Inheritance and Wills in Italy

Anyone who owns property in Italy or lives here should be familiar with inheritance law—it differs from German law. This guide explains who inherits, how a will works, how much inheritance tax is, and how the inheritance declaration process works. (Note: General guidance; not legal or tax advice.)

Who Inherits: Order of Succession and Statutory Share

In the absence of a will, the statutory order of succession: The order of inheritance is spouses, children, and parents. What is important is the Statutory Share (statutory share): Certain close relatives (the legitimize – Spouses, children, and, if applicable, parents are entitled to a legally protected minimum share and cannot be completely disinherited.

The Will

There are three valid forms of a will (testamento):

• olografo: written entirely by hand, dated, and signed.
• public: notarized (legally binding, but subject to a fee).
• secret: a secret will deposited with a notary.

A will must also respect the statutory share of the heirs entitled to a compulsory portion.

Inheritance Tax (imposta di successione)

Compared to other EU countries, Italy has Low inheritance taxes and high tax-free allowances:

• 4 % for spouses and children/parents – only for the portion regarding 1 million euros per heir.
• 6 % for siblings—above an exemption amount of 100,000 € per heir.
• 6 % for other relatives (up to the 4th degree) – with no exemption.
• 8 % For everyone else—no tax-free allowance.

In cases of severe disability (Law 104), the exemption amount increases to 1.5 million euros. The tax-free allowance applies per person—so for a married couple with two children, €3 million is tax-free.

Real Estate in an Estate

If a property is part of an inheritance, two additional taxes are added to the assessed value: the Mortgage Tax (mortgage tax, 2 %) and the Cadastral Tax (cadastral, 1 %). If an heir uses the property as their primary residence, both amounts are reduced to a fixed €200 each.

The Declaration of Inheritance

The heirs must, within 12 months after the death, a Declaration of Inheritance (Declaration of Inheritance) to the Agenzia delle Entrate. As of July 15, 2025, the process has been in effect via Self-assessment (The system calculates the taxes automatically); payment is then made within 90 days via F24.

What You Need to Do Next

Get an overview of your assets and potential heirs, determine the statutory share, and—if you have specific wishes—draft a legally valid will (preferably with a notary). In the event of a death, be sure to meet the 12-month deadline for the “dichiarazione di successione.” Legal advice is advisable regarding the statutory share and cross-border cases.