents a real financial investment. In this case it is necessary:
- check Is it possible to continue paying pension? Even if you live in another country. A tool can be accessed in many cases: Participatory aggregatewhich allows you to collect social security contributions with foreigners, to find out what the pension needs are abroad or in Italy. This is why it is important to check your position with INPS and that abroad;
- Who was planning to go inside. Pension abroad You must identify the requirements of the country you wish to travel to. Whatever decision you plan to make, it’s a good idea to evaluate it. Requirements for availing superannuation And understand that if any Supplementary Pension Funds where to invest;
- Check how the chosen country’s tax system will affect your pension. It’s important to understand what the tax systems are on Social Security checks and what costs are associated with either designation.
The financial aspect is to pay taxes.
Relates to the most important aspect of remittances abroad. Taxes to be paid. The interested party must confirm:
- If there are any Double taxation agreements between Italy and the country to which you intend to move.. Their presence or absence has a decisive effect on the taxes payable in respect of the year in which the residence was transferred abroad.
- You need to check if you need to pay. Capital gains tax on properties or assets located in Italy. In some cases there are taxes on capital gains accumulated abroad and expatriate taxes on assets or properties held outside their borders.
Also pay attention to the management of real estate properties that are left in Italy and that must be properly managed if not sold. In this case it is always a good idea to check what the country you have decided to move to provides.
