Italian inheritance when the heirs live in another country

When someone dies leaving a home, a bank account or a company in Italy, the heirs often live in London, New York or Dubai. Italian procedures still apply to the Italian assets. Here is how inheritance in Italy works when the family lives abroad.

Which law applies

For deaths since 17 August 2015, Italy applies the EU Succession Regulation (650/2012). As a rule, the whole succession is governed by the law of the country where the deceased was habitually resident at death. A person can instead choose, in a will, the law of their nationality.

If Italian law applies, close family members are protected by forced heirship (legittima): a share of the estate is reserved to the spouse, the children and, in some cases, the parents, whatever the will says.

The steps in Italy

1. Find out whether there is a will. A will made abroad can be valid in Italy if it respects the form of the country where it was made. To be used in Italy it is published by an Italian notary, with a sworn translation.
2. Accept or renounce the inheritance. Heirs are not automatically liable for the debts of the deceased until they accept. Acceptance can be made with the benefit of inventory, which limits liability to the value of the estate.
3. File the succession declaration (dichiarazione di successione) with the Italian Revenue Agency within twelve months of the death. This is also the basis for updating the land registry.
4. Release bank accounts and transfer property, which banks and notaries will only do once the documents are in order.

Inheritance tax in Italy

Italian inheritance tax applies to assets located in Italy even if the deceased lived abroad. The main rates are:

• Spouse and children: 4% on the value above €1,000,000 for each heir.
• Brothers and sisters: 6% on the value above €100,000 for each heir.
• Other relatives: 6%. Everyone else: 8%.

For real estate, mortgage and cadastral taxes are also due, with reductions in some cases.

Handling it from abroad

Heirs need an Italian tax code, and foreign documents such as death certificates and wills need an apostille and a translation. Most steps can be completed through a power of attorney, without travelling to Italy.

Planning ahead

If you own assets in Italy and live elsewhere, a will that chooses the applicable law and is coordinated with the rules of your country can save your family time, costs and disputes.

Related: Italian inheritance and wills lawyer · DIFC wills for assets in the UAE · Buying property in Italy from abroad

This article is general information and not legal advice. Tax rates and allowances are those in force at the time of writing.