Donazione (Donation/Gift Deed)

A transfer of property made as a gift – i.e. without payment – formalized by a notarial deed. Donazione requires, by law, the presence of two witnesses and is revocable only in limited circumstances (ingratitude or the birth of children unknown at the time of donation). Real estate donations are common within families (e.g. parents gifting a house to a child). However, they carry a risk: under Italian inheritance law, forced heirs could later challenge a donation if it violated their reserved share. Thus, donee may have difficulty selling the property, as buyers and banks often fear potential heir claims. If considering purchasing a property that arrived by donation, extra due diligence is needed (such as obtaining heirs’ renunciations). Gift deeds incur gift tax, which for close relatives can be zero or low up to certain values.