Imposta di Successione (Inheritance Tax)

The tax on assets (including real estate) passing to heirs or beneficiaries upon death. Italy’s inheritance tax has different rates and exemptions depending on the relationship of the heir to the deceased. For close relatives (spouse, children), the rate is 4% on the portion exceeding €1,000,000 each. Siblings have 6% with a €100,000 exemption. More distant heirs have 6% (no exemption), and unrelated beneficiaries 8% (no exemption). In addition, cadastral and mortgage taxes of 2% + 1% apply on real estate value (with fixed €200 minimum each) at succession. Importantly, if the primary home is inherited by close relatives who then live there, they may get an exemption from these 2%+1% ancillary taxes. While Italian inheritance law has forced-heirship rules (reserving parts to certain heirs), the imposta di successione is relatively modest compared to some other countries. Nonetheless, a foreign owner should make a will aware of Italian succession law. The notary handling a succession will calculate and handle payment of this tax when transferring property to heirs.