Italian Inheritance Tax Costs Explained

Giambrone & Partners inheritance lawyers can assist you with regard to the correct inheritance tax that you should pay if you have inherited a property in Italy and the deceased was resident in Italy at the time of their death. 

In the event that the deceased lived in Italy at the time of their death, 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, on the assumption that the deceased died intestate (made no will).

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 on a variable scale depending on the beneficiaries proximity to the deceased and can  be summarised  by the following tax rates 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 any 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 children and one or more is disabled, 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 provided the asset passes to the children and they undertake to continue the business for at least five years.

If the deceased lived in a different country, there almost certainly be different rates of tax may be payable, depending on the country and Italy’s international agreements with the country in question.

Giambrone & Partners Italian succession lawyers can advise you in this respect.

Read more here Italian Succession - Your Questions Answered

For more information on how Giambrone's wills and probate team can assist you please click here