What is the reduction action in Italian succession?
To prevent anyone from circumventing the rights of legitimate heirs by gifting all or part of their assets while they are still alive, the law also provides for the possibility of exercising the reduction action against gifts, following the death of the donor (art. 555 of the Italian civil code).
In fact, to establish what assets belong to the legitimate heirs, the estate existing at the moment of death (relictum) is added to any gifts (donatum) made while the decedent was still alive. The forced quota is calculated on the total sum (relictum + donatum), and if the remaining assets do not suffice to satisfy the legal rights of the legitimate heirs, they may request the reduction of testamentary dispositions and gifts, starting with the most recent ones. As a result of the reduction action, the assets of the donations must be returned, in whole or in part, to the legitimate heirs, not only by the person who has received the gift, but also from any subsequent buyers of the assets in question.Read more
Inheritance tax varies by State and in this post we will see how it is calculated in Italy
When a person decides to transfer the ownership of a property to a family member by way of a Will, the former bears the immediate notarial costs of the instrument, while the latter pays any tax related to the act of inheriting a property. Inheritance tax varies by State and we will see how it is calculated in Italy, how it works, how much is paid on inherited assets. We will look at allowances, what percentage is inheritance tax, the mortgage and cadastral taxes and how the cost is calculated.Read more
If you die as a resident in Italy, Italian succession law will dictate how your worldwide movable assets (i.e. bank accounts, shareholdings, personal items etc) and Italian immovable assets (i.e. a property) will pass on your death.
If you are resident in another country, Italian law will only dictate how your Italian immovable assets pass on your death.
Whereas, English law, which is based on Common Law, allows you to leave your assets to whomever you choose, Italian law, which is based on Civil Law, does not give you complete testamentary freedom.Read more
Zes-Aas – 10 years tax-free for pensioners in Italy
Italian government plans 10 years tax-free for pensioners relocating to Sicily, Sardinia or Calabria
You may have heard that the Italian government is preparing to discuss a proposal to repopulate southern Italy and revitalise its economy? The proposal comes from Alberto Brambilla, pension expert and adviser to Deputy Prime Minister Salvini.
The plan would be to offer ten years tax-free for Italian and foreign retirees relocating their tax residence to Sicily, Sardinia or Calabria. Pensioners would be required to live in participating municipalities for at least six months and one day per year to qualify for the scheme. Sicily, Sardinia and Calabria would be the first three areas of southern Italy to pilot the project. Read more
Civil Unions The so-called, Legge Cirinnà, passed on 20 May 2016, regulates and recognises civil unions between same-sex couples, giving them the right not to be discriminated against. How can a civil union be made? Same-sex people of 18 years and over, m ay enter into a civil union. How? By going before the local […]
Renouncing an Italian inheritance Is it possible to renounce an Italian inheritance? Receiving an Italian inheritance does not always represent an advantage. Due to important legal ramifications, it is a matter which you should carefully evaluate. Accepting an inheritance also implies becoming responsible for the decedent’s debts. Heirs, therefore, run the risk of paying off […]