Best way to transfer funds from US to Italy

For the time being, I see no reason to rush. You can access your money from Italy with an ATM card. Once you are there, you can talk to an Italian bank, work out the logistics with them. You will probably want an Italian checking account to write checks to pay bills and deposit funds from work (assume you will be working). You will also want an Italian credit card.

Don't forget the Bank Secrecy Act of 1970. "A 1970 anti-money-laundering law known as the Bank Secrecy Act spells out the rules for large cash withdrawals. In general, banks must report any transaction involving at least $10,000 in cash." To keep the government from knowing simply move less than $10k per action. This is a somewhat goofy law as the $10k limit hasn't change in 45 years so the inflation adjusted amount now is about $1700. The limit would be considerably higher today if Congress would adjust it.

I really don't have any banking knowledge but I was wondering if money systems like PayPal could come in handy for you. Can you create an account attached to your Italian bank and then transfer the money from yourself to yourself?
A year in Italy = a dream come true!

arent there banks in the US that have either branches in Italy or affiliated banks that you could open accounts with? then the transfers should be easy, especially if you are concerned about having access to US generated funds.

Roberto has funds in Italy I think. Scroll down till you find him and PM him.

If you are coming back in a year, then with the exchange rate as it is, I'd not transfer any large amounts at all. Just use the ATM.

The ATM is great for walking around money, but not so great for paying monthly rent, utilities, etc.

Pay Pal takes a percentage of any transaction and the exchange rate is not great.

My initial transfer was through BoA when the Euro was at 1.08 to the Dollar. BoA gave me an exchange rate of 1.24. Pretty hefty profit for them. Plus a $45 transfer fee.

I have used TravelWise.com twice now to pay deposit and two months rent (and yes, separated into transactions under $3,000 each which is a real pain, but trying to do a really large transfer gets into a whole lot of red tape). It still takes 5 business days (Italy does not seem to honor giving funds to the recipient upon receipt, and if you use a debit card in the states to transfer the money, it takes an additional 5 business days).

HSBC requires a hefty minimum balance for their "hassle free" banking ($100,000). However, they honor the no transaction fee for ATM withdrawals, excellent exchange rate, and both checks, a Debit and a Credit card which can be tied for "points." This is probably the best option for me personally -- I was just hoping to find someone who has "been there and done that".

Since I'm not staying in hotels very often, the need to be able to pay directly for apartments and private homes is important. The times that I'm staying in hotels, the exchange rate offered by American Express on each transaction (no transaction fee) is outstanding. Same for meals, trains, and consumer goods purchased where credit cards are accepted.

So if anyone has "been there and done that" I would sure appreciate hearing from you.

I've yet to find any sort of travel guide for people going on long term stays in the Schengen countries.

Thanks!
Catherine

Just a year, I would leave my account here at my US bank. And use my Credit card and Debit card, and pay bills in Euro cash.

My bank tells me that it has a huge International business with customers who move and live permanently outside the US, but leave their accounts at their US bank.

Besides losing money in the back and forth conversion, there is that reporting requirement for withdrawals at or near $10,000. And it's Illegal to avoid that limit by structuring withdrawals. Your bank will still report structured withdrawals, and avoidance behavior smacks of Fraud nowadays.

Also, it's the law now that Italy has to report your new account to the US government, if it's $10,000. Again, it's illegal to avoid this reporting by setting up small accounts at different banks. The Italian banks send information on the new customer to a central office in Italy where the accounts are added up for the total balance and then reported to the US.

Not illegal to transport more than a $10,000 USD to/from the US:
https://help.cbp.gov/app/answers/detail/a_id/195/kw/carrying%20cash%20in%20excess%20$10,000/session/L3RpbWUvMTQzMzYzNjYxMi9zaWQvT0E1Mmdmb20%3D/suggested/1

There is no limit on the amount of money that can be taken out of or
brought into the United States. However, if a person or persons
traveling together and filing a joint declaration (CBP Form 6059-B)
have $10,000 or more in currency or negotiable monetary instruments,
they must fill out a "Report of International Transportation of
Currency and Monetary Instruments".

The limit for transporting funds between EU countries is 10,000€. You can transport more but must declare:
http://ec.europa.eu/taxation_customs/customs/customs_controls/cash_controls/index_en.htm

It's easy to wire transfer funds to international accounts. Its hard to bring out the fees and exchange rates. See:
http://www.consumerreports.org/cro/2012/03/the-best-ways-to-send-money-abroad/index.htm

Given the large number of providers and variations on money-transfer
services, each with its own complex combination of charges and sending
methods, we weren't able to identify one service that will prove to be
the best deal in all circumstances. Still, we developed the following
guidelines to help you determine which service might offer the best
deal for your particular transaction.

You can open a checking account in Italy even if you are not a resident. Not all Italian banks will do it for American persons, as defined by the IRS, because of the FTACA, but some will. There is a bunch of paperwork to sign because Italians love bureaucracy, but you can. Once you have an Italian account, you can wire money online between your U.S. Account and your Italian account. Interbank transfers within the SEU, the Eu system is cheap, Generally when I transfer money within Europe it's under 50 cents, or even free with some online banks. Moving fund between EU and the U.S. Is more expensive. There is a flat fee plus a percentage of transaction fee. Then the receiving bank charges something too. Transferring about $25000 costs me over $40 in various bank fees.
If you open a foreign bank account don't forget to file an IRS form 8938 with your tax return and a FBAR FinCEN 114 form with the Dept of Treasury by June 30. All you need is name and address of the institution and maximum balance during the previous calendar year. Sanctions for not doing so are heavy and Uncle Sam's invisible hand stretches very far.

"I've yet to find any sort of travel guide for people going on long term stays in the Schengen countries."

There are many resources for ex-pats, which will have much more helpful information for your situation. A quick Google found these:

http://www.transitionsabroad.com/listings/living/living_abroad/living_in_italy.shtml

http://www.internations.org/italy-expats/guide

http://www.expatsblog.com/blogs/italy

Edgar, you wrote "The limit for transporting funds between EU countries is 10,000€. You can transport more but must declare"
Not true, there is no limit for carrying cash between EU countries. The EU is a customs and economic union, there can be no restrictions by definition.
The €10,000 limit applies for carrying cash into or out of the EU. That is what the link you posted actually says: http://ec.europa.eu/taxation_customs/customs/customs_controls/cash_controls/index_en.htm

However I would feel uncomfortable carrying anything approaching €10,000 on my person.

Thank you very much for the links to the ExPat information -- I had one of them, but not the other.

And I agree, I don't intend to carry around a lot of cash .... I was just seeking any advice on wiring from US to Italy. TransferWise seems to be the best solution until I have actually moved and have a bank account in Italy.

I'm in the final stages of "shutting down" my life in Texas. It is a lot more work than I expected. I seemed to have accumulated way too much "stuff" over the last 59 1/2 years.

Thanks!
Catherine