Inheritance Tax Declaration in Italy: Costs, Taxes, Exemptions

Understanding the inheritance tax declaration in Italy is crucial for heirs who inherit property, assets, or debts from a deceased relative. This guide explains the costs, taxes, and legal obligations involved in filing a dichiarazione di successione (inheritance declaration).

If you are a foreign heir inheriting assets in Italy, it's important to be aware of the required procedures and tax implications of inheritance in Italy.

What Is the Italian Inheritance Tax Declaration?

The inheritance tax declaration is a legal requirement for heirs who inherit real estate, financial assets, or liabilities in Italy. It must be filed with the Italian Revenue Agency (Agenzia delle Entrate) and includes all assets of the deceased, such as properties, bank accounts, and investments.

Even if the inheritance is not of high value, certain taxes and duties still apply, making it essential to understand the costs involved.

Who Needs to File an Inheritance Declaration in Italy?

If the deceased owned real estate in Italy, the heirs are legally required to file an inheritance tax declaration. However, if the inheritance consists only of bank accounts or savings, the declaration may not be necessary—banks typically require different documentation to release the funds.

Italian Inheritance Tax Rates and Exemptions

According to Italian inheritance tax laws (Decree Law No. 262/2006), inheritance tax applies only if the estate exceeds certain thresholds. Here are the current inheritance tax rates in Italy for 2025:

✅ 4% tax for direct heirs (spouse, children, and parents) on amounts exceeding €1,000,000 per beneficiary.
✅ 6% tax for siblings, but only on the amount exceeding €100,000.
✅ 6% tax for relatives up to the fourth degree and in-laws up to the third degree, with no exemption threshold.
✅ 8% tax for all other heirs, with no exemptions.

Additional Taxes on Italian Inheritance

Apart from the standard inheritance tax, heirs must also pay additional taxes when inheriting real estate in Italy:

• Mortgage tax (Imposta Ipotecaria)
• Cadastral tax (Imposta Catastale)
• Stamp duty (Imposta di Bollo)
• Special cadastral and mortgage fees

How to Calculate and Pay Inheritance Taxes in Italy

All taxes must be paid via direct debit from the heir's bank account when submitting the online inheritance declaration. Some taxes, such as mortgage and cadastral taxes, require self-assessment by the heir.

To determine the taxable value of a property:
🏠 Find the cadastral value from property records.
📈 Increase it by 5% (revaluation coefficient).
🔢 Multiply the result by 110 (for primary residences) or 120 (for other properties).

Can You Pay Italian Inheritance Taxes in Installments?

If the total inheritance tax exceeds €1,000, heirs can request installment payments:

• At least 20% of the tax must be paid immediately.
• If the tax is under €20,000, it can be paid in 8 quarterly installments.
• For taxes exceeding €20,000, heirs can spread payments over 12 quarterly installments.

⚠️ Important Update for 2025:
Starting from January 1, 2025, the Mortgage Registration Fee for inheritance declarations submitted via Form F24has increased from €35 to €65.

Do You Need Help With an Inheritance in Italy?

🔹 Are you a foreign heir struggling with Italian inheritance laws?
🔹 Do you need assistance with property transfer, inheritance tax calculations, or legal compliance?
🔹 Want to ensure a smooth and hassle-free succession process?

At Mangata Avvocati, we specialize in assisting international heirs with inheritance tax declarations, estate planning, and property transfers in Italy.

📞 Contact us today for expert legal assistance!
Visit our website or send us a message for a consultation.