DECLARATION OF SUCCESSION (SO CALLED “DICHIARAZIONE DI SUCCESSIONE“)
WHAT IT IS: The declaration of succession is a tax declararion in order to communicate to the Italian Revenue Office what is the inheritance of the deceased so that the Office can calculate the inheritance taxes for the heirs. It must be submitted in all cases in which the deceased person – Italian or foreign citizen- has assets in Italy, even if the heirs reside abroad and/or are foreign citizens.
WHEN: The declaration of succession must be submitted within 12 months of the opening of the succession which normally coincides whit taxpayer’s death.
It is compulsory to make the declaration of succession when in the estate there are one or more properties or real estate rights (it is also possible to request, at the same time as the presentation of the declaration of succession, the cadastral transfer with the consequent updating of the Land Registry) or if the value of the assets exceeds € 100,000.00. When there is an obligation to submit the declaration of succession, normally the same is also required by banks and Poste Italiane for the release of sums present on current accounts / securities deposits that are blocked following the notification of death of the owner.
HOW: As of 01/01/2019, it is mandatory to submit the declaration of succession electronically. The firm is qualified for this activity. Request a quote using the contact form on the website.
WHAT TO ENTER: In the declaration of inheritance are shown the assets and liabilities reported by the heirs: the firm supports customers in the reconstruction of the estate that can be particularly complicated especially if you had no contact with the deceased or if you live abroad. Please note that for the Italian citizen residing abroad or for the foreign citizen residing abroad with assets in Italy, in the declaration of succession must be indicated only the assets present on Italian territory.
TAXES: there are two types of taxes:
1) the mortgage and cadastral taxes and consequential taxes, which concern the property that has been inherited and must be paid at the time of the presentation of the declaration of succession: when preparing the declaration of succession the IBAN code of the bank account from which the Revenue Agency system will take the cadastral, mortgage, stamp duty, Conservatory and special taxes must be inserted. The mortgage and cadastral taxes are respectively 2% and 1% of the cadastral value of the property (except in the case where an heir may exercise the so called first home option with consequent abatement of taxes in favor of all possible coheirs).
2) Inheritance tax: is a tax that is paid on what is received in inheritance. Once the declaration of inheritance has been telematically filed, the Italian Revenue Office, having made the necessary checks, sends to the heirs a communication in which it quantifies the inheritance tax, which is therefore a different and additional tax compared to the cadastral and mortgage tax (which are paid immediately but only if one or more properties are inherited).
The inheritance tax varies according to the degree of kinship. In particular, there are exemption thresholds and increasing percentages based on the degree of kinship.