Inheriting property in Italy: what heirs abroad need to know

Which law governs the inheritance

For deaths from 17 August 2015, the European Succession Regulation (EU) 650/2012 applies in Italy. As a general rule, the whole inheritance is governed by the law of the country where the deceased had their habitual residence at the time of death, wherever the assets are, even when that country is outside the European Union. A person can instead choose, in their will, the law of the country of their nationality.

This is the first point to establish, because it decides who the heirs are and what share each one receives. Where the law of a country outside the EU applies, its own rules may in some cases refer back to Italian law for property located in Italy: this has to be checked case by case.

Accepting, or refusing, the inheritance

Where Italian law governs the inheritance, heirs do not become owners automatically: they have to accept it. Acceptance can be express, or implied by conduct that only an heir would be entitled to engage in, such as selling property of the estate. The right to accept lapses ten years after the death, but anyone with an interest can ask the court to set a shorter deadline.

An heir who is unsure whether the debts exceed the assets can accept with the benefit of inventory: the heir is then liable for the debts of the estate only up to the value of what they inherit. An heir can also refuse the inheritance, by a formal declaration before a notary or the clerk of the competent court. These choices have formal requirements and, in some situations, short deadlines: an heir who is in possession of estate assets, for example, must draw up an inventory within three months. They should be made before acting on the assets.

The Italian succession declaration

When the inheritance includes assets in Italy, a succession declaration (dichiarazione di successione) must, as a rule, be filed with the Italian Revenue Agency within twelve months of the death. Where the deceased was not resident in Italy, Italian inheritance tax is due only on the assets located in Italy. The declaration is also the basis for updating the property records and for releasing bank accounts.

As a rule, banks release funds held in Italy only after receiving the declaration and the documents proving who the heirs are. Documents issued abroad, such as death certificates or grants of probate, usually need an apostille, depending on the country, and a sworn translation.

Selling, keeping or dividing the property

Once the succession is settled, the heirs own the property together until it is divided. They can agree to sell it, to assign it to one of them against payment to the others, or to rent it out. Under Italian law, if they do not agree, each heir can ask the court to divide it. A property that cannot be conveniently divided is, as a rule, allotted to an heir entitled to one of the largest shares, who pays the others the difference; if no heir wants it, it is sold at auction.

Disagreements between heirs living in different countries are common. In Italy an attempt at mediation is required before going to court over an inheritance or a division, and many disputes are settled at that stage.

Working with professionals in two countries

A cross-border inheritance usually involves a lawyer or notary in your home country and professionals in Italy. Where the succession is also handled in another EU country, a European Certificate of Succession can be used to prove the status of heir in Italy. We coordinate with your advisers at home and handle the Italian side in English.

Frequently asked questions