If you own real estate, bank accounts, or financial interests in Italy, Italian succession law applies to those assets — regardless of your nationality or country of residence. Under EU Regulation 650/2012 (Brussels IV), you may elect the law of your country of habitual residence, but this election must be explicitly stated in a valid Italian will. Without one, Italian intestate succession rules apply by default — often producing outcomes that conflict entirely with your intentions and your family’s expectations. MG Law assists international clients from the US, UK, Canada, Australia, Germany, Switzerland and beyond in structuring their Italian estate before a crisis occurs: remotely, in English, from our offices in Italy.
Does Italian Inheritance Law Apply If I'm a Foreign National?
Yes — and this surprises most of our clients. Italian succession law (governed by the Italian Civil Code, Articles 456–564, and D.Lgs. 346/1990) applies to all assets physically located in Italy, regardless of the owner’s nationality or country of residence. Your Italian property, Italian bank accounts, Italian company shares, and any other Italian-situs assets are subject to Italian succession rules when you die — full stop.
This is not a technicality. It means that a US will drafted in New York, a UK will signed in London, a Canadian will prepared in Toronto, an Australian will executed in Sydney, or a German will notarised in Berlin does not automatically govern what happens to your Italian villa, apartment, or investment property. Italian law steps in — whether you planned for it or not.
The EU Regulation 650/2012 (Brussels IV) — what it means for you
Since August 17, 2015, EU Regulation 650/2012 allows EU-resident foreign nationals to elect the law of their nationality to govern their entire estate. This election must be made in writing — typically in a notarial will (testamento pubblico) or a holographic will (testamento olografo). If no election is made, Italian law applies automatically to all Italian-situs assets.
Important for non-EU citizens: Citizens of countries outside the EU — including the United States, the United Kingdom, Canada, Australia, and others — are not automatically bound by Brussels IV in the same way EU nationals are. When a non-EU citizen owns property in Italy, the interaction between Brussels IV and the succession laws of their home country remains complex and often unresolved by treaty. This creates a specific planning gap that requires coordinated legal advice in both jurisdictions — which is precisely what MG Law provides through our multilingual team and our Rome and New York offices.
| Relationship to deceased | Tax rate | Tax-free allowance per heir | Notes |
|---|---|---|---|
| Spouse | 4% | €1,000,000 | On amount exceeding allowance |
| Children — natural or adopted | 4% | €1,000,000 | On amount exceeding allowance |
| Other direct descendants | 4% | €1,000,000 | On amount exceeding allowance |
| Siblings | 6% | €100,000 | On amount exceeding allowance |
| Other relatives (up to 4th degree) | 6% | None | On full taxable amount |
| Unrelated parties | 8% | None | On full taxable amount |
| Disabled heirs (any relation) | 4% | €1,500,000 | Enhanced allowance |
Source: D.Lgs. 346/1990, as amended by D.L. 262/2006 — rates applicable 2025
How does this compare to other countries?
Italian inheritance taxes for direct family members — 4% above a €1 million per-heir exemption — are generally favorable compared to many other jurisdictions. The US federal estate tax exemption for 2025 is approximately $13.61 million per individual, making Italian rates relatively low for mid-sized estates. For UK clients, the standard inheritance tax rate is 40% above a £325,000 threshold — significantly higher than Italy’s 4% for direct heirs. For German clients, the equivalent rate for children is 7–30% depending on the estate value, with exemptions of €400,000 per child. Italy’s bilateral estate tax treaties — including with the United States (1984) — provide mechanisms to avoid double taxation on the same assets.
The cadastral value rule — a planning advantage most heirs don't know
For real estate, Italian inheritance tax is calculated not on market value but on the valore catastale (cadastral value) — a government-assessed figure that is typically 30% to 50% below current market value. On a property worth €800,000 at market, the taxable base for inheritance purposes may be closer to €400,000–€500,000. This is a material planning advantage for property-heavy estates that most foreign heirs — and many advisors outside Italy — are entirely unaware of.
Italian vs International Estate Planning: A Side-by-Side Glossary
Frequently Asked Questions: Italian Inheritance for Foreigners
Do I need an Italian will if I'm a foreign national who owns property in Italy?
