Foreigners inheriting real estate in Italy are subject to the same inheritance tax rules as Italian residents, though there may be a few additional considerations. Here’s what you need to know about inheritance tax for foreigners in Italy:
* Inheritance Tax Rates for Foreigners
Inheritance tax in Italy depends on the relationship between the deceased and the heir, regardless of nationality. The tax rates are the same for both residents and non-residents, and they are as follows:
1. For Close Family Members (spouse, children, parents) :
- Tax Rate : 4% of the market value of the property.
- Exemption : €1,000,000 per heir (amount above this is taxed at 4%).
2. For Siblings :
- Tax Rate : 6% of the market value of the property.
- Exemption : €100,000 per heir.
3. For Other Relatives (aunts, uncles, cousins, etc.) :
- Tax Rate : 6% of the market value of the property.
- No exemption .
4. For Non-Relatives :
- Tax Rate : 8% of the market value of the property.
- No exemption .
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* Exemptions and Reductions
- Primary Residence Exemption : If the inherited property is the primary residence of the heir, certain exemptions or reductions may apply to the registration and cadastral taxes.
- No Exemptions Based on Nationality : Foreign nationals are treated the same as Italian citizens for inheritance tax purposes, meaning there are no additional exemptions for non-residents.
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* Additional Costs
1. Registration Fees :
- Fixed at €200 for land registry tax (Imposta ipotecaria) and cadastral tax (Imposta catastale) per person.
2. Notary Fees :
- Notary fees depend on the property's value and can range from 1-2% of the property's value .
3. Property Valuation :
- An appraisal may be required to determine the market value of the property for tax purposes.
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* Inheritance Process for Foreigners
- Estate Administration : The process may involve obtaining a Certificate of Inheritance (Certificato di Successione) and registering the property transfer with the local land registry.
- Double Taxation : Italy has agreements with several countries to avoid double taxation, but it's important to check if your home country has an inheritance tax treaty with Italy.
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* Conclusion
For foreigners inheriting property in Italy, the tax rates are based on their relationship to the deceased and the value of the property. The rates and exemptions are the same as for Italian citizens, but non-residents should be aware of any international tax treaties between Italy and their home country that could impact the inheritance process. Consulting with an Italian notary or tax professional is recommended to navigate the legal and tax aspects of inheritance in Italy, especially if you are not a resident.
