Inheriting Property in Italy: International Succession Guide

When someone who owns Italian assets dies, heirs face two parallel challenges: which succession law applies and how to navigate the Italian bureaucracy. You need to understand both the conflict-of-laws rules and the practical steps to free up property and bank accounts.

What law applies to a foreigner's estate with property in Italy?

For deaths after 17 August 2015, EU Regulation 650/2012 usually applies the law of the deceased's last habitual residence to the whole estate, including assets in Italy, unless the person chose the law of their nationality in a will. Italian forced-heirship rules may still intervene for assets in Italy if the chosen foreign law conflicts with Italian public policy, especially on the legitimate share of children and spouse.

Here is how the conflict-of-laws rules generally work when the deceased owned Italian assets:

• Default rule - habitual residence: Under EU Regulation 650/2012 ("EU Succession Regulation"), the law of the deceased's last habitual residence governs the entire succession, regardless of where the assets are located.
• Professio iuris - choice of law: The deceased can choose in a will for the law of their nationality to govern their succession (for example, "I choose English law to govern my succession"). This applies even if the country is not in the EU.
• Opt-out states: The UK, Ireland, and Denmark did not adopt the Regulation, but their citizens can still make a valid choice of law for Italian purposes. Italian notaries and courts will normally respect that choice.
• Single law for whole estate: The intention of the Regulation is to avoid splitting the estate between different laws for different countries, so one law should generally apply to all assets, including Italian property and bank accounts.
• Public policy limit (ordine pubblico): If the chosen foreign law allows total disinheritance of close family, Italian courts may refuse to apply it to the extent it violates Italian public policy protecting the "legittimari" (forced heirs).

Practical examples of which law applies

• Example 1 - British retiree in Tuscany: A UK citizen living permanently in Tuscany dies, leaving a UK-style will with no choice of law clause. The person was habitually resident in Italy, so Italian succession law applies by default to their worldwide estate, including Italian and UK assets (subject to UK domestic rules).
• Example 2 - French resident with Italian holiday home: A French citizen resident in Paris owns a villa in Liguria. They die without choosing a law. French law applies as the law of habitual residence, so Italian authorities apply French succession rules to the Italian villa.
• Example 3 - Canadian national with choice-of-law clause: A Canadian living in Canada owns an apartment in Rome and leaves a will saying "I choose Canadian law to govern my succession." Italian authorities will apply Canadian law, but will still test the result against Italian public policy on forced heirs for the Italian assets.

Key documents that help establish applicable law

• Foreign will, ideally mentioning a choice of law under EU Regulation 650/2012.
• European Certificate of Succession (ECS) if issued by an EU state, used to prove heirship in Italy.
• Evidence of habitual residence at the time of death (residence certificate, tax residence, utility bills, etc.).

What is the "legitimate share" (quota legittima) and can you disinherit children in Italy?

If Italian succession law applies, you cannot freely disinherit your children or, in most cases, your spouse, because they have a protected "legitimate share" of the estate. If a will violates these rights, legitimate heirs can challenge it through an action to reduce excessive gifts and dispositions.

Under the Italian Civil Code (articles 536 and following), certain family members are "legittimari" (forced heirs):

• Spouse.
• Children (including adopted children).
• In some cases, parents (if there are no children).

The law reserves a minimum share of the estate for these people. The exact percentages depend on the family structure:

How the legitimate share works in practice

• If the testator gives more than the disposable share to someone else (for example, a new partner or one favored child), legitimate heirs can bring an azione di riduzione (action for reduction).
• This action asks the court to "cut back" gifts and testamentary dispositions that infringe the reserved shares, starting with the most recent lifetime gifts.
• The right to bring the action usually expires after 10 years from the date of death.
• A will that attempts to fully disinherit a child is not automatically null, but it is vulnerable; the child can sue to claim their legitimate share.

Interaction with foreign law choices

• If the deceased chooses a foreign law that allows full freedom of disposition, Italian courts will still examine whether the outcome violates the core protection of forced heirs.
• If a legitimate heir lives abroad and does not consent to the distribution, the public policy exception may allow them to enforce Italian-style protection over Italian assets.
• This analysis is technical; it usually requires advice from both an Italian lawyer and a lawyer in the chosen law's jurisdiction.

