SWISS SUCCESSION AGREEMENT AND HEIR RESIDENT IN ITALY

The Swiss succession agreement, whereby the heir resident in Italy renounces his future inheritance rights in exchange for a consideration in his favor, such as an annuity, does not constitute a "donation", therefore the inheritance and donation tax does not apply due to lack of the tax condition. Instead, it has an "onerous" nature as the sums paid to the heir are willing to be a consideration with respect to the renunciation of the inheritance which, obviously, being economically appreciable constitutes an act with a patrimonial content. In the absence of the consideration represented by the renunciation of the inheritance, in fact, no pecuniary benefit would be paid. Therefore, the sums paid to the heir resident in Italy on the basis of the "succession agreement" contribute to form the total income of the same in the tax period in which they are received, as income similar to that of employment pursuant to Article 50, paragraph 1, letter h) of the TUIR, subject to taxation exclusively in Italy by virtue of art. 21, par. 1, of the Convention against double taxation in force between Italy and Switzerland.

In terms of registration tax, as an act formed abroad, it is not subject to the registration obligation. In this regard, however, it should be noted that, should the use case arise, the succession agreement formed in Switzerland will be registered with the application of the tax according to the provisions of the TUR.

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