Euros to pay for a villa
 

I have rented a villa in Italy and have sent a deposit. When I arrive, the owner has suggested that I go to an ATM to pay him the remainder of the rent. However, it is several thousand dollars, and I don't think that an ATM will allow that much currency. Wells Fargo suggested that I get the Euros from them here, and pay him that way. Does anyone else have a suggestion? Thanks for your replys.

Given that Italian citizens are forbidden to pay more than E500 in anything other than a credit or debit card transaction you should be a bit worried. Not that you are taking part in an illegal activity but that the individual may be doing so with others.

You also have to think do you want to to be walking about the streets of a strange town with so much money in cash in your pocket. Let me pray this is not Napoli for example.

I'd pay him by bank transfer like everyone else does in a civilised country.

Do you HAVE to pay the rent in cash? Or that was just what "the owner has SUGGESTED"?

You would definitely have to go to an ATM more than one time to get that much cash. Your home bank has a limit set. And some machines have their own limit as well.

If you choose to get euro from your home bank and carry them over, definitely use a money belt or some kind of security system under your clothing.

"I'd pay him by bank transfer like everyone else does in a civilised country."

Just to be clear, it is how I pay for my holidays in Italy :-)

I agree with Bilbo. If the villa owner is willing to skirt this law, who knows how many other pesky regulations, many of which affect your safety, he's willing to skirt?

It's common for places to want cash in Italy (legal or not). Depending on your ATM daily limit and the conversion that day, will determine how much you can withdraw. If there are others in your group, they can also use their ATM cards (or your spouse). The ATM machine will have limits (maybe a max of 500€, but depends on machine and where). If that isn't your personal limit, you can just enter your card again and withdraw more up to your limit. Do notify your bank in advance or they may think your card is stolen and freeze your account.

Honestly I think it would be easier (and more certain) to carry the cash. Assuming you're two people traveling together, split it and carry 500 each.

I always get enough euros from Wells Fargo to pay for my apartment or villa rental, plus another 100, before I leave. I then divide the money between me and my traveling partner.

Once I pay the villa owner, I then have enough euro to tide me over until I can get to an ATM. I then withdraw euros from an ATM for the remainder of the trip.

Many thanks for all of your replies.

>> split it and carry 500 each.<<

Did you miss the part about "several thousand dollars"? I wouldn't carry that much cash.

I wouldn't carry that much cash, either. Nor would I pay Wells Fargo rates to get that much in euros ahead of time. I would offer a wire transfer, or PayPal, or mail a foreign draft, or call off the deal.

Well, the maximum allowed amount in cash is not 500 euros but 999,99. And , the rule does not apply to people selling things or services to non residents (for non residents, the limit is 15000 euros, but you still have to declare cash over 10000 euros entering Italy).

We paid in cash for the apartment we rented in Rome, on the day of arrival. Yes, we got Euros at the bank in US (for a fee).
I'm not sure what is your main concern...paying the fee to Wells Fargo? Carrying the Euros on the flight? The legality of the transaction?

<Did you miss the part about "several thousand dollars"?>

Well yes, actually I did. I read it as a thousand dollars.

<i>Wells Fargo suggested that I get the Euros from them here, and pay him that way.</i>

Is this a conflict of interest or what?
Wells Fargo would make ~8% commission on several thousand dollars out of this deal...at your expense.

Asps, rentals of apartments by private persons to foreigners is not exempt from the €1000 limit. Here is a legal advice column that answers this very question:

http://www.fiscoetasse.com/domande-e...1000-euro.html

In addition, it's not a simple matter of deciding that you can operate on a cash basis. The foreigner can't be an EU citizen or a citizen of the European Economic area, and can't be resident in Italy (even if the citizenship requirement is met). There's also a very specific procedure that has to be followed to execute a cash transaction that's over the limit. The seller has to get a photocopy of the buyer's passport. The buyer has to sign a form averring that he is not a citizen of any of the countries in the European Economic area, nor resident in Italy.

http://www.agenziaentrate.gov.it/wps...e+uso+contante

Whether the limit is €500 or €1000, this payment would be over the limit, and the owner of the villa, unless the owner is a travel agency or a hotel, doesn't fall in any of the categories exempt from the law.

This is a common practice in Italy and the owner is trying to avoid paying tax on the rental income.

You don't say when your trip is, but if time allows, I'd contact the owner, tell him the ATM thing won't work purely on volume and tell him you'll pay by transfer. That will still cost, but it's a lot safer than carrying lots of money around.

It's unlikely he'll object, at least not to you, but he should accept the balance using the same method by which you sent the deposit.

Yes, it's pretty common. I've paid cash for a flat in Rome. The Italians are great tax dodgers. We used a boatman on Lake Garda who would issue a ticket with 2 written on it. I assume that the taxman is told that he's issued one ticket

Common does not make it acceptable. {sees image of child sticking head out of a train window having head smashed off} Would you trust someone who is a criminal in one part of their life to be honest in the others? Given the power of the Financial Police in Italy I will continue to push for wire transfer and I would not be surprised if hte guy let me done on other things.

Think Berlasconi

>>We used a boatman on Lake Garda who would issue a ticket with 2 written on it. I assume that the taxman is told that he's issued one ticket<<

Purely your prejudicial assumption. You have no evidence of your accusation.

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