Giving away a property in Italy

What content must a gift agreement have?

A gift agreement must include both the donor and the beneficiary. In addition, the object of the gift must be named precisely. If these minimum requirements are not met by the contract, the general statutory regulations on gifts apply. The parties can make the following agreements:

• Reservation of a lifelong usufruct or right of residence
• a right of withdrawal
• certain conditions
• Conditions

Agreement of usufruct or right of residence

In order to reduce the value accepted by the tax office, it may make sense to reserve a lifelong usufruct or a right of residence, as these values can be deducted from the gift tax. However, taxes are due again on the death of the usufructuary.

What tax obligations exist?

In addition to gift tax, the following additional taxes apply to real estate:

• Transfer tax (imposta ipotecaria)
• Cadastral tax (imposta catstale)
• Register tax (imposta di registro)
• Value added tax (imposta sul valore aggiunto IVA)
• Mortgage tax (imposta ipotecaria)
• Real estate transfer tax (imposta sugli acquisti immobiliari)

The value of the tax depends on whether the property is purchased as a primary or secondary residence and whether it is sold by a registered company or a private individual. In most cases, the tax is calculated on the basis of lump sums

Can a gift in Italy also be subject to German gift tax?

If the donor or the donee is resident in Germany, German gift tax is generally also payable. Double taxation can be avoided in whole or in part by offsetting the Italian gift tax against the German gift tax.

Att. Prof. (GTU / Georgien) Dr. phil. Stephan J. Lang