Inheritance Tax in Italy: Succession Declaration Guide 2026
Losing a family member is already a painful experience. Having to manage the bureaucratic and tax obligations of an inheritance at the same time can become overwhelming without clear guidance. This article explains everything you need to know, in plain language.
What is inheritance (successione ereditaria)?
When a person dies, their estate (assets, credits and debts) transfers to the heirs. This transfer is governed by succession law and, from a tax perspective, by the inheritance tax (imposta di successione).
Heirs may be:
- Forced heirs (legittimari): spouse, children, parents — entitled to a protected portion of the estate (quota di legittima) regardless of any will
- Testamentary heirs: named in the will
- Legatees: receive specific assets, not the full inheritance
The declaration of succession: obligations and deadlines
The dichiarazione di successione is the document heirs must file with the Revenue Agency to notify the transfer of the estate.
Who must file it
All heirs are required to file when the estate value exceeds €100,000 or when the estate includes real property (regardless of value).
Filing deadline
Within 12 months of the date the succession opens (which coincides with the date of death). Late filing incurs penalties.
How to file
Only electronically, via:
- Revenue Agency software (free but complex)
- Authorised intermediary: accountant, notary, CAF
Our studio handles the entire process, from the estate inventory to electronic submission.
Inheritance tax: rates and allowances 2026
Inheritance tax is calculated on the net taxable estate (assets minus liabilities) transferred to each heir.
Rates and allowances by category
| Beneficiary | Allowance | Rate on excess |
|---|---|---|
| Spouse / children / descendants | €1,000,000 per heir | 4% |
| Brothers and sisters | €100,000 per heir | 6% |
| Other relatives up to 4th degree | None | 6% |
| Other individuals | None | 8% |
| Severely disabled (L. 104) | €1,500,000 | Varies |
Practical example: a child inheriting €800,000 from a parent pays nothing (below the €1,000,000 allowance). If they inherit €1,200,000, they pay 4% on the excess of €200,000 only — i.e. €8,000 in tax.
What is exempt from inheritance tax
- Primary residence (with first-home requirements): only fixed mortgage and land registry taxes apply
- Businesses and company shareholdings: exempt if the beneficiary maintains control for at least 5 years
- Life insurance policies: generally excluded from the taxable estate
- TFR (severance pay): does not form part of the taxable estate
- Italian government bonds: exempt from inheritance tax
Valuing property in succession
For inheritance tax purposes, real estate is valued using the reassessed cadastral income, not market value. This is a crucial difference often overlooked:
- Cadastral income × 1.05 (revaluation) × cadastral multiplier (e.g. 110 for A/2 residential properties, 120 for A/1 and A/8)
In many cases the cadastral value is significantly below market value, which reduces the actual tax owed.
Property with a mortgage
If the property had an outstanding mortgage at the time of death, the remaining balance is a deductible liability from the taxable estate, reducing the tax base.
Bank accounts in succession
Current accounts and bank deposits are automatically frozen at the account holder’s death. To unfreeze them you must present to the bank:
- Death certificate
- Notarial deed or heirs’ substitute declaration
- Receipt confirming the succession declaration has been filed (or self-certification of exemption eligibility)
Banks cannot require payment of inheritance tax as a condition for releasing funds — but often do so as internal practice. If disputes arise, your accountant can intervene.
Inheriting debts: accept or renounce?
Inheritance is not always advantageous. If the deceased had debts exceeding their assets, accepting the inheritance means taking on those debts.
The options are:
1. Unconditional acceptance: you accept everything, assets and liabilities. Appropriate when the estate is clearly positive.
2. Acceptance with benefit of inventory: you accept the inheritance but limit liability for debts to the inherited assets only. Creditors cannot pursue your personal assets. Recommended when the extent of debts is uncertain.
3. Renunciation: you refuse everything. Renunciation must be made within 10 years of the succession opening, before a notary or court registrar. Important: once you renounce, you cannot change your mind.
Succession of a business or company shareholding
One of the most delicate aspects is transferring a family business. Full exemption from inheritance tax applies when:
- Beneficiaries are descendants or the spouse
- Beneficiaries continue the business activity (or maintain the controlling interest) for at least 5 years
- The commitment to respect this condition is declared in the filing
If these conditions are not met before the 5 years expire, the tax becomes due with interest and penalties. Advance planning is essential.
The will: a wealth planning tool
Having an up-to-date will significantly simplifies the inheritance process for heirs. It reduces the risk of disputes, allows specific assets to be directed to specific people, and can optimise the overall tax impact.
Your accountant can work alongside the notary in preventive wealth and succession planning, evaluating instruments such as:
- Lifetime gifts (which anticipate succession with potential tax advantages)
- Family agreements for business transfers (patti di famiglia)
- Life insurance policies for succession purposes
- Trusts (for complex estates)
Studio CITI snc: inheritance assistance in Milan
We handle succession declarations and assist heirs with every tax aspect: from estate valuation to tax calculation, from unfreezing bank accounts to business transfer planning. Operating in Milan since 1984.
Tel. 02.450 774 39 — Contact us
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