Italian Inheritance Succession
Are you a foreign citizen called to inherit in Italy? You’re in the right place. In this brief guide, we’ll explain how inheritance succession is regulated in Italy and what steps to take to accept or refuse it.
What is succession?
Succession “by reason of death” is a legal event that allows one or more persons to succeed to the ownership of the estate (or certain property rights) of the previous owner, called the “de cuius,” due to their death.
How does succession work in Italy and when is it opened?
The moment of opening is simultaneous with the death of the estate’s owner subject to succession. The next phase is called “delazione dell’eredità” (inheritance reporting), during which the beneficiaries are identified, and the estate is distributed among them as determined. In the final phase, each beneficiary has the right to accept the inheritance (outright or with inventory benefit) or renounce it.
How are beneficiaries determined?
There are two ways:
- If the deceased did not leave a valid will, the “legitimate” or “necessary” succession regulated in Article 555 of the Italian civil code applies. Italian law directly identifies heirs in a specific order starting with the closest relatives (spouse, legitimate or natural children, descendants/nephews). If there are no children or descendants, ascendants (parents, grandparents, great-grandparents) and siblings with the spouse share. In the absence of these, collateral relatives up to the sixth degree succeed, and finally, the State.
- If a will exists, the “testamentary” succession is followed.
Who are the legatees?
In addition to the individuals described, there may be subjects designated as recipients (by law or will) of certain rights or assets of the deceased; these are called “particular title” successors.
How is the inheritance accepted in Italy?
The heir has two ways to accept:
- Purely and simply: in this case, there is a merging of the deceased’s estate with that of the heir, becoming a single estate. For example, if the deceased left debts, they become part of the acceptor’s estate.
- With the benefit of inventory: in this case, there is no merging of estates, and the heir is only responsible for the deceased’s debts up to the limit of the inherited amount.
There is also a distinction between:
- Express acceptance (with explicit manifestation of will)
- Tacit acceptance (when the successor performs acts that necessarily imply the intention to accept)
Regarding the forms of express acceptance, it should be noted that, in the case of acceptance with the benefit of inventory, a declaration received from a notary or the court clerk of the district where the succession was opened must be produced. Instead, outright acceptance can be done in a public deed or a private document.
The prescription of the right to accept the inheritance is ten years from the date of the succession’s opening. However, in the case of a party interested in having the heir decide within a shorter period, the law allows them to appeal to the judge to set a deadline after which the heir would lose the right to accept.
What should the successors do?
They must verify the existence of a will to succeed the deceased. Normally, upon learning of the death, the notary entrusted with the will informs the successors about their rights and indicates the necessary procedures to follow. If there are doubts about the existence of a will, successors can conduct a search at the Notarial Council of the territory of the deceased’s last domicile.
Declaration of succession in Italy and how to submit it
In any case, heirs, those called to inherit, or legatees must submit a succession declaration to the competent office of the Revenue Agency within one year of the de cuius’s death. This is a tax-related obligation. It can be submitted through an authorized intermediary (professionals or CAF) or directly and personally at the office of the district where the de cuius’s last residence (tax domicile) was located (if residing in Italy). Since October 3, 2006, electronic submission is mandatory. However, a single declaration is sufficient even if there are multiple obligated parties.
Cases where it is not mandatory to submit the declaration include:
- Inheritance assets valued at less than €100,000 and not including real estate or real rights.
- Devolution of the inheritance to the spouse and children (if present) or, alternatively, directly to relatives in a straight line.
Are you a resident abroad?
If you are a foreigner residing abroad and not registered in the Italian tax registry, you can exceptionally submit the model indicating the data specified in Article 4 of Presidential Decree No. 605/1973:
- For individuals, surname and first name, place and date of birth, gender, and foreign domicile.
- For entities other than individuals, the name, business name, or company name, and foreign domicile.
What information should the declaration contain?
In general, the fundamental data are:
- Identifying information of the deceased, those called, heirs, or legatees.
- Analytical description of the assets and rights that make up the estate.
