Private Banking in Italy for New Residents: How to Structure Your Assets Onshore and Offshore

When you move to Italy as a high-net-worth individual, your banking and wealth management strategy becomes just as important as your tax planning, immigration process and real estate decisions. Italy is a country where lifestyle drives many choices, but when it comes to wealth, structure and precision are essential. Becoming resident means entering a new regulatory environment, dealing with euro-denominated cash flow and coordinating private banking relationships across several jurisdictions.

For families arriving from Switzerland, the UK, the US, Monaco, Dubai or Singapore, the question is rarely whether to choose onshore or offshore banking. The real question is how to design an architecture that respects Italy’s rules, preserves global flexibility and supports a long-term family strategy. This article explores how new residents can build a banking set-up that is resilient, compliant and aligned with their broader objectives.

Understanding what “private banking in Italy” really means

Private banking in Italy operates differently from traditional private banking hubs such as Zurich, Geneva, London or Luxembourg. The focus is more on advisory relationships, wealth planning and custody of Italian assets, rather than on complex cross-border structures or sophisticated leverage solutions. Italian banks are comfortable managing portfolios for resident clients and assisting with reporting to the Italian tax authorities, but they may be less flexible with multi-jurisdictional structures or very international asset allocations.

This is why most HNWIs arriving in Italy maintain a dual-banking approach: an Italian banking presence for daily life and administrative purposes, and one or more foreign institutions for wealth preservation, asset diversification and the continuation of pre-existing investment strategies. The goal is not to replace one system with another, but to integrate them.

The role of Italian banks in a global wealth architecture

Opening an Italian bank account is often the first practical step of your relocation. It serves multiple purposes: receiving local invoices, paying taxes, managing household expenses and simplifying interactions with schools, clubs and family services. It also ensures compliance, since Italy expects residents to hold at least some financial presence within the country.

However, for significant wealth management, most international families prefer to keep the core of their capital in foreign private banks. This allows them to avoid unnecessary currency exposure, maintain access to international opportunities and preserve continuity with trusted advisors. Italian banking then complements this structure by managing liquidity needs, facilitating bureaucratic procedures and providing a local interface for regulatory matters.

The interplay between onshore and offshore is delicate but extremely powerful when designed well.

Maintaining foreign banking relationships while becoming Italian resident

Contrary to common belief, becoming tax resident in Italy does not require you to close foreign accounts or abandon relationships with Swiss, UK, US or other private banks. In fact, many Italian residents — including entrepreneurs, executives, creators and retired expats — continue to manage significant portfolios abroad. What Italy requires is transparency.

All foreign financial assets must be reported annually through the RW form, including cash accounts, portfolios, deposits, funds, life insurance and foreign-held companies. Wealth taxes (IVAFE on financial assets and IVIE on real estate) may apply depending on your profile and on whether you fall under a special Italian regime.

Maintaining foreign banking relationships is therefore not only possible, but often advisable for diversification, currency management and access to international products. The key is ensuring that your private bankers understand the Italian framework and can support you with the documentation, statements and reporting you will need each year. A proactive conversation with them months before you move makes the transition faster, smoother and fully compliant.

Managing currency exposure in a euro-based lifestyle

One of the most underestimated aspects of moving to Italy is the transition to a euro-centric cash flow model. Even if your wealth is predominantly in USD, GBP, CHF or other currencies, your daily life — property taxes, restaurant bills, school fees, club memberships, home staff, renovations — will be denominated in euro.

This creates a natural question: how much should you convert before arriving, and how much should remain in other currencies?

There is no universal rule, but three considerations matter. First, you want enough euro liquidity in Italy to make your first year seamless, covering both predictable and unforeseen expenses. Second, you should maintain diversified currency reserves abroad, especially if your wealth is tied to financial markets denominated in non-euro currencies. Third, you need to coordinate the timing of cash movements with your tax advisers to avoid unintended consequences, particularly if you are realising gains or restructuring assets before your arrival.

Balancing these elements is part of a broader wealth transition strategy, not a simple conversion exercise.

Portfolio structure under Italian tax rules

Once you become Italian tax resident (unless you fall under specific regimes that exempt foreign income), your worldwide income and gains may be subject to Italian taxation. This includes interest, dividends, capital gains, bond coupons, rental income from foreign property and other financial flows from abroad.

For this reason, your asset allocation may need adjustments before or shortly after your move. Some investment products are treated differently under Italian rules than in the UK, the US or Switzerland. Certain offshore funds may trigger unfavourable tax outcomes; some structured products may lose their efficiency; and derivatives or complex strategies may require detailed reporting that few banks handle smoothly.

This is why many families simplify their portfolios during the pre-immigration phase, moving toward clean, transparent investment strategies that align with Italian taxation. A well-prepared combination of onshore and offshore portfolios, each with a defined purpose, eliminates unnecessary friction and reduces the risk of surprises later.

Using life insurance and other wrappers effectively

Foreign life insurance policies (such as Luxembourg, Irish or Swiss life wrappers) are often used by international families. Under Italian rules, they can offer strong advantages if they qualify as genuine insurance products rather than simple investment structures.

These policies can allow efficient deferral of taxation, diversification of assets and smoother succession planning. But Italy has very specific criteria for determining whether a policy is valid from a tax standpoint. If the policy was structured abroad without considering Italy, a pre-immigration review is essential. Adjustments to the contract or the underlying investment strategy may be needed before you become resident.

When designed correctly, life insurance can be one of the most elegant bridges between your offshore wealth and your new Italian life.

Lending, mortgages and leverage strategies

If you are buying property in Italy or financing investments, you will discover that leverage in Italy works differently than in Switzerland or the UK. Italian banks tend to be more conservative, while foreign private banks may still provide credit secured against portfolios or properties — even if you are resident in Italy.

The question is not only where to borrow, but how to coordinate debts and assets in a way that fits your overall structure. Some clients use Swiss lines of credit to fund Italian real estate purchases, while others leverage Italian banking for local needs while keeping liquidity abroad. The right choice depends on your currency exposure, risk appetite, lending conditions and personal objectives.

A coordinated banking architecture allows you to use leverage efficiently without disrupting the flow between your onshore and offshore assets.

Building a unified wealth strategy across jurisdictions

The ideal outcome for an HNWI relocating to Italy is not fragmentation — an Italian account here, a Swiss portfolio there, a UK pension somewhere else — but unity. Your banking structure should function as a single ecosystem in which each jurisdiction plays a specific role.

Italy provides the base: your home, your administrative centre and the anchor for your lifestyle. Switzerland, the UK or other financial hubs continue to serve as engines for investment performance, diversification and long-term planning. Your advisors, in Italy and abroad, collaborate rather than operate in isolation. Documents and reporting are coordinated. Cash flow is smooth. Compliance is predictable.

This is what makes life in Italy not only pleasant but sustainable for wealthy international families.

Turn your move into an advantage, not a constraint

Relocating to Italy is an extraordinary opportunity to redesign your wealth architecture with clarity and purpose. With the right mix of local and international banking relationships, coordinated advice and thoughtful planning, your financial life can become simpler, more resilient and perfectly aligned with your new chapter.

If you are preparing to move to Italy or have recently become resident, we are here to support you. You can write to info@knotted.ch or contact us on WhatsApp at +41 76 771 30 22 for a confidential conversation.