Monthly archive - October 2013

ITALIAN SUCCESSION TAXES

ITALIAN SUCCESSION TAXES

If you have Italian relatives, you could be the beneficiary of the inheritance. Inheritance claims involving Italian properties are currently subject to two taxes, i.e., Estate Tax and Property Transfer Tax.
Estate Tax
If the deceased was resident in Italy, Italian Inheritance Tax (Imposta sulle Successioni) is applied to all the assets worldwide belonging to the deceased. Otherwise in case of a non resident, the Italian Inheritance Tax rate is calculated on the assets located in Italy. The Estate Tax applies to the entire net value of the left estate, including movable and immovable assets. 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, money deposited in a bank account.
There are different rates which are applied to each heir according to the degree of kinship to the deceased, as follows:
- For spouses and children it is 4% of the estate value, with an allowance of EUR 1 million for each beneficiary.
- For siblings and close relatives (up to fourth degree of kinship) it is 6%. Each sibling is enttitled to an allowance of EUR 100,000.
- For any other subject it is 8%, without allowance.                                                               Property Transfer Tax
When one or more Italian properties are left, the succession is subject also to the property inheritance transfer taxes which are 3% of the property value on record.
The said taxes are the following:
1. Mortgage Tax (“Imposta Ipotecaria”) that is 2% of the property value on record or € 168 if the property will be the main house (“prima casa”) of the beneficiary.
2. Cadastral Tax (“Imposta Catastale”) that is 1% of the property value on record or € 168 if the property will be the main house (“prima casa”) of the beneficiary.
For further information about inheritance in Italy, please contact Annino Law Firm.   avv.annino@libero.it
Paola Isabella – Gianfranco Annino
Lawyers