How does the Italian succession (successione) process work for foreign-owned property?

The Italian succession process has two main parts: recognising who the heirs are under the applicable law and completing the "dichiarazione di successione" and land registry updates for Italian assets. Heirs usually must file the succession tax return within 12 months of death, pay related taxes, then update ownership at the Conservatoria and Catasto through an Italian notary or a qualified intermediary.

Key concepts: "successione ereditaria" vs "dichiarazione di successione"

• Successione ereditaria: The legal transfer of the deceased's rights and obligations to the heirs under the applicable succession law.
• Dichiarazione di successione: A mandatory tax filing to the Agenzia delle Entrate that lists the heirs and assets located in Italy and calculates inheritance and related taxes.

Main steps in an Italian "successione" with foreign elements

1. Collect basic documents
   • Death certificate (Italian or foreign, often with apostille and sworn translation).
   • Family status information (marriage certificate, birth certificates of children, sometimes family register).
   • Copy of the will, if any, and evidence of probate in the home country, if applicable.
   • Identity documents and tax codes (codice fiscale) of all heirs.
2. Identify Italian assets
   • Land registry searches (Conservatoria dei Registri Immobiliari) to confirm property titles.
   • Cadastral extracts (visure catastali) for each property, showing official cadastral value.
   • Bank statements, investment accounts, company shares, and other Italian assets as of the date of death.
3. Determine applicable law and heirship
   • Apply EU Regulation 650/2012 to establish whether Italian law or foreign law governs.
   • Interpret the will under the applicable law, including any choice of law clause.
   • If available, obtain a grant of probate or equivalent from the home jurisdiction or a European Certificate of Succession.
4. Prepare and file the "dichiarazione di successione"
   • File electronically with the Agenzia delle Entrate, usually through a notary, accountant, or tax intermediary.
   • Deadline: 12 months from the date of death. Late filing attracts penalties and interest.
   • The return lists all Italian assets, heirs, and the values used for tax purposes.
5. Pay inheritance, mortgage, and cadastral taxes
   • Taxes are paid using form F24, usually at the time of filing the declaration.
   • The Agenzia delle Entrate issues a receipt and may request clarifications or corrections.
6. Update property titles at the land registry
   • After tax payments, a notary or qualified technician files the transfer deeds with the Conservatoria and Catasto.
   • The properties are then officially registered in the names of the heirs, each with their percentage share.
7. Release of bank and financial assets
   • Heirs provide the bank with the registered succession declaration, proof of tax payment, and any bank-specific forms.
   • The bank unfreezes the accounts and releases funds in accordance with the heirs' instructions.

Timeframe and practical delays

• Collecting documents and clarifying applicable law can take 1 to 6 months, depending on cooperation from foreign authorities.
• Once ready, filing the succession declaration and paying taxes can be done in a few weeks.
• Land registry updates and account releases often take an additional 1 to 3 months, especially if banks or registries raise queries.

How is Italian inheritance tax (imposta di successione) calculated and paid?

Italian inheritance tax is calculated per heir on the net value they receive, using different tax rates and allowances depending on the family relationship. Heirs must generally pay inheritance tax, plus fixed or proportional mortgage and cadastral taxes on real estate, before Italian authorities and banks fully release assets.

Current inheritance tax brackets and allowances

Under Legislative Decree 346/1990 (Testo Unico delle Successioni), the main brackets are:

Example of inheritance tax calculation

Imagine a deceased leaves to one child an Italian apartment worth €400,000 and an Italian bank account with €200,000. Assume no debts and ignore foreign assets for simplicity.

• Total Italian estate share for the child: €600,000.
• Tax-free allowance for child: €1,000,000.
• Taxable base: €600,000 - €1,000,000 = €0.
• Inheritance tax: €0 in this simplified case, but mortgage and cadastral taxes still apply to the apartment.

Mortgage and cadastral taxes on real estate

• Imposta ipotecaria (mortgage tax) and imposta catastale (cadastral tax) apply on inherited Italian property.
• If the heir qualifies for "prima casa" (primary residence) benefits:
  • Mortgage tax: usually €200 fixed per property.
  • Cadastral tax: usually €200 fixed per property.
• Without primary residence benefits:
  • Mortgage tax: generally 2% of cadastral value.
  • Cadastral tax: generally 1% of cadastral value.

