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LIVING IN ITALY

Banking giant Barclays to close accounts of Brits living in Italy

UK nationals living in Italy have begun to receive letters from their bank telling them that their accounts will be closed, in an apparent post-Brexit change.

Banking giant Barclays to close accounts of Brits living in Italy
A branch of Barclays Bank in London. Barclays has written to customers resident in the EU to inform them it will be closing their accounts. File photo: Peter Nicholls/Reuters/Ritzau Scanpix

Customers of Barclays Bank who are living in Italy have received letters telling them their UK accounts will be closed by the end of the year. 

There does not appear to be an option to register for a different account.

Several readers of The Local have reported receiving letters or messages via online banking telling them that their accounts would be closed because of their residency status.

A Barclays spokesperson told The Local:As a ring fenced bank, our Barclays UK products are designed for customers within the UK.

“We will no longer be offering services to personal current account or savings customers (excluding ISAs) within the European Economic Area. We are contacting impacted customers to give them advance notice of this decision and outline the next steps they need to take.”  

Customers are being given six months to make alternative arrangements. The changes affect all personal current accounts or savings accounts, but do not affect ISAs, loans or mortgages.

Photo by Tolga Akmen / AFP

During the Brexit transition period Barclays closed Barclaycard accounts of customers in Europe, but did not indicate any changes to standard bank accounts.

Around the same time several other British high street banks began closing accounts of British customers who live in the EU, although with the exception of Barclaycard customers in Italy were largely spared.

READ ALSO: Is new court ruling the end for Britons fighting to remain EU citizens?

The majority of UK nationals who live in Italy maintain at least one UK bank account – in addition to an Italian account – sometimes just for savings but others use their accounts regularly to receive income such as pensions, income from rental property, or salaries if they work remotely.

Not having a UK bank account can make financial transactions in the UK more complicated or incur extra banking fees.

Since Brexit, the UK banking sector no longer has access to the ‘passporting’ system which allows banks to operate in multiple EU countries without having to apply for a separate banking licence for each country.

And it seems that many UK high street banks are deciding that the extra paperwork is not worth the hassle and are withdrawing completely from certain EU markets. 

When British banks began withdrawing services from customers in the EU back in 2020, a UK government spokesman told British newspaper The Times that “the provision of banking services is a commercial decision for firms based on a number of factors” so Brits in Italy probably shouldn’t hold their breath for any help from that direction.

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ITALY EXPLAINED

The 7 signs that August has arrived in Italy

While summer holidays are important everywhere, Italy takes the tradition of le vacanze estive particularly seriously. Here's what to expect now that August has arrived.

The 7 signs that August has arrived in Italy

1. Cities are largely deserted

If you’re in a city or town, prepare for it to feel strangely empty away from the obvious tourist destinations.

In Rome, car journeys that once involved a half-hour battle through wild traffic become surprisingly quick and stress-free. And where are the crowds at your usual after-work drinks spot in Milan? Even the smallest towns will be noticeably quieter than usual.

READ ALSO: Ferragosto: Why the long August holidays are untouchable for Italians

This is because all sensible Italian residents have packed up and gone to the beach or the mountains for a month. Next year, you’ll know to do the same.

2. But beaches are packed

Italy was a nation of staycationers even before the pandemic, and in August it’s tutti al mare: everyone flees to the beach, or maybe the mountains, at the same time.

Expect resorts to be packed and hotels, Airbnbs and campsites to be fully booked, especially as international tourists return after two years of travel restrictions.

3. Shops have cheery ‘closed for holidays’ signs

Shop workers and owners take time off like everyone else and it’s very common for small independent businesses like bakeries, pharmacies and florists to close for up to a month.

Some will tell you when they expect to reopen, others just put a sign in the window saying ‘chiuso per ferie’ – closed for holidays.

4. The summer sales are (still) on

Those shops that do remain open – mainly large chain stores and supermarkets –  offer discounts throughout August to those dedicated shoppers who aren’t at the beach. Italy only allows two retail sales a year, and one of those runs through July and August.

5. Everyone you email is out of the office

Need to contact anyone urgently at work this month? If they’re in Italy, then too bad.

Office workers are also usually on holiday, and a great many offices close altogether for three or four weeks.

Forget about out-of-office email replies suggesting an alternative contact or that the person will be checking their email sporadically – they will be on the beach and whatever you want can wait until they are back.

This applies to banks and to any kind of government bureaucracy, and you may also have trouble getting medical appointments at this time of year.

There’s only one place to be in Italy in August, as far as many Italians are concerned. Photo by Giovanni ISOLINO / AFP

6. There are ‘red alert’ heat warnings in place

This summer has been an unusually hot one and Italy has already experienced several extreme heatwaves. But as we get into August temperatures will no doubt be high across the board, meaning the country’s health authorities put heat warnings in place on the hottest days and strongly advise people to stay out of the sun during the hottest hours of the afternoon.

7. Every major road has a traffic warning

Italy’s state police make good use of the red pen when putting together the official traffic forecast for August. All weekends feature ‘red dot’ traffic warnings as people head off on holiday, or return home.

The final weekend of August, when people head home in time for il rientro (the return to school and work in September) is also best avoided.

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