Under Italian Law, inheritance tax is due over the wealth transfer following to the death of the deceased relative.
The assets and rights transferred constitute the so-called estate (attivo ereditario), while the debts of the deceased constitute the liabilities of the estate (passive ereditario). Inheritance tax applies to the difference between the assets and liabilities of the estate.
Within one year from the opening of the succession, the declaration of inheritance must be submitted to the Inland Revenue Office who will calculate the inheritance tax to be paid.
Who is liable to pay the inheritance tax?
- The heirs and legatees;
- Those appointed to implement the last wills of the deceased.
The declaration of inheritance is not compulsory if the inheritance is transferred to the spouse, or if the inheritance has a lower value than € 100,000 or if it does not include a property.
The amount of the inheritance tax differs according to the following table:
- Spouses and lineal relatives: 4% if the inheritance value is above € 1.000.000;
- Siblings: 6% if the inheritance value is above € 100.000;
- Other relatives: 6%;
- All the others: 8%.
Payment is made to the Italian Inland Revenue Office (Agenzia delle Entrate). Companies are exempt from inheritance tax if the heirs continue to carry out their activities for a period of at least 5 years.