Holding a bank account outside the EU could be about to get more complicated for residents of Italy, under new European banking rules being brought into Italian law.

Many foreigners living in Italy keep one or more accounts in their country of origin, often opened while they still lived there and kept on after the move. They can be essential for managing affairs back home, from taxes to property, and matter especially to pensioners, since some pensions cannot be paid into an account in another country.

What does the directive say?

The new rules apply to the banks, not directly to you or your account. Any non-EU bank or financial institution that provides “core banking services” to clients in an EU country will have to set up an authorised branch there, or work through a local subsidiary, to keep serving them. Core banking services are defined as taking deposits, lending, and providing guarantees.

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If your bank decides an Italian presence is not worth the trouble, it could drop its Italy-based clients rather than comply. You can read the full text of the EU directive here.

What does it mean for residents in Italy with an account in a non-EU country?

In practice, some residents of Italy with an account outside the EU may receive letters asking them to provide an address in the country where the account is held. Others may be told their bank will no longer keep their account open.

How is this different from the current rules?

The directive is a standardising measure, meant to give every EU country the same approach to non-EU banks, where until now each member state set its own rules. Italy already allows residents to hold a foreign account, provided it is declared to the tax authorities (more on that below).

Some banks already refuse accounts for customers who live abroad: after Brexit, some British nationals in Italy found their UK banks closed their accounts. The new directive appears to have pushed many banks outside the EU to review their policies on EU-based customers.

You still have to declare a foreign account to the Italian tax office

Whatever your bank decides, the Italian rules on declaring a foreign account have not changed. If you are resident in Italy for tax purposes, you have to report a foreign account in the quadro RW (the foreign-assets section) of your annual tax return if its balance topped €15,000 at any point during the year.

The tax agency (Agenzia delle Entrate) sets out the current rules here.

When does it come into force?

The directive was passed in 2024, and EU countries were given time to write it into national law. Italy brought it in at the end of December 2025, amending its banking code, with the main obligation taking effect on January 11th, 2027.

A “grandfathering” clause took effect on July 11th, 2026, which means contracts signed before that date are exempt from some parts of the new rules. The gap between that July date and the January 2027 start is why banks have begun writing to customers now.

Italy has gone further than the directive required in some respects, taking a stricter line on which banks the establishment requirement covers and how narrowly the exemptions apply.

Are there exemptions?

Yes, two matter for individuals.

The first is “reverse solicitation”: the rules do not apply where an EU client approached the non-EU bank entirely on their own initiative. The second is the grandfathering clause above, covering contracts signed before July 11th, 2026.

Between them, these should give non-EU banks room to keep serving clients in Italy. Some may still take a cautious view of the rules, or decide that serving EU clients is more trouble than it is worth, which may be why some people have already been told their accounts will close.

What are the alternatives?

For those whose banks are threatening to close their accounts, there are two main options: find a bank with branches in both your home country and in Italy, or use an online bank.

Online banks are a practical route for anyone managing money in more than one country. Providers such as Wise or Revolut offer accounts in several currencies and, importantly, give you both an EU account number and one in the UK, US or other non-EU country.

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Having both an EU and a non-EU account number satisfies authorities or pension providers that require a local account. The drawback is that these accounts do not offer everything a traditional bank does, and there is no branch to visit for anyone who prefers dealing with someone face to face.

Please note that The Local cannot provide advice on how banking or tax rules apply in your personal circumstances.