Two features of Italian law surprise almost every American heir. First, succession is automatic — the estate passes at death, and you may already be an owner without knowing it, with the tax obligations that come with it. Second, Italy reserves fixed shares for close family (legittima) that a will cannot defeat. Together they mean that doing nothing is itself a decision, and usually an expensive one.
Which law governs the estate
Since 2015, EU Regulation 650/2012 generally points to the law of the deceased's habitual residence, with the option to have chosen their nationality's law in the will. For an American who lived in the United States but owned property in Italy, the answer is frequently counter-intuitive and always worth establishing in writing before anyone signs anything.
We give you a reasoned opinion on the governing law, the reserved shares, and what your US will actually achieves over the Italian assets.
The filing with a deadline
The dichiarazione di successione must be filed with the Italian revenue agency within twelve months of death, whether or not you intend to keep the property. Late filing carries penalties; failure to file blocks any sale and freezes the bank accounts.
We prepare and file it, pay the mortgage and cadastral taxes, update the land registry into the heirs' names (voltura catastale), and unlock the Italian bank accounts.
- Succession declaration and tax payment within twelve months
- Cadastral transfer into the heirs' names
- Release of Italian bank and postal accounts
- Acceptance or renunciation of the estate — and beneficio d'inventario where debts are suspected
- Italian tax code for every heir, wherever they live
When the heirs do not agree
Undivided property among five cousins in three countries is the most common Italian inheritance problem we see. Nobody can sell, nobody wants to pay the taxes, and one of them lives in the house.
We negotiate the division, and when negotiation fails we bring the divisione giudiziale — the court-ordered partition or judicial sale that ends the deadlock. Where a reserved share was cut out, we bring the action to reduce the gift or legacy that did it.
Planning it properly, before it becomes a problem
If you own Italian assets, a coordinated pair of wills — one for each jurisdiction, drafted so they do not revoke each other — will save your family years. We also advise on trusts recognised in Italy, the patto di famiglia for business succession, lifetime gifts and the Italian inheritance tax rates, which remain among the lowest in Europe.
Questions we are asked about this
Is Italian inheritance tax high?
No — it is unusually low by European standards, with substantial exemptions for spouses and children. The cost of an Italian estate is normally in the process and the delay, not the tax.
Can I simply refuse an inherited property?
Yes, by formal renunciation before a notary or court officer, but it must be done properly and it is generally all-or-nothing. Accepting informally — by collecting rent, for example — can bind you to the estate's debts.
Nobody has registered the property since my grandfather died. Can that be fixed?
Usually yes. We reconstruct the chain of successions, file the missing declarations and bring the registry up to date. It is common and it is solvable.