Managing Your Finances as an Expat in Italy
Banking in Italy
Borderless Budget connects to major Italian banks including Intesa Sanpaolo, UniCredit, Banco BPM, and Fineco through secure bank connections, and your accounts in the US, Canada, the EU, the UK, Norway, Iceland and Liechtenstein connect too.
Major banks for expats
- Intesa Sanpaolo
- UniCredit
- Banco BPM
- Fineco
Cash vs. card culture
Cash remains the main payment instrument at physical points of sale in Italy, especially for small purchases up to €50, though its use has been falling steadily3. Cards are the main alternative in shops and the most used way to pay online3.
Cost of Living in Italy
| Category | Typical Cost |
|---|---|
| Rent | Price your budget from current listings in the city and neighbourhood you're moving to, not from a national average. |
| Groceries | Track your first two months of receipts and budget from those. |
| Transport | €2.20 for trips within Milan's Mi1-Mi3 zones over 90 minutes with a contactless card, capped at a €7.60 daily fare4 |
| Healthcare | The health card (tessera sanitaria) is issued to people entitled to the National Health Service and carries your tax identification number5 |
Before you settle on a budget, check rents and a few weeks of everyday spending in the city where you'll actually live, rather than relying on national averages.
Currency Considerations
If you earn or save in dollars, pounds or another currency, the exchange rate decides what your euro rent costs you each month. Seeing every account in one home currency shows the real trend instead of a guess.
Transferring money to Italy
- Compare the exchange rate and the fee together when you move money into euros. A transfer with no fee can still cost more if the rate is worse.
- Keep enough euros in your Italian account at the start of each month so rent never depends on that day's exchange rate.
- If you're paid in another currency, a fixed monthly transfer is easier to budget than converting whenever you remember.
- Keep a home-country account open for bills that stay behind, like a phone plan, insurance or a mortgage.
Borderless Budget tracks all of your accounts, your home-country bank, your Italian bank, and services like Wise or Revolut, in a single dashboard. Exchange rates update daily, so your budget always reflects where things actually stand.
Tax Considerations for Expats in Italy
- Italian residents are taxed on their total income wherever it's produced, while non-residents are taxed only on income produced in Italy6.
- Personal income tax (IRPEF) is 23% on income up to €28,000 and 43% above €50,000, and the 2026 budget law cut the middle rate from 35% to 33%6.
- The US taxes its citizens on worldwide income wherever they live, under generally the same rules as at home7.
- Budget from your net pay, not your gross salary, and check your payslip for every deduction before you set your monthly numbers.
Budgeting Tips for Expats in Italy
- Budget your Italian life in euros. Rent, groceries and transport are all in EUR, and converting each one back to your home currency adds noise, not clarity.
- Cash is still the main way to pay in Italian shops, especially for purchases up to €503. Give cash its own line so small spending doesn't disappear.
- In Milan, tap the same card for every trip so the daily fare cap4 applies. However many rides you take that day, transport stays a predictable line.
- Ask whether rent includes condominium fees (spese condominiali) and utilities before you sign, and add them to your housing line if not.
- Keep your home-country bills in their own currency so you can see what Italy actually costs you.
How Borderless Budget Works in Italy
Connect your Italian and home-country banks
Link your Intesa Sanpaolo, UniCredit, Banco BPM, or other Italian bank alongside your home-country bank. Transactions from all accounts sync automatically into one dashboard.
Budget in EUR and your home currency
Your budget is set in your home currency, and Borderless Budget automatically converts every transaction, whether it's in euro or your home currency. You can toggle any transaction to see the original currency amount. Exchange rates update daily, so your budget always reflects reality.
Automatic categorization
Transactions from Italian merchants are automatically categorized. Categorization improves as you use the app, learning your patterns across both currencies, so you spend less time sorting transactions and more time living your life in Italy.
See the impact of exchange rates
When exchange rates shift, your combined budget view updates automatically. You'll see exactly how currency movements affect your overall spending, no surprises, no guesswork.