Payment process and timing

• The professional filing the "dichiarazione di successione" (usually a notary or tax adviser) calculates the taxes via the Agenzia delle Entrate's electronic system.
• Taxes are paid using F24 forms, often automatically charged from an Italian bank account tied to the filing professional.
• Payment usually happens on the same day as filing or shortly afterwards.
• Without proof of this payment, banks and the land registry will not complete transfers in practice.

Penalties for late filing or payment

• If heirs miss the 12-month deadline:
  • Surcharges on tax due (from 30% up to 60% in serious delays, though reductions may apply if you regularise voluntarily).
  • Interest calculated daily on unpaid amounts.
• Voluntary late filing with self-correction (ravvedimento operoso) can reduce penalties if done before the tax authorities discover the omission.

What happens to Italian bank accounts after the account holder's death?

Italian banks usually block or partially freeze a deceased person's accounts as soon as they learn of the death. They will only release funds to heirs once they receive formal succession documentation and evidence that inheritance tax obligations have been addressed.

Typical bank reaction after notice of death

• The bank flags the account as belonging to a deceased customer.
• Outgoing payments and withdrawals are blocked, except for limited payments such as funeral expenses if the bank allows them.
• Incoming payments (for example, pensions or rents) may still arrive, but heirs cannot freely access them until succession formalities are completed.

Documents banks usually require

• Death certificate.
• Heir identification documents and tax codes (codice fiscale).
• Copy of the will and, where applicable, the foreign grant of probate or European Certificate of Succession.
• Registered "dichiarazione di successione" or other proof of filing with Agenzia delle Entrate.
• Proof of inheritance tax payment (F24 receipts) or bank forms authorising the bank to pay taxes from the frozen account.
• Bank specific succession forms, sometimes signed before a notary.

Joint accounts and survivorship

• For joint accounts, practice varies between banks:
  • Some banks allow the surviving account holder to continue using their share, especially if the mandate specifies "firma disgiunta" (either holder can operate alone).
  • Others freeze the whole balance until succession is clarified, then release the deceased's share to the heirs.
• Italian law does not automatically recognise a "right of survivorship" as in some common law systems; the deceased's share normally falls into the estate.

Using bank funds to pay inheritance tax

• Banks often accept instructions to pay inheritance and related taxes directly from the deceased's own account once the heirs sign the required documents.
• This solves the common problem of heirs not having cash to pay taxes before assets are released.
• After paying taxes, the bank distributes the remaining balance among the heirs according to their shares or transfers funds to an estate account.

Which Italian authorities and professionals are involved in a cross-border succession?

In a cross-border Italian succession you will usually deal with the Agenzia delle Entrate, land registry offices, and one or more Italian professionals such as a notary, lawyer, and tax adviser. Coordinating these actors effectively speeds up the process and reduces the risk of costly mistakes.

Key Italian authorities

• Agenzia delle Entrate:
  • Receives and processes the "dichiarazione di successione".
  • Calculates and collects inheritance, mortgage, and cadastral taxes.
  • Issues receipts and handles any queries or audits.
• Conservatoria dei Registri Immobiliari / Ufficio del Territorio:
  • Registers transfers of ownership of real estate following succession.
  • Ensures the land register reflects the new owners and their shares.
• Catasto (Cadastral office):
  • Maintains cadastral data and values of properties.
  • Updates cadastral records with the names of the heirs.
• Tribunale (Civil Court):
  • Involved if there is a dispute between heirs, a challenge to a will, or an action for reduction of gifts violating the legitimate share.

Key professionals and their roles

• Notaio (civil law notary):
  • Authenticates documents, verifies heirship, and drafts deeds for transfer of property.
  • Often handles the electronic filing of the succession declaration.
  • Advises on how to structure the transfer to align with Italian law and forced-heirship rules.
• Avvocato (lawyer):
  • Represents heirs or executors in disputes or complex conflict-of-laws questions.
  • Drafts or reviews cross-border wills and choice-of-law clauses.
  • Coordinates with foreign counsel when estates span several legal systems.
• Commercialista / tax adviser:
  • Assists with valuation of assets and calculation of taxes.
  • Files the succession declaration if a notary is not used.
  • Advises on ongoing tax obligations, such as IMU property tax for inherited property.
• Sworn translator and local consul or embassy:
  • Provide certified translations and apostilles for foreign documents.
  • Help with formalities like issuing life certificates or notarised signatures for heirs abroad.

