Inheritance tax Sicily

Application of the Sicilian inheritance tax

The regulations on Italian inheritance tax apply if

• the deceased is resident in Italy for tax purposes or
• the assets to be transferred are located in Italy

As the regulations on Italian inheritance tax change rapidly from time to time, the regulations at the time of the testator’s death are decisive.

General allowances

The tax-free amounts depend on the relationship of the heir to the testator. 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 testator.

German inheritance tax for inheritances in Sicily

If the acquirer or the testator was Italian or if the estate includes assets in Italy, German inheritance tax may be payable in addition to Italian inheritance tax. In such cases, double taxation can often be avoided or mitigated by offsetting.

Obligation to report and declare taxes to the German tax office

German heirs must report their acquisition to the German tax office within three months. It is important to note that the tax obligation does not only arise when you can dispose of the estate, but already when you become an heir. The tax office can then request an inheritance tax return, which must be submitted within a period of at least one month. This deadline can be extended upon request.

When inheritance tax is due

In Italy, inheritance tax must be paid no later than twelve months after the death of the deceased.