'%3e%3cpath%20fill='%23eee'%20d='M167%200h178l25.9%20252.3L345%20512H167l-29.8-253.4z'/%3e%3cpath%20fill='%236da544'%20d='M0%200h167v512H0z'/%3e%3cpath%20fill='%23d80027'%20d='M345%200h167v512H345z'/%3e%3c/g%3e%3c/svg%3e)
Inheritance tax in Italy 2026
Italy's inheritance and gift tax is famously gentle: your spouse, children and parents each pay just 4%, and only on what exceeds a €1 million personal allowance.
Siblings pay 6% above €100,000 each; more distant relatives pay 6% and unrelated heirs 8%, both from the first euro.
If the deceased was Italian-resident the tax reaches worldwide assets; otherwise only Italian assets are in scope.
At a glance
- top rate
- 8% (unrelated beneficiaries, no allowance)
- entry band
- 4% above €1 million each for spouse, children, parents and grandchildren
- tax year basis
- Charged on the transfer, at death or gift
- filing deadline
- Estate declaration within 12 months of death
- residency basis
- Worldwide estate for Italian-resident deceased; Italian assets otherwise
- regime flag
- Disabled beneficiaries get a €1.5 million allowance
Rates
Inheritance and gift tax by relationship (2026)
| Beneficiary | Rate | Tax-free allowance (per person) |
|---|---|---|
| Spouse, children, parents, grandchildren | 4% | €1,000,000 |
| Brothers and sisters | 6% | €100,000 |
| Other relatives to the 4th degree; in-laws to the 3rd | 6% | None |
| Everyone else | 8% | None |
| Beneficiary with a severe disability (any relationship) | Relationship rate | €1,500,000 |
Thresholds & allowances
- Deductible liabilitiesDebts of the deceased, plus funeral and medical costs
Need officially dated documentation
- Excluded assetsItalian government bonds and equivalents
Bonds of European Economic Area (EEA) states are also outside the taxable estate
Residency
Residency trigger
Residence of the deceased (or donor) decides the reach: an Italian resident's worldwide estate is taxable, wherever the heirs live.
Non-resident treatment
For a non-resident deceased, only assets located in Italy are taxed — but they are taxed even if the heirs live abroad. Foreign inheritance tax paid on foreign property earns a credit against the Italian bill.
Notes
- Gift tax mirrors inheritance tax — same rates, same allowances — so lifetime giving does not dodge the charge, though the low rates make planning generous anyway.
- Since 2025, assets flowing out of trusts to beneficiaries fall squarely inside the tax.
- Real estate transfers also trigger separate registration duties (roughly 2%–3% of cadastral value), which often cost more than the inheritance tax itself.
- Practitioner commentary reports that from 2026 the gift and inheritance allowances may run separately, effectively doubling the shelter for close family — not yet confirmed against official texts, so plan on the single allowance.
FAQ
How much inheritance tax do children pay in Italy?
4%, and only on the amount each child receives above €1,000,000 — a €900,000 inheritance to one child is completely tax-free.
Does Italy tax inheritances from abroad?
If the deceased lived in Italy, yes — the worldwide estate is in scope at the usual 4%–8% rates, with a credit for foreign tax paid on foreign property. If the deceased lived abroad, only Italian assets are taxed.
Figures: tax year 2026, compiled from public sources. Not tax advice.