How to proceed with free property transfer in Italy?
According to the Italian Law, free property transfers allow individuals to cede a certain type of good or property without receiving anything real or financial in exchange. Donation (Italian free property and goods transfer) is also irrevocable with two exemptions: donee’s ingratitude and the occurrence of giver’s child at the time of the donation agreement. In addition, in order to be effective, the donation also requires donee’s consent.
Italian Law comprehend direct and indirect donation. Generally speaking, direct donation always requires notary activity while the indirect donation does not. In the context of a direct donation, the notary will draft the donation agreement adding donation circumstances plus giver and donee’s personal information. In general, parents and spouses may decide to donate the property where they live to their sons establishing a free usufruct in favour of the giver. With the drafting of the donation agreement and notary’s signature, the notary will proceed with the registration of the agreement.
Indirect donation does not require notary and no taxes burden are expected. The classic indirect donation case is when the parent purchases property with the intention of registering the purchase in the name of the child. Also, a bank transfer for the purchase of a property may be regulated as a indirect donation. In this case, Italian Court of Cassation (Sentence No. 18725/2017) established the circumstances where the previous bank transfer shall be considered indirect donation. Therefore, it is important that the purchase agreement discloses that the price of the property has being paid by someone else.
VGS professional are able to assist you in every stage of your donation procedure. Our lawyers have achieved brilliant results negotiating the best conditions for givers and donees. In addition, in the context of direct donation, VGS will make at your disposal his network of notary. Should you need any information in relation to this matter, please contact us through the online form you find in our website. You will receive a first answer within the next 24 hours.