Tax System

Italian taxation applies to both resident and non-resident persons. Italian resident persons are subject to tax according to the worldwide taxation principle. Non-residents are taxed on Italian-source income.

Tax Residence of Individuals

For the purposes of Italian personal income tax, Article 2, paragraph 2 of Presidential Decree No 917/1986 (Italian Consolidated Income Tax Act, TUIR) sets out that residents of Italy are those individuals who, whether nationals or not, for the greater part of the calendar year (ie, 183 days or more, or 184+ in leap years), including fractions of days:

• have their residence in Italy according to the Italian Civil Code – the Italian Civil Code defines residence as the place where “the person has his/her habitual abode”, and the individual’s residence is identified as where he/she is physically present with the intention of residing there with a degree of habituality and stability;
• have their domicile in Italy – for tax purposes, domicile is defined as the place where an individual’s personal and family relationships are primarily developed;
• are physically present in Italy; or
• are registered with the Italian Register of the resident population (“Anagrafe”) – enrolment with the Anagrafe is regarded as a rebuttable presumption.

Categories of Taxable Income

Personal income tax is applied in aggregate on the following categories of income:

• income from lands;
• income from capital;
• employment income;
• self-employment income;
• business income; and
• other income (including capital gains).

Income Brackets and Tax Rates

Personal income tax applies to incomes determined on a worldwide basis at proportional and progressive rates up to 43% as outlined below:

• 23% up to EUR28,000;
• 35% from EUR28,001 to EUR50,000; and
• 43% from EUR50,001.

Local (regional and municipal) surcharges generally apply up to roughly 2%.

Substitutive Taxation

Financial income and alike – such as dividends and interests – is generally subject to a final withholding tax/substitutive tax of 26%.

Capital gains from the disposal of both qualified and non-qualified shareholdings are subject to a 26% substitutive tax. Qualified shareholdings are defined as those representing more than 20% of the voting rights exercisable in the ordinary shareholders’ meeting (2%, in the case of a listed company) or more than 25% of the company’s equity (5%, in the case of a listed company).

For capital gains realised from the sale for consideration of undevelopable land and buildings, the seller may request the application of a 26% substitute tax. Capital gains realised upon sale of properties held for more than five years are not subject to tax (see 1.5 Taxation of Real Estate Owned by Non-Residents and Non-Citizens).

Interest on Italian government bonds, postal savings bonds issued by the Cassa Depositi e Prestiti and similar securities issued by international bodies, as well as interest on bonds issued by “white list” countries, is subject to a 12.5% substitutive tax.

Whenever a double taxation treaty is in force, the withholding tax rate on dividends and interest may be reduced.

Wealth Taxes

Different property taxes apply depending on the situs of the assets and investments and their nature.

Real estate

Real estate located in Italy is subject to Municipal Property Tax (IMU), a local tax applied to property ownership. Rates and exemptions vary depending on the municipality and the cadastral category of the property (with full exemption for the main abode; see 1.2 Exemptions).

Real estate located abroad is subject to tax on the value of real estate abroad (IVIE) at a rate of 1.06% applied on the purchase cost, if available, or the market value. With reference to real estate located in EU countries or EEA countries that guarantee an adequate exchange of information, the value is the cadastral value as determined and revalued in the country in which the real estate is located for the purpose of the local property or income taxes.

Financial investments

Financial investments located in Italy are subject to a 0.2% stamp duty (imposta di bollo). Savings/deposits are taxed at EUR34.20.

Financial investments located abroad are subject to tax on the value of financial assets (eg, stocks of foreign listed companies and units of UCIs) held abroad (IVAFE) at 0.2% (0.4% if the financial assets are held in a “black list” jurisdiction). Savings/deposits are taxed at EUR34.20.

Tax Monitoring Obligations on Foreign Assets

Selected financial and non-financial assets held abroad are to be reported in a special section of the annual income tax return (the so-called “RW Form”).

Foreign assets to be reported in the RW Form include (inter alia):

• holdings in the capital or equity of non-resident entities (eg, foreign companies and legal entities such as foreign foundations and foreign trusts);
• contracts of a financial nature entered into with non-resident counterparties, including loans and life insurance policies taken out with foreign insurance companies;
• real estate;
• precious metals; and
• artworks.

