This article was translated automatically from Italian.
INHERITING PROPERTY AND THE DECLARATION OF SUCCESSION: A GUIDE TO HOW IT WORKS
The declaration of succession is an instrument of Italian civil law used to declare to the tax authorities the extent of the assets held by a deceased person.
More precisely, it is a declaration that the heirs or legatees of a deceased person are required to submit to the competent Agenzia delle Entrate office within 12 months of the death, if the deceased left behind even just one property or monetary assets worth at least 100,000 euro.
In the case of property, after the submission of the declaration of succession it is necessary to carry out the cadastral transfer of the properties in favour of the heirs or legatees, in the correct proportions.
It is compulsory because it allows the State to apply the relevant taxes due, and therefore has only a tax value.
Online declaration of succession and forms
The declaration can be submitted directly by the taxpayer (that is, the heirs or legatees) through the online services of the Agenzia delle Entrate website, where you will also find the pre-filled forms. It can also be submitted through an authorised intermediary or directly at the competent office of the Agenzia delle Entrate. Here you can find a sample of a completed declaration of succession.
Declaration of succession: who can submit it?
As we said, the declaration of succession has only a tax value for the State, which has to collect the taxes due. Moreover, when a person dies, the State already knows by law who the future heirs of the property left by the deceased will be.
They are the people named in the will of the deceased; in the absence of a will, they will be identified according to the rules of the Civil Code and will be referred to as “potential heirs”. When there is no will, the inheritance passes by law to the spouse, the children and relatives up to the sixth degree. In the absence of these persons, the inheritance passes to the State.
Potential heirs can accept the inheritance or renounce it; in the latter case, it does not fall within the declaration of succession and is therefore not subject to tax.
By law, the declaration of succession is single for the whole estate and obliges the legatees and all the heirs to submit it, even if they have not yet accepted the inheritance, provided they have not expressly renounced it.
The declaration can also be submitted by a single heir without consulting the others. It can therefore be signed by at least one of the heirs who are required to submit it. Accordingly, acceptance of the inheritance is a formality that must be completed by each individual heir, even after the declaration of succession has been submitted.
The substitute declaration of notoriety by the heirs
If the deceased leaves current accounts, interest-bearing bonds, securities deposits, safe deposit boxes or other private assets, a substitute declaration of notoriety by the heirs must be submitted. This is because, precisely, you come into contact with public offices or private parties.
This declaration is a written document in which the declarant (the person submitting the declaration of succession) certifies who the heirs of a given person are, stating their personal details. The form to be completed is available on the Agenzia delle Entrate website.
Copy of the declaration of succession: costs
To obtain a copy of the declaration of succession you simply need to go to the local office of the Agenzia delle Entrate or request it online on the Agenzia delle Entrate website, at a cost of 194.20 euro, which you will receive within 30 days.
The State is among the “heirs”: here is how much it “inherits”
Heirs and legatees must pay the Italian tax authorities tax at rates applied to the inherited share, divided as follows:
- 4% for transfers made in favour of the spouse or direct-line relatives (ascendants and descendants), to be applied to the total net value exceeding, for each beneficiary, the amount of 1 million euro;
- 6% for inheritances in favour of brothers or sisters, to be applied to the total net value exceeding, for each beneficiary, 100,000 euro;
- 6% for the share in favour of other relatives up to the third and fourth degree, to be applied to the total net value transferred, whatever the amount of the inherited value;
- 8% for transfers in favour of all other persons, to be applied to the total net value transferred, whatever the amount of the inherited value.
To all this must be added the taxes to be paid before submitting the declaration of succession:
- Mortgage tax of 2% on the gross value of the properties.
- Cadastral tax of 1% on the gross value of the properties.
- Stamp duty of 58.48 euro for the transfer of real estate.
- Special duties and mortgage registration fee.
Declaration of succession through a notary: the costs
The presence of a notary is not essential for drawing up a declaration of succession, which has tax purposes.
However, when the estate includes companies, substantial assets or assets allocated separately among the heirs, it is advisable to turn to a notary or a Caf or patronato.
The same applies when the composition of the assets is not well defined. The costs range from 300 euro for very low values to 900 for large estates.
Late declaration of succession and penalties
Once 12 months have passed since the death, if the declaration of succession has still not been submitted, you must proceed with voluntary rectification (ravvedimento operoso) and self-reporting to the Agenzia delle Entrate.
For a late declaration of no more than 30 days, an administrative penalty of 60 to 120% of the tax due applies or, if no tax is due, from 150 to 500 euro. In case of failure to submit the declaration, the penalty ranges from 120 to 240% of the tax due or, if no tax is due, from 250 to 1,000 euro.
When the delay concerns payment of the tax (to be made within 60 days following the request), a penalty of 30% of the unpaid amount applies.
Alessandro Langella
Founder of Pavé, Milan
He knows Milan through years of hands-on market experience, properties visited and neighbourhoods watched as they changed.
