- In the case of succession regulated by Italian law having inherited shares (corporation) or participation shares (of a limited liability company) raises the question whether and to what extent this share of the estate is also subject to inheritance tax. 

- The inheritance tax also applies to shares and participation shares and of course it applies with different rates, in relation to the degree of relationship of succession with the deceased, exactly:

  • Allowance up to EUR 1 million for each heir in case the heirs are the spouse or relatives in a straight line, and 4% on the value exceeding € 1 million for each heir;
  • 6% if heirs are brothers or sisters of the deceased, with allowance up to € 100,000 (one hundred thousand), for each heir (brother or sister)
  • 6% for other relatives up to the fourth degree or, related in a straight line, related in a collateral line, up to 3°degree
  • 8% for other persons not listed above.

- once the rate to be applied has been established, the tax base of the rate must be determined, that is to say, on what amount to apply the rate.

- For shares or securities listed on the stock exchange, the amount to be considered as the taxable amount for the application of the rate shall be the average of the compensatory prices or prices of the last trimester preceding the opening of the succession.

- For unlisted shares, or for participation shares, the amount to be taken into consideration is the proportional value (i.e., the number of shares in units), corresponding to the value at the date of the opening of the succession, the company’s net worth, resulting from the last published balance sheet or the last inventory drawn up and endorsed.

- Strange as it may seem, the Italian inheritance tax is one of those which has been less burdensome until now than in other EU countries.


Milano, 12 March 2020 



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