Italian Inheritance and Gift Tax

As a general principle, if a deceased/donor was an Italian tax resident at the time of his/her demise/donation, Italian inheritance and gift tax applies to the value of the transferred assets wherever they are located (worldwide taxation principle). Italian taxation applies also in case of transfer of assets located in Italy if the deceased/donor was not resident in Italy.

The obligation to pay Italian inheritance/gift tax lies on the beneficiaries of the transferred assets, regardless of their residence, and the applicable tax rates are determined on the basis of the degree of kinship between the deceased/donor and the beneficiary, with certain relevant allowances, as follows:

• 4%, on amounts exceeding EUR1 million for spouses and direct descendants and ascendants;
• 6%, on amounts exceeding EUR100,000 for siblings;
• 6% rate, with no tax-exempt threshold, for other relatives up to the fourth degree and in-laws up to the third degree;
• 8% rate, with no tax-exempt threshold, for all other recipients; and
• 4%, 6% or 8% depending on the relationship of kinship with the deceased/donor, on amounts exceeding EUR1.5 million, for transfers to a person with a disability.

Double Taxation Relief and Double Taxation Treaties

Domestic law provides for a tax credit for taxes paid abroad by Italian residents under the following conditions:

• earning of income produced abroad;
• contribution of foreign income to the formation of total income; and
• payment of foreign taxes outright.

Italy has an extensive network of double taxation treaties for income tax purposes, the vast majority of which provide for the tax credit method of eliminating double taxation.

Italy has entered into six double taxation treaties for inheritance tax purposes (with Denmark, the United Kingdom, Greece, Israel, the United States and Sweden) and one for both inheritance and gift tax purposes (with France).

Special Tax Regimes for New Tax Resident Individuals

Italian legislation provides for different favourable tax regimes for individuals transferring their tax residence to Italy.

Flat tax regime for HNWIs (the “Flat Tax Regime”)

The Flat Tax Regime is available to all individuals, regardless of their nationality, who:

• become Italian tax residents; and
• were non-Italian tax residents for income tax purposes for nine out of ten years preceding their relocation to Italy.

Under the Flat Tax Regime:

• Income sourced from foreign jurisdictions is subject to an annual substitutive tax of EUR300,000. The Flat Tax Regime is available to close family members of the applicant if they meet the eligibility requirements. Each family member included in the election is required to pay an annual substitute tax of EUR50,000.
• The taxpayer is not required to disclose foreign income and assets in the Italian income tax return.
• The taxpayer is exempted from the payment of IVIE and IVAFE.
• Italian inheritance and gift tax is due only in relation to goods and rights existing in Italy.
• An anti-abuse provision applies regarding capital gains realised in the first five years of validity of the Flat Tax Regime from the sale of “qualified” shareholdings (as defined above). In such a case, capital gains realised within the first five years are subject to Italian ordinary taxation.
• It is possible to opt out on a country-by-country basis. Income from excluded jurisdictions is subject to Italian ordinary tax rules, and it would be possible to claim for a tax credit and for the benefits of the relevant double taxation treaty (if any).

The Flat Tax Regime terminates after 15 years. The applicant can revoke the election at any time in his/her tax return.

It is possible to file a preliminary tax ruling request to the Italian tax authorities to seek official confirmation in relation to the applicant’s eligibility for the Flat Tax Regime.

Circular No 17/E of 23 May 2017 of the Italian tax authorities clarified that individuals who acquire Italian tax residence under the Flat Tax Regime are to be regarded as residents for the purposes of the double taxation treaties, and are thus eligible to claim treaty benefits. Nevertheless, an assessment on a case-by-case basis remains necessary.

The annual substitute tax under the special flat tax regime was originally set at EUR100,000, increased to EUR200,000 for individuals transferring their residence to Italy after 10 August 2024, and to EUR300,000 for those relocating on or after 1 January 2026 under the 2026 Budget Law.

The annual substitute tax applicable to qualifying family members has also been increased from EUR25,000 to EUR50,000 per person.

The amendments are subject to grandfathering: individuals who became eligible before 1 January 2026 continue to pay the substitute tax applicable at the time of their relocation (EUR100,000 or EUR200,000).

