Giving away real estate in Italy
Gift of a property in Italy as part of anticipated succession
There are special legal regulations for gifts in Italy, which are particularly important for the transfer of real estate. The following text explains the key aspects of Italian gift law, including the choice of applicable law, tax obligations and the valuation of real estate.
What you should know about the donation of real estate
German or Italian gift law?
In the case of a gift inter vivos, the contracting parties can in principle choose the applicable law. However, Italian law must be applied with regard to the transfer of ownership and entry in the property register.
Since the notary and the land registrar usually require a legal opinion on the validity and application of foreign law when a foreign law is agreed with regard to a gift, a choice of law often leads to additional costs and effort.
Form of a gift agreement
The gift of a property must be made in the form of a deed in order to be valid.
Italian gift tax
If a property is given as a gift in Italy, this is subject to Italian gift tax regardless of whether the donor and donee are resident in Italy for tax purposes.
Rating
The taxpayer, i.e. usually the donee, must state the cadastral value in the gift tax return. This value is determined according to the information in the cadastral register.
German gift tax
If the donor or the donee is resident in Germany for tax purposes, German gift tax is also payable. Under certain circumstances, double taxation can be fully or partially avoided by offsetting the Italian gift tax against the German gift tax.
Amount and allowances of gift tax
Gift tax percentages
The gift tax is 4% for items exceeding 1,000,000.00 € per beneficiary.
If, after the transfer, a transfer of the primary residence of the donee takes place, both taxes are paid at a flat rate of
200.00 € will be refunded. In addition to the taxes mentioned above, additional special fees may apply, which vary depending on the province.
Allowances
The tax-free amounts depend on the relationship between the recipient and the donor. The allowances are as follows:
- Spouse, ancestors and children = 1,000,000.00 €
- Side relatives = 100.00,00 €
- Other = 0,00 €
There are special rules for disabled persons. They receive a flat-rate allowance of 1,500,000.00 € regardless of their relationship to the donor.
Table of Contents
Att. Prof.* Dr. Stephan J. Lang
Your specialist for inheritance law
Tel.: +49 (0)172 / 923 1838
Settling an estate in Italy can be complex and demanding. There are a number of legal and administrative hurdles that need to be overcome. We can help you further.
Overview Topics Italy
Inheritance law Italy
Find out now about the most important questions of Italian inheritance law: Which national inheritance law and tax law applies? We are your experts in German-Italian inheritance law.
Settlement of estates
Find out now about the most important questions regarding the settlement of estates in Italy: How can a right of inheritance be proven? What documents are required for the acceptance of an inheritance?
Will
Find out now about the most important questions regarding wills in Italy: How must a will be drawn up in person? What types of notarized wills are there?
Law on compulsory portions
Find out now about the most important questions regarding the right to a compulsory portion in Italy: Which persons are entitled to a nocturnal inheritance? How can the no-name portion be enforced in court?
Legal succession
Find out now about the most important questions regarding intestate succession in Italy: When does intestate succession take effect? Who benefits from intestate succession?
Probate & inheritance process
Find out now about the most important issues in contentious probate and inheritance proceedings in Italy: let us convince you of our comprehensive range of services.
Real estate donation
Find out now about the most important questions regarding the gift of real estate in Italy: What must a gift agreement contain? How high are the tax-free amounts in Italy?
Inheritance tax
Find out now about the most important questions regarding inheritance tax in Italy: In which cases does Italian inheritance tax apply? How high are the tax-free amounts in Italy?
Your specialist for inheritance law
Att. Prof. (GTU / Georgien) Dr. phil. Stephan J. Lang
- Lawyer and specialist lawyer for inheritance law
- Certified executor (AGT) and mediator
- Visiting professor at the GTU /Tbilisi/Georgia (2013 – 2019)
- Member of the German-Italian Lawyers’ Association
- Office location: Munich
- Area: Rome
- Tel.: +49 (0)172 / 923 1838
