Avoid being overtaxed on your Italian property sale
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If the deceased lived in Italy, then Italian Inheritance Tax (Imposta sulle Successioni) applies to the deceased’s worldwide assets. If the deceased lived outside of Italy but had assets in Italy then Italian Inheritance tax would be payable only on those assets located in Italy.
There is a requirement by Italian law to file an Italian inheritance tax return (Dichiarazione di Successione) within one year of death, otherwise penalties will need to be paid.
Italian Inheritance Tax (Imposta sulle Successioni e Donazioni) is paid depending on who the entitled beneficiaries are and can be summarised as follows:
- 4% If beneficiaries are the deceased's spouse or children, with no tax payable up to €1,000,000 each.
- 6% If beneficiaries are brothers or sisters, with no tax payable up to €100,000 each and to other relatives of the deceased up to the fourth degree but without any tax free amount.
- 8% If beneficiaries are unrelated parties, with no tax free allowance. However if beneficiaries are one or more disabled children, the tax free amount is up to to €1,500,000.
- Other If a business or large shareholding in a company is inherited then no tax will be paid if these pass to the children and they continue the business for at least five years.
If the deceased lived in a different country, different taxes may be payable depending on the country and Italy’s international agreements with it. Giambrone’s Italian succession lawyers will advise you on this.
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