Understanding Italian Inheritance Law for Expats

Italy's timeless charm attracts thousands of expats and high-net-worth individuals every year. Whether you’ve decided to make Italy your new home or invest in its real estate market, it’s important not to overlook a key aspect of life planning: inheritance law.

Italy has a very distinct set of rules governing succession and estate distribution, and these rules apply differently depending on whether you're considered a resident, a citizen, or simply own assets in the country. For expats, the consequences of not planning ahead can be significant—especially when wealth is involved.

This guide will walk you through the essentials of Italian inheritance law, its implications for foreign nationals, and how to plan effectively.

1. Forced Heirship: You Can’t Leave It All to Whom You Want

Italy follows a civil law system that includes “forced heirship” rules. This means a portion of your estate must be reserved for close family members—no matter what your will says.

These "legittimari" (forced heirs) typically include:

• Your spouse

• Your children

• In some cases, your parents

This rule applies to all Italian residents and to foreigners owning assets in Italy, unless a specific choice of law is made (more on that below).

For example, if you own a villa in Tuscany and you pass away, your children and spouse may have automatic rights to portions of that property—even if your foreign will states otherwise.

2. Choice of Law: A Crucial Tool for Expats

Since 2015, the EU Succession Regulation (650/2012) allows foreign nationals living in Italy to elect the law of their nationality to govern their estate. This is a game-changer for expats who want to avoid Italy’s forced heirship rules.

However, this election must be clearly stated in a will. Without it, Italian law will apply by default.

If you're a UK or US citizen living in Florence or Milan, you can choose for British or American inheritance law to apply—potentially giving you more flexibility in how your assets are distributed.

This choice must be precise and legally valid, ideally drafted with both an international lawyer and an Italian notary to ensure it’s recognized in practice.

3. Real Estate Triggers Italian Jurisdiction

Even if you don’t live in Italy, owning real estate within the country can subject you to Italian succession law—at least for those assets.

This means that if you have a second home in Lake Como, Italian law might apply only to that property, even if your broader estate follows another jurisdiction. It's a fragmented system that needs careful planning, especially if your wealth is spread across multiple countries.

Estate planning tools like trusts or holding companies can help simplify or shield the structure—though Italy has complex rules around both. Professional guidance is crucial.

4. Taxation of Inheritances: Still Favorable, For Now

One of the lesser-known facts about Italian inheritance law is that inheritance tax is relatively low—at least for now.

Spouses and children pay just 4% on the inherited amount above €1 million. For other relatives, the tax ranges from 6% to 8%, with lower or no exemptions.

That said, foreign nationals must still consider double taxation agreements, especially between Italy and countries like Switzerland, the UK, and the US. In some cases, you may end up paying inheritance taxes twice if your assets aren’t structured correctly.

A well-drafted cross-border estate plan can prevent this and significantly reduce the family’s tax burden.

5. Practical Steps: What Should Expats Do?

If you live in Italy or own property here, your succession plan should include:

• A will that clearly elects the applicable law (if you want to avoid forced heirship)

• A detailed inventory of your Italian and foreign assets

• Coordination with both local and international advisors

Also, be mindful of how your assets are held. Joint ownership, trusts, or companies may not function the same way under Italian law as in your home country.

Finally, don’t rely solely on your home country’s legal documents. A foreign will that isn’t translated or notarized for Italy may cause delays or even be challenged in Italian courts.

Conclusion: Plan Now, Not Later

Dealing with inheritance issues is never pleasant—but it becomes even more complex in a cross-border setting like Italy. The mix of civil law, forced heirship, EU regulations, and tax implications means that expats must approach estate planning with extra care.

But it’s not all bad news. With the right planning, tools like choice of law, life insurance, and international wills allow you to create a structure that reflects your wishes—and protects your loved ones.

Need Help Navigating Italian Inheritance Law?

At Knotted, we help expats, investors, and international families design succession plans that are not only compliant—but smart and future-proof. Whether you need a bilingual will, a tax-efficient structure, or advice on cross-border real estate, our team is ready.

📧 Email us at: info@knotted.ch

📱 WhatsApp us: +41 76 771 30 22

Let us help you safeguard your legacy—on your terms.