Since August 2015 the way that inheritance legislation works within Europe has changed significantly.
Previously when you died your property would have to be shared among your heirs according to the Italian inheritance laws. Italian inheritance law reserves a share of the assets of the deceased person to some of his closest relatives, even in the presence of a Will disposing differently.
Under the new EU Regulations (providing that you are not resident in Italy or leave an Italian Will) you can arrange for the law of your own nationality to apply to your assets rather than Italian Law which may be less flexible than that which you are used to.
Italian Inheritance Tax rates
If applicable, Inheritance tax on property or assets in Italy still has to be paid in Italy. The property or assets also have to be declared back in the UK although due to Double Taxation Laws you can offset the tax paid in Italy against the tax payable in the UK.
The rate of inheritance tax payable in Italy will depend on two things:
- The relationship between the person who died and the beneficiaries
- The amount that each beneficiary receives (below a value of euro 1M the tax is not due - as of 1/2016)
The heirs have to pay tax on the inherited properties:
- In general, 3% on the Cadastral value of the property (normally much lower than the market value)
Need help with inherited property in Italy?
Our UK-based legal team are highly experienced in helping clients who have inherited property in Italy, including where you wish to keep the property or plan to sell the property you have inherited.
If you own property in Italy, we can also help you with making an Italian Will.
With a thorough understanding of both UK and Italian law, we can provide clear, reliable legal guidance in plain English, giving you the confidence to deal effectively with inherited property in Italy.