Do I pay inheritance tax?
Conditional on the value and relationship: you pay only above the allowance. The basis is D.Lgs. 346/1990. Rates and allowances: spouse and children (direct line) pay 4% only on value exceeding €1 million per beneficiary; siblings pay 6% above €100,000 each; other relatives up to the 4th degree pay 6% with no allowance; unrelated persons pay 8% with no allowance. With severe disability (L. 104) the allowance is €1.5 million. On real estate you also pay the mortgage (2%) and cadastral (1%) taxes. The succession declaration is due within 12 months; since 2025 the heir self-assesses and pays. In short: it depends, and for children it's often zero.
📋 The rules
- Spouse and children: 4% above €1 million each
- Siblings: 6% above €100,000 each
- Other relatives: 6%; unrelated 8% with no allowance
- Severe disability: allowance €1.5 million
- Declaration within 12 months; self-assessment since 2025
🔓 Exceptions
- No declaration if estate ≤€100,000, no real estate, to spouse/children
- TFR, life-insurance payouts and government bonds generally exempt
- On real estate: mortgage 2% and cadastral 1% (or €200 if first home)
⚠️ Penalties & fines
Often for children and the spouse the tax is zero (€1 million allowance each): you pay only on the excess, at 4%. On real estate the mortgage (2%) and cadastral (1%) taxes still apply. The succession declaration is due within 12 months of the succession opening; since 1 January 2025 the heir computes and pays the tax themselves (self-assessment), within 90 days of the deadline. Late or omitted declaration brings sanctions and interest. Beware a myth: "inheritance tax in Italy is huge" is false — it's among the lightest in Europe: a child inheriting under €1 million pays zero inheritance tax. To handle it: file the declaration within 12 months and check the real estate (mortgage and cadastral).
📎 Official sources
- Agenzia delle Entrate — rates and allowances →
- Agenzia delle Entrate — succession declaration →
- D.Lgs. 346/1990 (and D.Lgs. 139/2024) →
❓ Frequently asked
Do I pay inheritance tax?
It depends on the estate's value and the relationship. Spouse and children pay the 4% tax only on the part exceeding €1 million per beneficiary. Below that allowance, no inheritance tax is due. Siblings pay 6% above €100,000, while unrelated persons pay 8% with no allowance.
How big are the allowances?
For the spouse and children in the direct line the allowance is €1 million per beneficiary. For brothers and sisters it's €100,000 each. For more distant relatives and unrelated persons there's no allowance. For an heir with severe disability, the allowance rises to €1.5 million.
By when must the succession declaration be filed?
The succession declaration must be filed, electronically, within 12 months of the succession opening, i.e. the date of death. Since 1 January 2025, the heir computes and pays the tax directly by self-assessment, without waiting for the Agenzia's notice, within 90 days of the deadline.
Do you pay anything on real estate too?
Yes. Besides any inheritance tax, on real estate in the estate you pay the mortgage tax, at 2%, and the cadastral tax, at 1%, calculated on the cadastral value. If the first-home reliefs apply, these two taxes are reduced to a fixed €200 each.
Is it true you pay a lot in Italy?
No. Italian inheritance tax is among the lightest in Europe. Thanks to the €1 million allowance for spouse and children, in very many cases these heirs pay no inheritance tax at all, only the mortgage and cadastral taxes on any real estate. It's a myth that inheritance taxation is high.
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