Flat tax regime for new resident pensioners (the “Pensioners’ Regime”)

The Pensioners’ Regime is available to all individuals, regardless of their nationality, who:

• have a pension income from a foreign (non-Italian) source;
• transfer their residence in Italy to one of the municipalities located in the regions of Southern Italy, or to a municipality included among those affected by seismic events, with no more than 30,000 inhabitants (the threshold was amended with effect from 7 April 2026; previously, it was 20,000 inhabitants.);
• have been non-Italian tax residents for five years preceding their relocation to Italy; and
• come from countries with which administrative co-operation agreements are in force.

Under the Pensioners’ Regime:

• income sourced from foreign jurisdictions is subject to an annual substitutive tax of 7%;
• the taxpayer is not required to disclose foreign income and assets in the Italian income tax return;
• the taxpayer is exempted from the payment of IVIE and IVAFE; and
• it is possible to opt out on a country-by-country basis – income from excluded jurisdictions is subject to Italian ordinary tax rules, and it would be possible to claim for a tax credit and for the benefits of the relevant double taxation treaty (if any).

The Pensioners’ Regime terminates after ten years. The applicant can revoke the election at any time in his/her tax return.

The inbound workers regime (the “Impatriati Regime”)

Income of workers who transfer their tax residence to Italy, up to the annual limit of EUR600,000, contributes to the formation of the overall income, and taxation is limited to 50% of its amount if the following conditions are met:

• the workers undertake to reside in Italy for tax purposes for four years;
• the workers have not been tax resident in Italy during the three tax years preceding their relocation – however, if the activity is carried out for the same entity by which the worker was employed abroad before the transfer or for an entity belonging to the same group of companies, the minimum requirement for residence abroad is:
1. six tax years, if the worker has not previously been employed in Italy by the same entity or an entity belonging to the same group; or
2. seven tax years, if the worker, prior to his/her transfer abroad, was employed in Italy by the same entity or an entity belonging to the same group;

• the work activity is performed for the greater part of the tax year in Italy; and
• the workers are highly qualified or specialised.

Relief may be granted at the rate of 60% in the following circumstances:

• where the worker relocates to Italy accompanied by a minor child; or
• in the event of the birth of a child or the adoption of a minor during the period in which the regime is applied – in such cases, the enhanced relief takes effect from the tax year in which the birth or adoption occurs and shall continue for the remaining duration of the entitlement to the relief.

The increased relief is subject to the condition that, throughout the period during which the worker benefits from the regime, the minor child, whether by birth or adoption, is resident in Italy.

The Impatriati Regime terminates after five years.

Taxation of Trusts

General principles

Trusts are subject to Italian corporate income tax (CIT). Italian tax resident trusts are subject to CIT on their worldwide income. Non-resident trusts are taxed only on Italian-source income.

The definition of tax residence for trusts is derived from that provided for corporations (Article 73, TUIR). A trust is considered resident in Italy for tax purposes if, for the greater part of the tax year, it has its place of effective management or its place of ordinary management in Italy (the third criterion provided for the tax residence of companies – the legal seat – is not applicable to trusts).

Trusts established in low-tax jurisdictions are considered to be resident in Italy, unless proven otherwise:

• when at least one of the settlors and at least one of the beneficiaries are tax residents in Italy; or
• when, subsequent to a trust’s establishment, a person resident in Italy attributes the ownership of immovable property or real property rights, including by shares, as well as destination bonds on the same.

For Italian income tax purposes, trusts are classified into the following main categories.

• Transparent trusts, ie, trusts with identified beneficiaries, whose income is attributed and taxed on a transparency basis to the beneficiaries. The identified beneficiary is the holder of the right to request from the trustee the attribution of the part of the income that is attributed to him/her on a transparency basis.
• Opaque trusts (or discretionary trusts), ie, trusts with no identified beneficiaries, whose income is taxed in the hands of the trust. In this case, the trustee has the discretionary power to choose whether, when, to what extent and to whom to attribute the trust income.
• Mixed trusts (both opaque and transparent), for example, where the trust deed provides that part of the income of a trust is set aside as capital and the other part is allocated to the beneficiaries.

As to the rules for determining the taxable base, trusts are distinguished into “commercial” trusts and “non-commercial” trusts depending on whether the trust is engaged in a business activity.

A trust is fiscally disregarded where it merely interposes between the settlor and the underlying assets, particularly where the settlor retains, directly or indirectly, powers over the trust assets or the trustee’s decisions. In such cases, the income arising from the assets formally held by the trust is attributed directly to the settlor. Indicators of tax interposition include revocable trusts and trusts where the trustee cannot exercise its discretionary powers without the settlor’s or beneficiary’s consent (Circular Letter No 61/E of 27 December 2010).

