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Inheritance Tax and Gift Tax

There is no longer any tax on inherited property, regardless of its value and the relationship between the deceased and the heirs.

On immovable property and real property rights, the cadastral tax (imposta catastale) and land registry tax (imposta ipotecaria) must be paid at the rates of one percent and two percent, respectively, of the cadastral value of the property or the real property rights included in the inheritance.

If one of the beneficiaries satisfies the conditions for the main or only residence (prima casa), the cadastral and land registry taxes due on an inheritance or a gift are a fixed amount of €168 each.

In relation to gifts, the rules vary depending on the degree of kinship and the value of the gift. There are no taxes payable on gifts in favour of a spouse, descendants or other relatives up to the fourth degree.

Gifts in favour of persons other than those mentioned above are subject to taxes on the transfer if the value of the share due to each beneficiary is greater than €180,759.91. In this case registration tax is applied to the part that exceeds this value for the corresponding deed of transfer.

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