How much does the inheritance tax on a house cost?

The inheritance tax cost for a house varies based on the value of inherited real estate assets, who must pay it, and who is exempt due to close kinship or value thresholds.

Most often, there’s no payment required as there are exemptions, especially for close relatives like parents and children. However, the tax applies differently depending on the relationship with the deceased and the property value.

Inheritance tax is imposed on both inherited real estate and donations. For both, the tax triggers either at the signing of the notarial deed (for donations) or at the opening of the succession (typically the date of death).

Those subject to inheritance tax are heirs and legatees for inherited assets and donees for donations. The tax calculation is based on the inheritance declaration data, with most cases resulting in no payment.

For inherited properties, taxation follows specific rates:

Spouses and direct relatives like parents and children are often exempt up to a certain value threshold.
Siblings face a different tax rate, while more distant relatives or non-relatives have higher tax rates without exemptions.
Exemptions are granted for specific scenarios, such as inheritance between spouses or direct relatives up to a certain value. Also, there’s a special exemption for properties inherited by individuals with recognized disabilities.

Unmarried cohabitants are considered unrelated for inheritance tax purposes, subjected to an 8% tax rate on inherited property values without exemptions.

The inheritance declaration, mandatory within twelve months of the deceased’s death, is essential for tax assessment. Alongside inheritance tax, additional taxes like mortgage and cadastral taxes apply, with possible exemptions for first homes under certain conditions.

VGS Lawyers is an Italian Law Firm specialised in Inheritance. In case you need assistance with your Italian Inheritance please contact info@vgslawyers.com