We have booked with an agriturismo recommended in Rick Steves' Hill "Towns of Central Italy". The host has asked if we can pay with cash. We do not want to travel with over $2,000 US to exchange in Italy to Euros. She wishes to avoid any bank fees either through a credit card or wire transfer. Has anyone encountered this situation? Any recommendations?
Posted by
🏝️ Hobe Sound, FL⛱️
3483 posts
Simplest thing would be to make periodic withdrawals from ATMs in Italy. Check with your bank(s) to see what the daily limit on withdrawals is and plan accordingly.
Posted by
Belgium
325 posts
Yes, quite normal in Italy (southern part).
Use ATM's, or even better, ask the host if you can pay using Paypal.
Posted by
Orlando FL
257 posts
We had the same thing and yes it is nerve wracking walking around with that much cash. My husband and I hit up different atms over about two days. I made my husband carry it in a money belt. I couldn’t wait to pay them when we arrived. They were surprised we wanted to pay when we got there but I was so sick of having that much cash on us. I was happy we got the money out in larger towns before we headed to our agriturismo as the smaller towns only had one or two atms and I think it would have been harder.
Posted by
Vignola, Modena, Italy
642 posts
In Italy cannot be refused payment by credit/debit card by everybody (shop, restaurant, hotel, agriturismo). So you can simply tell them that you feel uncomfortable to bring cash and that you have only the credit card.
99% is a way to avoid to pay taxes (black market), because the bank fee is not so high (except American Express) to be a reason for asking cash. Is saving taxes who makes the BIG difference.
Posted by
OP
2 posts
Thank you to all for these suggestions. I feel better equipped to handle the situation. We'll be able to get it done!
Posted by
San Francisco Bay Area (USA)
17583 posts
It’s all about tax dodging, as Ricky wrote, not the credit card commission fee paid by the host, which is probably no more than 2 or 3%.
If it weren’t because of the tax fraud the host wants to perpetrate s/he would have accepted a bank wire transfer (“bonifico bancario” in Italian) to his/her bank account, which would have cost you a little bit to you (for under $5,000 Chase charges me $5 for overseas transfers) but it would have been free to the recipient if you made the transaction denominated in Euro from your side.
By being paid in untraceable cash transactions (similarly to a drug dealer) s/he saves 10% in Value Added Tax plus the tax on the rental income (which would go unreported in such untraceable transaction) which will vary depending on the type of tax regime chosen and if the owner is registered as a business or individual with occasional rentals (but less than 3 properties), but it would be a minimum of 15% and possibly 23% to 43% for high income earners. So, tell the host that you are willing to pay cash, if s/he gives you at least 25% discount.