Inheriting property in Italy

Does Italian Law Always Apply to Property Located in Italy?

One of the most common misconceptions is that an Italian property is always inherited under Italian law.

In many cases, this is not correct.

Regulation (EU) No. 650/2012 applies, in the Member States bound by it, to successions opened on or after 17 August 2015. Ireland and Denmark are not bound by the Regulation, and the United Kingdom was not bound by it while it was a Member State. The Regulation's rules on applicable law have universal application, so the law designated by those rules may also be the law of a non-EU State.

Today, the law applicable to the succession is generally determined by the deceased's habitual residence at the time of death, unless a valid choice of law has been made in accordance with the Regulation.

This means that a British, American, Canadian, Australian or Swiss citizen who had established his or her habitual residence in Italy may, depending on the circumstances, have an estate governed by Italian succession law, while an Italian citizen who had permanently settled abroad may find that the succession is governed by the law of another country.

The location of the property is therefore only one element of a much broader legal analysis.

What Is Habitual Residence?

The concept of habitual residence is central to modern international succession law, yet it is frequently misunderstood.

It is not simply the address appearing on an official register or a tax residence declared for administrative purposes.

Instead, the authorities must examine where the deceased had established the centre of his or her personal and family life during the years preceding death, taking into account all the relevant factual circumstances.

Among the factors that may be considered are:

• the duration and regularity of the deceased's presence in a particular country;
• family and social connections;
• professional and economic activities;
• the reasons for living in that country;
• the overall stability of those connections.

Someone who spent long periods abroad for work while maintaining close family and social ties with another country may not necessarily have transferred his or her habitual residence. Equally, a person who voluntarily moved abroad and established the permanent centre of his or her life there may well have done so, even if retaining property in the country of origin.

For this reason, determining habitual residence is often one of the most important aspects of an international succession.

Can You Choose Which Law Will Govern Your Estate?

Yes.

One of the most significant innovations introduced by Regulation (EU) No. 650/2012 is the possibility of making an express choice of law, commonly referred to in private international law as professio iuris.

A person may choose that the law of his or her nationality shall govern the succession, provided that the conditions established by the Regulation are satisfied.

This possibility can provide considerable legal certainty.

Without such a choice, determining the applicable law may require a detailed examination of the deceased's habitual residence and international connections. A valid professio iuris may instead establish the applicable legal system in advance, making future administration of the estate considerably more predictable.

For many international families, this represents an important element of long-term estate planning rather than simply a technical legal option.

Civil Law and Tax Law Are Two Different Questions

Another point frequently overlooked is that the civil law governing the succession and the tax rules applicable to the estate are not necessarily determined by the same legislation.

Regulation (EU) No. 650/2012 governs the civil aspects of the succession, such as identifying the heirs, determining their respective rights and establishing the law applicable to the estate.

Inheritance taxation, however, remains governed principally by the domestic tax legislation of the States concerned and, where applicable, by bilateral tax treaties.

As a result, the law determining who inherits may differ from the law governing the taxation of the inherited assets.

Understanding this distinction is essential in almost every international succession.

What Happens If the Estate Includes Property in Italy?

Where the deceased owned real estate in Italy, several practical steps will usually need to be considered.

Depending upon the circumstances, these may include:

• identifying the law applicable to the succession;
• determining the persons entitled to inherit;
• collecting the documentation required by the Italian authorities;
• preparing and filing the Italian Declaration of Succession where required;
• completing the cadastral updating connected with the succession and any separate Land Registry formalities required under Italian property law;
• dealing with banks or financial institutions holding assets in Italy;
• obtaining additional documents for use abroad, where necessary.

The precise procedure depends upon the countries involved, the nature of the assets and the legal characteristics of the estate.

For this reason, no two international successions are exactly alike.

The European Certificate of Succession

International families frequently discover that they need to prove their status as heirs in more than one country.

To simplify this process, Regulation (EU) No. 650/2012 introduced the European Certificate of Succession.

This document enables heirs, legatees, executors and administrators of the estate to demonstrate their legal status in another participating Member State without having to obtain separate judicial decisions in each jurisdiction.

In Italy, the certificate may be issued by an Italian notary where the legal requirements are satisfied. Although its use is not compulsory, it often represents a valuable instrument for international estates involving assets located in different European countries.

A separate guide on this website explains in greater detail how the European Certificate of Succession operates and when it may be appropriate.

Do You Always Need an Italian Declaration of Succession?

In many cases, yes.

The Italian Declaration of Succession is primarily a fiscal requirement.

It should not be confused with the legal rules determining who inherits, nor does it by itself transfer ownership of inherited property.

Its purpose is principally to fulfil the Italian tax reporting obligations connected with the succession. For successions opened on or after 1 January 2025, any inheritance tax due is generally self-assessed on the basis of the Declaration, subject to subsequent control by the Italian Revenue Agency. Filing the Declaration also supports the related cadastral updating; any separate Land Registry formalities required under Italian property law remain legally distinct.

Where required, the Declaration must generally be filed within twelve months from the opening of the succession. The existence of any exemption, the documentation to be submitted and the tax consequences depend upon the particular circumstances of the estate.

This subject is examined separately in the dedicated guide The Italian Declaration of Succession.

Why Early Legal Advice Matters

International successions frequently involve several countries, different legal systems and multiple public authorities.

Questions concerning the applicable law, tax obligations, property registration, banking documentation and family rights often arise simultaneously.

Addressing these issues at an early stage usually makes the administration of the estate considerably simpler and helps avoid unnecessary delays, additional costs and conflicting legal interpretations.

For many families, obtaining coordinated legal advice before beginning the succession procedure is one of the most effective ways of ensuring that the estate is administered correctly from the outset.

The Role of the Italian Notary

The Italian notary plays a central role whenever an international succession involves assets located in Italy.

Depending on the circumstances, the Notary may assist in determining the law applicable to the succession, advising on the effects of a professio iuris, preparing the Italian Declaration of Succession, issuing a European Certificate of Succession where permitted, coordinating the related cadastral updating and any separate Land Registry formalities, and liaising with professionals in other jurisdictions.

For international families, the objective is not simply to complete formalities, but to ensure that the succession is administered under the correct legal framework and that the legal, fiscal and property-law steps concerning the Italian assets are coordinated in compliance with the applicable rules. The final legal assessment always depends on the deceased's circumstances, the countries involved, the applicable international rules and the characteristics of the estate.