Although Italy has, in the European Union, the sad primacy of the greatest tax burden on citizens, it is surprising to know that, at least until now, the inheritance tax is among the least burdensome of the countries of the European Union.

In fact, applying the current legislation in force in Italy, if heirs are the spouse or children, they enjoy an exemption of up to €1 million (per share) and a tax of 4 % for what exceeds the value of €1 million (per share).

This also makes it appropriate for Italians living abroad to plan their inheritance.

We remind Italians not resident in Italy, but resident in EU countries, the need to choose the Italian law as applicable law in the will,, otherwise the inheritance would be regulated by the residence Country.

It seems that the rules of inheritance may change with an increase of taxes in the near future.

It is therefore appropriate to exercise some caution and the solution is given by establishing a trust in Italy and confer the assets in the trust, thus obtaining, at the time of the transfer of assets in trust, the exemption up to €1 million per beneficiary of the trust.

It is not known whether, and when, the feared increase of the inheritance tax, will take place and time, however the prudence consists in anticipating the storm, and the trust can take a decisive role in the inheritance planning.


Milano, 6 July 2020

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The firm is based in Milan, but maintains also strategic offices in the North West (Bergamo), in the North East (Treviso) and in the South of Italy (Palermo).