How inheritance tax works in Italy
Italy does have an inheritance and gift tax. The rate depends on the relationship between the deceased or donor and the beneficiary, and the same framework generally applies to gifts as well as estates.
Transfers to a spouse or direct descendants are taxed at 4% only above EUR 1 million per beneficiary. Brothers and sisters are taxed at 6% above EUR 100,000 per beneficiary. Other relatives up to the fourth degree are taxed at 6% on the full transfer, and all other beneficiaries are taxed at 8%.
From 1 January 2025, the tax became self-assessed within 90 days from the filing of the inheritance return, and the rules were expanded to catch transfers through trusts and similar constraints.
Tax rates at a glance
- Spouse and direct descendants
- 4%EUR 1m allowance
- Brothers and sisters
- 6%EUR 100k allowance
- Other relatives up to 4th degree
- 6%
- Other beneficiaries
- 8%
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FamiliesExpatsInvestorsFamily officesEstate planners
Watch out for
- Inheritance tax is only part of succession planning. Wills, probate, bank releases, share transfers and the location of assets still matter.
- Real estate inherited in Italy can also trigger mortgage and cadastral taxes, so the estate bill is often more than just the inheritance tax rate.
- Foreign heirs may owe tax or reporting in their own country even when Italy is the source country.
- Trusts and other constrained transfers are now inside the inheritance/gift tax rules under the 2025 update.
Frequently asked questions
Does Italy have inheritance tax?
Yes. Italy taxes inheritances and gifts at 4%, 6% or 8% depending on the relationship between the parties.
What is the spouse and child exemption?
Transfers to a spouse or direct descendants are taxed at 4% only above EUR 1 million per beneficiary.
Are gifts taxed too?
Yes. Italy’s gift tax rules broadly follow the same rate and exemption structure as inheritance tax.