The Bank Account and the Source of Funds

A transfer is about to leave a bank in another country. The screen asks for a reference, and a house in the hills is waiting at the other end. Between the two sits a set of rules about how the money travels and what is written down about it.

Do I need an Italian bank account to buy a house?

What the law requires is that the price be paid by traceable means and that the deed describe how it was paid. A buyer may pay from an account abroad or from an Italian account, and both leave a trace. Running a property, with its utilities, property tax, staff and contractors, is also possible from either. Direct debits are usual for Italian utilities.

Opening an account is a separate matter. Each bank sets its own requirements and decides whether to open an account. Banks commonly ask for identity documents, the Italian tax code (codice fiscale) and information on the origin of the funds, and their criteria differ from bank to bank, change over time and are not published in a single source. The anti-money-laundering checks are applied case by case.

There is also a basic payment account, the conto di base. Banks, Poste Italiane and other providers must offer it to consumers who are legally resident in the EU, whatever their place of residence.^[1] It is not available to a person who already holds a payment account in Italy, nor for business use, and it may be refused on grounds of suspected illegal use.^[1] The right depends on the person’s right to reside in the EU.^[1] Whether such an account suits a property purchase is outside this article.

What does the deed have to say about payment?

At the transfer of a property, even one subject to VAT, the parties must make a sworn declaration giving an analytical indication of how the price was paid.^[2] Each party must also declare whether a mediator was used, with identifying data, the amount paid and how.^[2] An omitted, incomplete or false declaration is punished by a fine of €500 to €10,000, and the property is revalued for registration-tax purposes.^[3] The provision also requires the notary to report to the Agenzia delle Entrate, the Italian revenue agency, the absence of a mediator’s registration.^[3]

The statute behind this rule has been reorganised. The paragraph that contains the declaration has been abrogated by a legislative decree of 5 August 2026.^[4] Its consolidated text on tax compliance and assessment applies from 1 January 2027 and re-houses the same declarations in a new article.^[4] The paragraph with the fine, the revaluation and the notary’s report is still shown in force on Normattiva.^[5]

What does the notary check?

The notary is subject to the anti-money-laundering rules in transfers of real estate.^[6] Customer due diligence includes identification of the client and verification of identity, identification of the beneficial owner (titolare effettivo), including behind a company, obtaining information on the purpose and nature of the operation, and ongoing monitoring.^[6]

According to the technical rules of the National Council of Notaries, the verification of the origin of the funds is carried out according to risk, on the basis of the information the client provides and other reliable sources.^[7] Some categories, such as politically exposed persons, are subject to enhanced checks.^[6] In practice the notary can ask for documents showing where the money comes from, and how far that goes depends on the case. Banks apply their own checks under the same anti-money-laundering framework.

Can any part of the price be paid in cash?

Transfers of cash or bearer instruments between different persons for €5,000 or more are prohibited.^[8] The threshold has been €5,000 since 1 January 2023.^[8] The administrative fine is €3,000 to €50,000, with a minimum of €1,000 for violations from 1 January 2022, and it is multiplied by five for amounts above €250,000.^[9]

A payment for a property is therefore made by bank transfer, banker’s draft or other traceable means, and it is described in the deed.

What happens when the money comes from abroad?

Transfers from abroad, in euro or another currency, are subject to the checks of the sending bank and of the receiving bank. Funds sent from an account in a name other than the buyer’s, or through an intermediary, are more likely to prompt questions from the banks and the notary, because the declaration in the deed and the beneficial-owner checks are made on the parties’ names.

Whether a third party – a relative, a company or a trust – may pay is a question for the notary and the bank in the particular case.

What is escrow at the deed?

At the request of at least one party the notary must hold the price, or the balance, in a dedicated account and release it after registration and transcription of the deed.^[10] Where a charge, a mortgage for instance, must be cleared, part of the price can be applied to it by this means.^[10] See “Due Diligence: What Sinks a Purchase”.

In what order does it all happen?

A purchase usually proceeds in this order. The buyer obtains a codice fiscale. The preliminary contract is signed and registered, with any deposit. The buyer makes arrangements to pay. The deed is signed before the notary, with the declarations above. The price is paid, directly or through the notary’s escrow account.

Whether and when to open an Italian account, and whether to transfer funds ahead of an offer, are matters on which a buyer’s bank and adviser can comment. This article recommends nothing.