Fundamentals of Italian inheritance law
Italian inheritance law is based on the system of 'forced heirship' (legittima). This means you cannot freely dispose of your entire estate in a will — a specified portion must go to the closest family (spouse, children).
Which law applies?
Under EU Regulation 650/2012, the law of the country of the deceased's last habitual residence applies. However, you can choose the law of your nationality in your will. A Pole living in Italy can decide whether to apply Polish or Italian law.
Inheritance tax (Imposta di Successione)
Rates are low: 4% for spouse and children (tax-free allowance EUR 1 million per person), 6% for siblings (tax-free allowance EUR 100,000), 6% for more distant relatives, 8% for unrelated persons. Additionally, 2% mortgage tax and 1% cadastral tax.
How to secure your property?
Draw up a will (testamento) with an Italian notary. Consider a lifetime gift (donazione) — but beware of the 20-year contestability period. An alternative is a trust or family foundation, although these instruments are more expensive to administer.
Procedure after the owner's death
Heirs have 12 months to file a dichiarazione di successione with the Agenzia delle Entrate. Failure to do so results in financial penalties. It is worth updating the cadastral and mortgage registry entries immediately.