Looking for information about Italian Inheritance Tax?
If you’ve inherited money, property or other assets in Italy, or expect to in the future, you may be wondering whether you’ll have to pay Italian inheritance tax. The answer depends on several factors, including your relationship to the deceased, the value of the inheritance and where the assets are located.
The good news is that Italy’s inheritance tax rates are generally lower than those in many other countries. However, the legal process can still be complex, particularly if the estate includes Italian real estate or if the beneficiaries live abroad.
This article explains how Italian inheritance tax works in 2026, who pays it, how it is calculated and what foreign heirs need to know.
What Is Italian Inheritance Tax?
Italian inheritance tax (Imposta sulle Successioni) is a tax levied on assets transferred following a person’s death.
Unlike in some countries where the estate pays the tax before assets are distributed, in Italy the amount payable generally depends on each individual beneficiary and their relationship to the deceased.
Not every inheritance is taxable, and many close family members inherit without paying any inheritance tax at all because of generous tax-free allowances.
Who Pays Italian Inheritance Tax?
Whether inheritance tax is due depends on:
- your relationship to the deceased
- the value of the inheritance you receive
- the type of assets inherited
- whether the deceased was resident in Italy
- whether the inherited assets are located in Italy
Foreign nationals can inherit Italian property and other Italian assets. Being a non-Italian citizen does not, by itself, exempt someone from Italian inheritance tax.
Italian Inheritance Tax Rates (2026)
The amount of tax payable depends primarily on the beneficiary’s relationship to the deceased.
| Beneficiary | Tax-Free Allowance | Tax Rate Above the Allowance |
|---|---|---|
| Spouse | €1,000,000 | 4% |
| Child (each child) | €1,000,000 | 4% |
| Parent | €1,000,000 | 4% |
| Brother or sister | €100,000 | 6% |
| Other relatives (up to the fourth degree) | No general allowance | 6% |
| Unrelated beneficiary | No allowance | 8% |
These allowances apply per beneficiary, not to the estate as a whole. This distinction can significantly reduce or eliminate inheritance tax where an estate is divided among several heirs.
Real Life Examples
A Daughter Inherits an Apartment
Margaret, a British citizen, inherits her late father’s apartment in Tuscany valued at €450,000.
Because she is the deceased’s daughter, she benefits from a €1 million tax-free allowance.
Inheritance tax payable: €0
Although no inheritance tax is due, legal formalities, including filing the succession declaration and updating the property records, must still be completed.
Two Children Inherit a Villa
Giovanni leaves a villa in Puglia worth €1.8 million to his two children in equal shares.
Each child receives assets worth €900,000.
As each beneficiary’s share falls below the €1 million allowance, neither child pays Italian inheritance tax.
This often surprises families who assume tax is calculated on the estate’s total value rather than on each beneficiary’s individual share.
A Friend Inherits a Holiday Home
Peter leaves his holiday apartment on Lake Garda, worth €600,000, to a lifelong friend.
Because the beneficiary is unrelated to Peter, there is no tax-free allowance.
The inheritance is therefore subject to Italian inheritance tax at 8%.
This illustrates how the relationship between the deceased and the beneficiary can have a significant impact on the amount of tax payable.
What Assets Can Be Subject to Italian Inheritance Tax?
Depending on the circumstances, inheritance tax may apply to:
- residential property
- holiday homes
- land
- bank accounts
- shares and investments
- business interests
- valuable personal possessions
Where the deceased was tax resident in Italy, worldwide assets may also need to be considered, subject to applicable international tax treaties.
How Is Italian Inheritance Tax Calculated?
The process generally involves four steps:
| Step | What Happens |
|---|---|
| 1 | The estate is valued, including any Italian assets. |
| 2 | Each beneficiary’s entitlement is calculated. |
| 3 | The relevant tax-free allowance is applied. |
| 4 | The applicable inheritance tax rate is applied to the remaining taxable value. |
Because allowances apply individually, careful estate planning can sometimes reduce the overall tax burden.
