A posting on the Italy Magazine website indicated that Italy has just instituted a 20% withholding of funds being wired from outside Italy to banks in Italy. The presumption is that these funds may be from overseas investments that have thus far bypassed the Italian taxation system. Presumably, if the funds are not from earnings overseas, the monies withheld will be refunded upon documenting the exemption of these funds when doing Italian taxes. There may be a procedure to file for an exemption before the funds are withheld. This is very disturbing since I plan to buy an Italian home with funds to be transferred to an Italian bank. In my case these funds are not from overseas investments or wages. Italy also shares a tax treaty with the US so as to avoid double taxation. Nonetheless, this information puts a bitter taste in my mouth for La Dolce Vita. Does anyone have more information on this that will keep me motivated to pursue a home purchase in Italy?
