Inheritance tax in Italy

(inheritance tax in Italy to apply to all the inheritances opened after the 3rd October 2006)

The Law 24 November 2006 no. 286 has been reintroduced to our regulation of the inheritance tax that was abolished by the Law 18 October 2001 no. 383. The tax applies to the single inheritance as a title of heir or legatee and not to the whole inheritance. Now the aliquots and the exemptions of the inheritance tax are the following:

inheritance tax in Italy

N.B. : the income value of the real estate property is calculated on the cadastral annuity capitalized. The same aliquots as above-mentioned apply also for the deed of donation. The coefficients of reevaluation, in order to obtain the cadastral value, are the following:

-agricultural land: 112,50

-buildings: Cat. C/1 and E 42,84
Cat. A/10 and D 63,00
Cat. B 147,00
Other buildings 126,00

-habitable buildings first home and relative appurtenances 115,50

SUBJECTIVE EXEMPTIONS

Are subjectively excluded from the inheritance tax:

a) The transfers of ownership of the real estate property abroad of a person resident abroad;
b) The transfers in favour of the State, Regions, Provinces and Municipalities;
c) The transfers in favour of the public bodies, foundations, associations, without any necessity to show the use of the real estate property, having as exclusive purpose research, assistance, study, education, the education or other purposes of public utility; in favour of the ONLUS organizations, of the foundations in conformity with ex Law 461/1998 and of the institutes having religion or cults as the purpose;
d) The transfers are in favour of public bodies or of foundations or associations legally recognized, different from that indicated in sub c), if they have the above-mentioned purposes; in this case the institute must show within 5 years of acceptance of the inheritance or from the purchase of the legacy, to have used the real estate property or the rights received or the sum obtained by the their alienation in order to fulfill the purposes indicated by the testator. In the absence of this demonstration the tax must be paid with the legal interest from the date in which it should have been paid.

OBJECTIVE EXEMPTIONS

Are objectively excluded from the inheritance tax in Italy:

a) The titles of public debit, among them included the Ordinary Bonds of the Treasure, the Certificates of the Credit of the Treasure and the Multi-annual Bonds of the Treasure;
b) The other Titles of the State or equal, but also other real estate property or rights declared free of tax by the rule of law;
c) Family business or corporate sharing; the inheritance tax isn’t applied in the case of inheritance or legacy in favour of the descendants having companies in object or branches of them, corporate quotas and shares. In the case of corporations or cooperatives or mutual insurance having the office in Italy, the profit is due as far as the participations by which it acquires or integrates the control of the company, on condition that the beneficiaries continue the exercise of the enterprise’s activity and/or hold control of the same for a period not less than 5 years;
d) The indemnities of severance pay (art. 1751 c.c.) and other indemnities due for the own rights of the heir in force of obligatory social security insurances or stipulated by the deceased;
e) Cultural heritages submitted to the cultural bond predicted by the laws in question, previously to the opening of the succession and the consequent obligations of conservation and protection which were absolved;
f) Claims from the State, local governments and public bodies that manage obligatory forms of welfare service and social assistance, including those for the refund of tax and contributions, until they are approved as existing by order, or declaration from the Administration responsible for payment;
g) The credits judicially contested at the date of the opening of the succession, until their existence is proven will be not recognized within judicial acts or transactions;
h) The claims given from the State within the date of the presentation of the declaration of the succession;
i) The vehicles registered in the public auto register, that are subjected to a separate taxation.

Please note, any statement made in this article is intended to be a general practical introductory explanation only and not formal legal advice. This firm accepts no liability or any responsibility for any statement made.

Contact us today. We can help.

See other articles >>