Are There Other Taxes to Pay?
Even where no inheritance tax is due, beneficiaries inheriting Italian real estate may still have to pay other taxes and administrative charges.
These can include:
- cadastral tax
- mortgage tax
- registration-related charges
- notarial or legal fees
- Land Registry fees
The exact amount depends on the nature of the assets and the legal circumstances of the succession.
Do Foreign Beneficiaries Pay Italian Inheritance Tax?
Yes, they can.
Many people incorrectly believe that living outside Italy automatically exempts them from Italian inheritance tax.
In reality, Italian inheritance tax may still apply if:
- the deceased owned assets in Italy
- the deceased was tax resident in Italy
- Italian succession law applies to the estate
International estates often involve both Italian law and the laws of another country, making professional legal advice particularly important.
Common Misconceptions
“Italy has no inheritance tax.”
False.
Italy does levy inheritance tax, although the rates are relatively modest compared with some other jurisdictions.
“Foreigners don’t pay Italian inheritance tax.”
False.
Nationality is not the deciding factor.
Foreign beneficiaries may still have tax obligations relating to Italian assets.
“If no tax is due, nothing needs to be done.”
False.
Even where inheritance tax is not payable, legal procedures such as filing the succession declaration and transferring ownership of inherited property generally still need to be completed.
“The estate pays the tax.”
Not always.
In Italy, inheritance tax is generally assessed by reference to the individual beneficiary and the value of the assets they receive.
Practical Tips for Beneficiaries
If you inherit assets in Italy, it is sensible to:
- obtain professional legal advice before transferring or selling inherited property
- establish the value of the estate
- identify all Italian assets
- check whether any international tax treaty applies
- comply with filing deadlines
- ensure property ownership is correctly updated in the Italian Land Registry
Taking these steps early can help avoid unnecessary delays and complications.
Frequently Asked Questions
Do I pay Italian inheritance tax if I inherit a house in Italy?
Possibly. It depends on your relationship to the deceased, the value of your inheritance and whether your share exceeds the applicable tax-free allowance.
Is Italian inheritance tax higher than in the UK?
Italy’s inheritance tax rates are generally lower than those in the UK, particularly for close family members. However, comparing the two systems can be misleading because each country has different rules, exemptions and methods of calculating tax.
Can I sell inherited property immediately?
In many cases, yes, but only after the legal succession process has been completed and ownership has been properly transferred into your name.
Does Brexit affect inheritance tax in Italy?
No.
Brexit did not change Italy’s inheritance tax rules for UK nationals. However, cross-border estates involving UK and Italian assets may require careful legal and tax planning.
Can I avoid Italian inheritance tax?
There is no universal way to avoid inheritance tax, and any planning should always comply with Italian law. However, careful estate planning and understanding the available exemptions and allowances can help families manage their tax position effectively.
Why Professional Advice Matters
International successions often involve much more than calculating inheritance tax. Questions of applicable law, forced heirship rules, property transfers, probate, foreign wills and cross-border tax obligations can all arise.
What appears to be a straightforward inheritance may involve legal issues spanning two or more countries. Seeking legal advice early can help beneficiaries understand their rights, comply with Italian legal requirements and avoid costly mistakes.
Official Guidance from the Italian Government
Italian inheritance tax rules and succession procedures can change over time, and every estate has its own legal and tax considerations. If you would like to consult the official government guidance, the Italian Revenue Agency (Agenzia delle Entrate) provides information on inheritance declarations, forms, filing requirements and related procedures.
Need Help with an Italian Inheritance?
For more than 60 years, De Tullio Law Firm has been helping international families manage Italian succession law, inheritance tax, probate and cross-border estates. Whether you have inherited a holiday home, family property or other assets in Italy, our experienced lawyers can guide you through every stage of the succession process and help ensure your inheritance is transferred as efficiently as possible.
