Inheritance tax in Italy - News
Inheritance Tax in Italy (Tassa di successiones) was abolished in 2001 by the Italian Government of that time but reintroduced a few years later by the actual one with the "Finanziaria", the Budget Law of 2007.
The dabate in Parliament has been very harsh and its ratification close to fail but the Italian heavy budget needs prevailed.
The actual Inheritance Tax follows the usual criteia of the "capacitÓ contributiva" (contributory capacity) together with the genealogical distance between deceased and heir and it is also proportional to the value of the estate.
In an example for a close descendant "in linea retta", e.g.: father and son, but also for a spouse, there is a threshold of one million Euros and above it the tax is 4 percent.
In case of legacies to other consanguineous, e.g.: a grandchild, within the fourth degree and for relatives within the third degree, the taxwill be 6 percent with no threshold.
Legacies to others heirs will be charged at a rate of 8 percent on the value.
It is worth remembering that there is a double taxation Treaty between the UK and Italy, which means that tax has to be paid just in one country and not in both.
Non-residents, could be responsible for taxes on income, capital gains and inheritance tax, depending on the individual's financial position.
This will vary between individuals.
Please contact our Italian department for further information on this and other related matters.