If the deceased was resident in Italy, Italian Inheritance Tax (Imposta sulle Successioni) is applied to all the assets belonging to the deceased, including those worldwide. However, in case of a non resident, the Italian Inheritance Tax is calculated on the assets located solely in Italy. It would be advisable to immediately seek advice from specialized professionals, since Italy grants different international agreements, which prevent the double taxation of estates.
Different rates are applied to each heir according to the degree of kinship to the deceased. We can summarize the different rates in the following way:
Both rates and exemptions are calculated over the whole net value of the assets included in the deceased’s estate according to the current Italian inheritance tax regime. This amount is net of liabilities and all deductible expenses, such as debts of the deceased, medical and funeral expenses. The assets involved in the inheritance procedure are immovable properties, companies, shares/holdings, credits and money deposited in a bank account. Below is a summary of information concerning the current Italian inheritance tax regime:
Degree of kinship Exemption Rate to be applied over the exceeding quota
In any case of inheritance of real estate property, the payment of a 3% (or E 168 as above described) registration tax is required.
It is also important to be aware that Italy has signed double taxation agreements with several countries (among others, the United Kingdom and the United States). To safeguard rights and to ensure payment of the correct amount according to the Italian inheritance tax regime, it is highly advisable to obtain professional expertise in the field of cross border inheritance matters.
Please note, any statement made in this article is intended to be a general practical introductory explanation only and not advice. This firm accepts no liability or any responsibility for any statement made.