When should you hire an Italian succession lawyer or notary?

You should involve an Italian notary and often a succession lawyer whenever there are cross-border elements, multiple heirs, or potential conflicts about the legitimate share. Handling a foreign-owned Italian estate without local professional help is usually only realistic for very small, uncontested estates with straightforward heirship.

Situations where professional help is strongly recommended

• Cross-border estates:
  • The deceased lived in one country, held nationality of another, and owned assets in Italy.
  • A> conflict-of-laws analysis is required under EU Regulation 650/2012.
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• Complex family structures:
  • Second marriages, step-children, partners outside marriage, or children from different relationships.
  • Potential claims from forced heirs who feel disadvantaged.
• Significant Italian property or business assets:
  • High-value real estate, family businesses, or company shares.
  • Need to manage capital gains, corporate, and local taxes alongside inheritance tax.
• Bank or registry difficulties:
  • Banks refuse to release funds without documents you do not yet have.
  • Land registries raise issues with foreign wills or probate documents.
• Disputes among heirs:
  • Heirs disagree about the will, the legitimate share, or valuation of assets.
  • Some heirs want to keep the property, others want to sell.

What a lawyer or notary practically does for you

• Reviews the foreign will and probate documents and confirms which law applies.
• Explains each heir's rights under Italian law, especially regarding the legitimate share.
• Prepares or oversees the "dichiarazione di successione" and coordinates tax payments.
• Communicates with banks, the Agenzia delle Entrate, and land registries on your behalf.
• Negotiates settlements between heirs and, if necessary, brings or defends legal actions.

Indicative cost ranges in Italy

Costs vary widely by region and complexity. Many professionals will provide an initial estimate once they see the asset list, family structure, and key documents.

What are the next steps heirs should take after a foreign owner of Italian property dies?

Heirs should first secure documents and clarify which law applies, then appoint an Italian professional to handle the succession declaration and dealings with banks and registries. Acting within the 12-month deadline and coordinating information between countries avoids penalties and long freezes on assets.

Immediate actions (first 1-3 months)

1. Gather core documents
   • Death certificate (request certified copies).
   • Any wills, codicils, or estate planning documents.
   • Proof of the deceased's residence and nationality.
   • Italian property deeds, tax bills, and bank details.
2. Identify and contact key professionals
   • Contact an Italian notary or lawyer experienced in international successions.
   • If necessary, instruct a lawyer in the home country to obtain probate or a similar document.
3. Notify Italian banks and institutions
   • Inform banks of the death and ask for their list of required documents.
   • Stop automatic payments that are no longer needed (subscriptions, some utilities) while maintaining essential services for the property.

Medium-term actions (within 12 months)

4. Determine applicable law and heirs' shares
   • Confirm with your advisers which law governs the succession and whether forced-heirship rules apply.
   • Agree, if possible, on a distribution plan among heirs consistent with that law.
5. File the "dichiarazione di successione"
   • Provide asset valuations, heir details, and all supporting documents to the appointed professional.
   • Ensure the declaration is filed within 12 months of death to avoid penalties.
6. Pay inheritance, mortgage, and cadastral taxes
   • Decide whether taxes will be paid from heirs' funds or from the deceased's Italian accounts via the bank.
   • Keep copies of all F24 receipts and the Agenzia delle Entrate's confirmations.

Longer-term actions (after taxes are paid)

7. Transfer property and release bank funds
   • Have the notary update the land registry and cadastral records to show the heirs as owners.
   • Provide banks with all required documents so they can unfreeze accounts and distribute funds.
8. Decide what to do with inherited assets
   • Agree among heirs whether to keep, rent, or sell the Italian property.
   • If you keep property, register for ongoing taxes such as IMU and arrange local management.
   • If you sell, coordinate with the notary to complete the sale and consider possible capital gains tax.

Acting methodically, keeping deadlines in mind, and working with experienced Italian professionals will significantly reduce stress for the heirs and shorten the time until they can access and use the inherited Italian assets.