- Liabilities and deductible charges with relevant supporting documents.
- The overall net value of the estate.
- Reductions and deductions with relevant supporting documents.
If the first two categories of elements are not indicated, the declaration is irregular.
What documents should be submitted?
To not nullify the effectiveness of the procedure, the Italian succession declaration must be accompanied by the following documents:
- Death certificate of the de cuius.
- Self-certification of the historical family status.
- Photocopy of a valid identification document for all heirs.
- Photocopy of the tax code or regional health card of the de cuius and all heirs.
- Deeds of origin of real estate owned by the deceased and/or co-owned with others.
- Deeds of donation that the deceased made during their lifetime to one or more heirs.
- Technical documents on real estate owned by the deceased (cadastral plans, planimetric surveys, land registers, DOCFA cadastral documents, any subsequent changes).
- 2 authentic copies of the publication of any will.
- Authentic copy of the minutes of any renunciation of inheritance.
- Invoice of the payment of funeral and medical expenses.
- Bank/postal statement of existence and consistency of mortgage loans, current accounts, booklets, financial investments, asset management, mutual funds, stocks, bonds, bank deposit certificates, term deposits.
- Certificate with any accrued and unreceived civil disability allowances of the deceased.
- Employer’s declaration indicating the benefits accrued by the employed worker (e.g., monthly pay, 13th month, 14th month, severance pay, holidays, etc.).
- Corporate statement of ownership of shares and their valuation (signed by the accountant).
- Minutes of the opening of safety deposit boxes, drawn up by an official of the Revenue Agency competent for the territory or by a public official.
What is the cost of Italian succession?
The cost varies depending on the complexity of the case, but it is advantageous to seek help from professionals in the field to save time and avoid errors.
Can you proceed independently?
Yes. On the website of the Italian Revenue Agency, you can use a software tool for free to fill out the succession declaration electronically. However, be aware that both computer and legal expertise are required.
What happens if the Italian succession declaration is not made?
In this case, the competent office of the Revenue Agency conducts assessments and can later request the settlement of the tax, with high penalties and interest accruing from the deadline for submitting the declaration.
The Agency issues the relevant assessment notice within five years from the deadline for the omitted declaration.
Can you retrieve a succession declaration?
Yes, by consulting the Italian Revenue Agency website (under “Receipts and statements of submission”). You can request a simple copy of the submitted declaration, containing the registration details and the indication of the competent territorial office.
At the same time, you can request a “conforming copy,” which is the certification of the electronic submission of the declaration.
How much are the inheritance taxes in Italy?
Once the declaration is submitted (even if after the deadline for submission but before the Revenue Agency issues the assessment), the office calculates the tax based on the following rates:
- For spouses and direct relatives: 4%.
- For other relatives up to the fourth degree, direct affines, and collateral affines up to the third degree: 6%.
- For other subjects: 8%.
There are also exemption amounts:
- One million euros for each direct heir and for the spouse.
- 100,000 euros for each brother and sister.
- 1.5 million euros for severely handicapped individuals or unlimited amounts for non-profit entities.
Finally, there are mortgage and cadastral taxes for real estate (with exemptions for the primary residence).
Can you renounce the inheritance?
Yes, by unilaterally declaring not to want to accept the estate left by the deceased. This declaration, to be valid, must not contain conditions or limitations. It is also not valid to make it for consideration of a sum of money or in favor of only some of the other subjects called to inherit. It must be received by a notary or the court clerk of the district where the succession was opened.
By renouncing the inheritance, you are considered never called. In any case, it can be revoked if you change your mind, as long as the inheritance has not been accepted by the person who became called following the renunciation of the first called, and only if the ten-year term for the prescription of the right to accept has not passed.
Conclusion
As seen in this brief guide, managing inheritance succession in Italy is a very complex matter. Whether regulated by law or a will, the procedures must be handled with particular care.
If you have doubts or need extensive research, contact one of our Italian lawyers specializing in inheritance succession matters to receive free legal advice.