Yes. While a foreign will may be technically recognizable in Italy, a dedicated Italian will is strongly recommended in almost every case. It avoids foreign probate entirely, allows you to formally elect your national law under EU Regulation 650/2012 (Brussels IV), and is registered in Italy’s National Will Registry for immediate enforcement upon death. Without a dedicated Italian will, Italian intestate succession rules apply by default to your Italian assets — regardless of what your home country will says.
What is the Italian inheritance tax rate for non-residents in 2025-26?
Italian inheritance tax ranges from 4% to 8% depending on the relationship between the deceased and the heir. Spouses and direct descendants pay 4% on amounts exceeding a €1,000,000 tax-free allowance per heir. Siblings pay 6% on amounts above €100,000. Unrelated beneficiaries pay 8% with no exemption. For non-resident heirs, only Italian-situs assets are subject to Italian inheritance tax — not worldwide assets. Real estate is taxed on cadastral value, which is typically 30–50% below market value.
Can I choose my home country's law to govern my Italian estate?
Under EU Regulation 650/2012 (Brussels IV), you may elect the law of your nationality to govern your succession — but this election must be made expressly in a valid will. Citizens of non-EU countries (US, UK, Canada, Australia and others) face an additional layer of complexity, as their home country’s succession laws do not automatically override Italian forced heirship rules. Italian courts retain the right to apply the ordre public exception to protect the forced shares of Italian-resident heirs, even when a law-of-nationality election has been made. This requires case-by-case legal analysis regardless of your nationality.
How long does Italian probate (successione) take for foreign heirs?
Italy does not have court-supervised probate equivalent to US or UK probate. Italian succession is primarily a notarial and administrative procedure. The mandatory dichiarazione di successione must be filed with the Agenzia delle Entrate within 12 months of death. Property transfer registrations typically take 3 to 6 months from the filing date, depending on the complexity of the estate. MG Law manages the entire process remotely on behalf of foreign heirs..
Does Italy tax inheritance received by non-resident heirs?
Yes, but only on Italian-situs assets. Italy applies a territorial basis for inheritance tax when the heir is a non-resident: only assets physically located in Italy — real estate, Italian bank accounts, Italian company shares — are subject to Italian inheritance tax. The US–Italy Estate Tax Treaty of 1984 provides mechanisms to avoid double taxation on assets already subject to Italian tax.
What is the deadline for the Italian dichiarazione di successione?
The dichiarazione di successione must be filed with the Agenzia delle Entrate within 12 months of the date of death. Late filing triggers penalties starting at 30% of unpaid taxes, plus compounding interest. MG Law handles preparation and submission on behalf of foreign heirs entirely remotely, including all required Italian translations and supporting documentation.
Can I disinherit my children under Italian law?
No, not entirely. Italian forced heirship law (legittima) guarantees children a protected minimum share of the estate that no will can eliminate. With one child, the protected share is one half of the estate. With two or more children, it rises to two thirds. A child may be excluded from the freely disposable portion of the estate but never from the legittima. Formal disinheritance (diseredazione) is possible only in very narrow circumstances — typically serious criminal conduct against the testator — and is rarely upheld in practice.
Do I need to travel to Italy to handle inheritance procedures as a foreign heir?
No. MG Law manages Italian inheritance and succession procedures entirely remotely for foreign clients. Through a Power of Attorney (procura speciale), our attorneys act on your behalf for all filings, notarial acts, property transfer registrations, and administrative procedures with the Agenzia delle Entrate. Many of our clients complete the entire succession process without ever traveling to Italy.
What is the biggest mistake foreigners make when it comes to Italian inheritance?
The most common and most costly mistake is assuming that their home country’s will automatically governs their Italian assets. This is almost never the case. Italian succession law applies to Italian-situs assets regardless of where you live, where you were born, or what your will says. The second most common mistake is waiting. An Italian will takes less than two weeks to execute through MG Law — the consequences of not having one can take years and thousands of euros to resolve
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Protect Your Italian Estate Before the Law Decides for You
If you own property, bank accounts, or financial interests in Italy, the best time to structure your estate is before you need it. MG Law has assisted international clients from across the globe — investors, expats, retirees and families from the US, UK, Canada, Australia, Germany, Switzerland and beyond — in building Italian estate plans that work across jurisdictions: legally sound, tax-efficient, and enforceable without your heirs ever setting foot in Italy.
- Full remote management — no travel to Italy required
- Consultations in English and Italian
- Coordination with your attorney in your home country
- Members: American Club of Rome · Italy-America Chamber of Commerce · IACCW
