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Italian Inheritance Tax: what it is, how to calculate it and ho to submit an inheritance tax declaration

Italian Inheritance Tax: what it is 

The Italian inheritance tax is a tax due by a heir when receiving money or properties from the estate of a deceased person.

The amount of the inheritance tax can be calculated on the basis of the inheritance tax declaration, which has to be submitted to the Italian Revenue Agency.

Italian Inheritance Tax: How much is inheritance tax in Italy? 

Below you find the Italian inheritance rates and exemptions:

- 4% of the total value of the estate in case of transfers to a spouse or direct relatives, with exemption for shares of estate under 1 million euros;

- 6% of the total value of the estate in case of transfers to siblings, with exemption for shares of estate under 100.000 euros each;

- 6% in case of transfers to relatives until the fourth degree and to affines in the collateral line up to the third degree of kinship, without exemption;

- 8% for all other people, without exemption.

The Italian inheritance tax must be payed within 60 day of the receipt of the Revenue Agency's payment notice.

The Italian inheritance tax is calculated according to the content of the inheritance tax declaration.

After expiry of the 60 days period, if no payment has been made, additional penalty and interest charges are applied.

It is also worth noticing that the Italian inheritance tax, when amounting to more than € 1.000,00, can be paid through installment payments.

Italian Inheritance Tax: Inheritance tax declaration and persons liable to pay it 

The inheritance tax declaration must be submitted within 12 months of the death of a deceased (that is within 12 months of the succession) to the Italian Revenue Agency, and particularly to the office in whose area the deceased was resident, by one of the persons liable to pay it.

In case the deceased's last place of residence is unknown, the  inheritance tax declaration must be submitted to the Revenue Office in Rome (“residual” jurisdiction).

The following persons are obliged to submit an inheritance tax declaration:

- substitute heir and legatees;

- executors of the deceased's will;

- administrators of the estate and trustees;

- those entitled to temporary possession of the deceased's estate.

Conversely, in Italy a person who renounces a inheritance within the 12 months period is exempted from paying the inheritance tax.

In accordance with the territoriality principle, the inheritance tax must be paid depending on the country in which the deceased was resident. In other words, the payment of inheritance tax is linked to the properties and rights existing in Italy or abroad, in case the deceased was an Italian resident at the moment of his/her death.

In case the deceased was a non-Italian resident, only properties which are located in Italy can be taxed.

Italian Inheritance Tax: European Certificate of Succession 

National inheritance laws vary remarkably across the different European countries. For this reason, in case non-Italian persons are involved in a succession, it is very important to determine which law is applicable to the succession itself.

In matters of foreign persons' succession the Italian Law no. 218/1995 and the EuropeanRegulationUE no.650/2012 on succession and on the creation of a European Certificate of Succession (applicable to the succession of persons died on or after 17 August 2015) apply.

Aimed at harmonizing the different European inheritance regulations and taxes, theEuropean Certificate of Succession is a document evidencing the status of heir in every European Country.

TheEuropean Certificate of Succession is issued by the deceased's state of residence. The advantage is that it has the same effect in all European Countries, regardless of the country by which it was issued.

In Italy Notaries are competent to issue the European Certificate of Succession.

The authority by which the European Certificate of Succession was issued keeps the original, while giving the heir, the testamentary executor, or the estate administrator, certified copies which will e valid for 6 months and whose validity can be extended. 

If you need more information about how to accept an inheritance, click here.

Do you have any problems with Italian Inheritance Tax? We can help you. 

Arnone&Sicomo international law firm provides assistance to Italian and non-italian resident persons who have inherited properties or assets in Italy.

We assist our clients with obtaining the European Certificate of Succession and with filling in the declaration of succession in case the deceased was last resident in Italian territory.

We carry on all the paperwork for our foreign clients in order to allow them to take possession of an inheritance in Italy, wether assets on current account or real properties. We accept or waive inheritances on behalf of our clients by means of special powers of attorney.

Do you need assistance with issues related to the Italian succession procedure? Contact us, click here.