Inheritance tax in Italy
In Italy inheritance tax is levied on an acquisition due to death and gift tax is levied on a gratuitous gift between the living. The legal basis is the Inheritance and Gift Tax Act ( Imposta sulle successioni e donazioni ).
Abolition and reintroduction of the tax
During the first decade of this century, Italian inheritance and gift tax law underwent several profound changes. At the turn of the century, the Inheritance and Gift Tax Act of October 31, 1991 (Act No. 346/1990) applied, which charged the entire estate with an estate tax of up to approx. 20% on the one hand and an inheritance tax on the other, which was levied after the The amount and the degree of relationship of the purchaser to the testator or donor. In 2000 the tax rates had already been drastically reduced (to 4% to 8%), before the tax was completely abolished in 2001 as part of the 100-day contract announced by Prime Minister Silvio Berlusconi before his re-election . An increase in value tax for properties has also been abolished.
During the term of office of the successor government under Romano Prodi (2006–2008), inheritance and gift taxes were restored with effect from January 1, 2007 through the laws of November 24, 2006 (No. 286) and December 27, 2006 (No. 296) introduced as outlined in this article. Her future fate, however, remains uncertain.
Tax liability and inheritance
The inheritance and gift tax is now designed as an inheritance tax, whereby the acquisition is taxed by the purchaser and not by the estate (so-called estate tax). All assets that are transferred or transferred are affected by the tax. This also applies to assets located abroad if the testator or donor is resident in Italy for tax purposes. If the testator or donor is only subject to limited tax liability because he is domiciled outside Italy, only the assets located in Italy are subject to tax. Land is taken into account at the cadastral value, listed securities at the stock market value, otherwise the market value applies.
Tax rate
The tax is calculated as a percentage of the value of the estate or donated property. For this purpose, the heirs (donation recipients) are divided into three groups:
- Spouses and children as well as children's children (grandchildren)
- Relatives in the secondary line up to the fourth degree as well as those by marriage to the testator (donor)
- other relatives and unrelated persons
The tax rates are fixed (without progression) for the first 4%, the second 6% and the third group 8%.
Each heir in the first group is also granted an allowance of 1 million euros, siblings (group 2) receive an allowance of 100,000 euros. Disabled persons (within the meaning of the law of February 5, 1992 n.104) are entitled to an allowance of 1.5 million euros in all groups.
Corporate succession
Transfers from Italian companies to descendants (children or grandchildren) are entirely exempt from inheritance and gift tax provided that the acquirer holds the stake in the company for at least five years. In the case of corporations, more than 50% of the voting rights must have been transferred to the purchaser to ensure a controlling majority. If the retention period is not adhered to, the discount no longer applies retrospectively and a penalty surcharge of 30% is levied.
Procedure
Heirs must submit an inheritance tax declaration to the responsible tax office within six months, in which information about the persons concerned must be given and the relevant documents must be submitted.
Double taxation
As a result of the taxation of world wealth, double taxation can occur in Italy and in the state in which the foreign parts of the estate are located. Italy has no double taxation treaty avoiding this with either Germany or Switzerland . However, the inheritance or gift tax incurred abroad can be offset against the corresponding Italian tax incurred for the same acquisition.
Additional taxes on property acquisition
If the estate or object of the donation includes properties located in Italy, the general transfer tax ( Imposta di trascrizione or Imposta ipotecaria ) of 2% and the cadastral tax ( Imposta catastrale ) of 1% also apply . If the property is the main residence of the testator or donor ( prima casa ), the transfer and cadastral tax is only levied at a fixed amount of 168 euros, regardless of the family relationship.
See also
Individual evidence
- ↑ See: Holger Sprengel: The taxation of German-Italian inheritance and gift cases . ( International Inheritance Tax Law and Estate Planning , Vol. 8), 2000, Verlag Dr. Otto Schmid, ISBN 3-504-62408-6 , p. 140
- ↑ Edila 2000: Donazioni e successioni (Italian) ( Page no longer available , search in web archives ) Info: The link was automatically marked as defective. Please check the link according to the instructions and then remove this notice.
- ^ BDI / vbw / Deloitte series on inheritance tax reform, edition VI, September 24, 2007, international comparison, competition for locations, p. 6., PDF
- ↑ a b Table on the new regulation of inheritance and gift tax (Italian), PDF ( Memento of the original dated February 6, 2009 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice.
- ^ BDI / vbw / Deloitte series on inheritance tax reform, edition VI, September 24, 2007, international comparison, competition for locations, p. 6 f., PDF
- ↑ Ital. Inheritance tax, addresses, etc.
literature
- Troll-Gebel-Jülicher: Inheritance Tax and Gift Tax Act , loose-leaf commentary, 37th edition 2009, Vahlen, ISBN 978-3-8006-2402-7 , § 21 ErbStG marginal no. 106 (Italy)
