01How is Italian inheritance tax calculated?
For each heir, on their share of the estate: first the allowance is deducted, then the rate that depends on the relationship applies to the rest.
| Who inherits | Rate | Allowance per heir |
|---|---|---|
| Spouse, civil partner, children, parents and direct relatives | 4% | €1,000,000 |
| Brothers and sisters | 6% | €100,000 |
| Other relatives up to 4th degree and in-laws | 6% | none |
| Other people | 8% | none |
| Heir with a severe disability (Law 104/1992) | by relationship | €1,500,000 |
This is why spouses and children usually pay no inheritance tax: each share stays below one million euros. The taxes on property, however, are always due.
02What is a property worth for inheritance purposes?
The cadastral value is used, which is almost always much lower than the market value.
The cadastral value comes from the cadastral income shown in the land registry extract: the income is increased by 5% and multiplied by a coefficient that depends on the type of property. For homes the coefficient is 120, or 110 if the property becomes an heir’s first home; for garages, cellars and parking spaces it is 120, for offices 60, for shops 40.8.
03What other taxes are due on property?
Mortgage and cadastral taxes: 2% and 1% of the cadastral value, with a minimum of €200 each. If the property is the first home of at least one heir, they become fixed: €200 plus €200.
Small fixed costs for stamp duties and registry transfer fees are added, which the calculator does not include.
04When and how is it paid?
From the date of death, online only, directly or through a notary, accountant or tax assistance centre.
Since 2025 the heirs calculate the taxes in the return, no longer the Revenue Agency.
With form F24, also in instalments.
Gifts made during lifetime no longer reduce the inheritance allowance.
05And after the inheritance?
A realistic valuation, verified documents and a sale followed up to completion, even if the heirs live far away.
A shared valuation to allocate the properties among heirs, with equalisation payments if needed.
Renovate and let, or subdivide a large apartment.
Indicative estimate under the rules in force in 2026. It does not include deductible debts and funeral expenses, exempt assets such as government bonds, or special situations. The return should be checked with a notary or accountant.