How to pay taxes
Latest update: 12/12/2020
If you inherit a property, you must calculate and pay the following fees and taxes before submitting the declaration of estate:
- land registry
- stamp duty
- mortgage tax and special taxes (e.g. for mortgage formalities).
The amounts due must be paid by debiting a current account opened with one of the banks affiliated with the Revenue Agency or Poste Italiane SpA in the name of the declarant or the person in charge of submitting the declaration online. For this reason, the IBAN code of the account to be debited and the codice fiscale [tax code] of the current account holder must be stated when completing the declaration.
Inheritance tax: rates and allowances
Rates and allowances for inheritance and gift tax are established by Article 2(48) of Decree Law No 262 of 2006. In particular:
- 4% for transfers made to spouses or relatives in the direct line (of ascent and descent) to be applied on the total net value exceeding a share of EUR 1 million for each beneficiary
- 6% for transfers to brothers or sisters to be applied on the total net value exceeding EUR 100 000 for each beneficiary
- 6% for transfers to other relatives to the fourth degree or relatives-in-law to the third degree, to be applied to the total net value transferred, without application of any allowance
- 8% for transfers to all other persons to be applied to the total net value transferred, without application of any allowance.
An additional allowance of EUR 1.5 million (Article 2(49)(bis) of Decree Law 262/2006) is provided for transfers to people with a disability recognised as severe under Law No 104 of 1992.
How to pay inheritance tax
If the declaration is submitted to the Revenue Agency office, payment may be made at the bank, post office or collection agent using form F24, quoting the relevant tax codes. If the payment is made by debiting a current account, the appropriate form must be filled in and delivered to the office.
After receiving the declaration of estate, the relevant local Revenue Agency office sends the heir a settlement notice stating the inheritance tax.
Payment must be made by form F24 within 60 days of the date on which the settlement notice is served. Once this time limit has expired, interest on arrears will be payable in addition to fines.
Amounts over EUR 1 000 can be paid in instalments as follows:
- at least 20% of the amount must be paid within 60 days of being served with the settlement notice
- the remainder is paid in eight quarterly instalments (12 instalments for amounts over EUR 20 000), on which interest is due from the first day after payment of the initial instalment. The instalments must be paid by the last day of each quarter.
The right to pay by instalment will not be lost due to a ‘minor infringement’, i.e.:
- shortfall in the instalment payment amounting to a fraction not exceeding 3% and no greater in any event than EUR 10 000
- a delay of no more than seven days in paying a sum amounting to 20%.
The ‘minor infringement’ entitlement is also applicable to the lump sum payment.