The tax advantages of donating real estate in Italian law

The data confirm that Italians, in order to convey real estate property to their heirs, prefer the testament legacy in stead of the donation that allows you to plan the hereditary distribution of your own heritage avoiding, at the time of the effective transmission of the real estate by testament, to incur into future changes in the law on succession tax.

In Italy, during the last year, almost 20% of transactions involving real estate have been concluded by donation for a total of more than 80.000 buildings, to which 17.000 building and agricultural lands are added, and 36.000 in nude property.

The current Italian law about donation provides some tax advantages on the basis of property subject’s value and depending on the degree of kindship of the recipient. In this case, the rules establish the donation’s free gift, the exemption from tax, for the partner and relatives in straight line who receive a property worth less than 1Million euros.

In addition, if this is the first home, the recipient can also benefit from its tax breaks.

On this subject we have prepared a detailed table that we can send you, upon request by email to: info@legaltaxteam.com