Wealth taxes

Italian resident non-commercial trusts are subject to IMU (this is also due from commercial trusts) in relation to real estate owned in Italy, and IVIE and IVAFE in relation to assets held abroad.

Tax monitoring obligations

Italian resident non-commercial trusts are subject to tax monitoring obligations in relation to assets held abroad; thus, they are required to fill in the RW Form of the Italian tax return.

Inheritance and gift taxes

Legislative Decree No 346 of 31 October 1990 (the Italian Inheritance and Gift Tax Consolidated Act, or TUS) expressly regulates the tax treatment of trusts for inheritance and gift tax purposes. In particular, the relevant provisions of the TUS address the following key aspects.

• Territorial scope of the inheritance and gift tax – where the settlor is an Italian tax resident at the time assets are transferred to the trust, inheritance and gift tax applies to all assets subsequently distributed to the beneficiaries. If the settlor is a non-resident, the tax applies only to Italian-situs assets.
• Tax treatment of transfers made through trusts – transfers through a trust are subject to inheritance and gift tax only when the beneficiaries receive the assets. Tax rates and exemptions depend on the relationship between the settlor and the beneficiary.
• Option for the advance payment of tax upon transfer to the trust – the settlor (or, in the case of a testamentary trust, the trustee) may elect to pay inheritance and gift tax when assets are contributed to the trust. Tax is computed by reference to the value of the endowed assets and the relationship between the settlor and the beneficiaries. Once this option is exercised, subsequent distributions to beneficiaries within the same tax category are not taxed again.

Exemptions From Income Tax and Property Taxes

The main exemptions from income and wealth taxes include:

• the exemption on capital gains on the sale of properties held for more than five years (see 1.1 Tax Regimes and 1.5 Taxation of Real Estate Owned by Non-Residents and Non-Citizens);
• the exemption on capital gains on the sale of properties received by succession (see 1.5 Taxation of Real Estate Owned by Non-Residents and Non-Citizens);
• the exemption on capital gains on the sale of properties used as a main residence by the seller and his/her family for most of the period between purchase and sale (see 1.5 Taxation of Real Estate Owned by Non-Residents and Non-Citizens);
• the exemptions from IMU for the main residence and certain types of properties (such as agricultural land and buildings used for cultural purposes); and
• the exemptions provided for individuals who transfer tax residence by benefiting from one of the special regimes described in 1.1 Tax Regimes.

Inheritance and Gift Tax Exemptions

Objective and subjective exemptions

Various objective and subjective exemptions are provided from inheritance and gift tax. Legislative Decree No 346 of 31 October 1990 (Italian Consolidated Act on Inheritance and Gift Tax, TUS) provides for the following.

• Transfers in favour of the state or a territorial public entity.
• Transfers in favour of a non-territorial public entity.
• Transfers in favour of a recognised foundation or association with public utility purposes.
• Transfers in favour of non-profit organisations of social utility (ONLUS). The ONLUS regime will be repealed with effect from the first tax period commencing after 31 December 2025. From the same date, the Third Sector Code provides an exemption from inheritance and gift tax, as well as mortgage and cadastral taxes on real estate transfers, for gratuitous transfers to Third Sector entities, provided the assets are used exclusively for their statutory civic, solidarity and social utility purposes.
• Transfers in favour of specific entities such as banking foundations, non-governmental organisations and philanthropic entities.

TUS provides that certain assets – such as Italian government bonds and cultural heritage assets – are excluded from the hereditary estate and not counted for the purposes of the taxable base of the inheritance tax.

Transfers of businesses and corporate shareholdings

Article 3, paragraph 4-ter, TUS, provides that transfers of businesses and shareholdings in companies and partnerships to spouses or descendants are exempted from inheritance and gift tax provided that:

• in the case of shares or equity interests in corporations – the transferee must acquire control of the company or consolidate control already held, and is further required to undertake to maintain such control for a period of five years from the date of the transfer;
• in the case of other equity interests (eg, holdings in partnerships) – the transferee must undertake to retain ownership of the interests for a period of no less than five years from the date of the transfer; and
• for businesses – the recipient must commit to continue the business activity for five years following the transfer.

The exemption applies not only to shareholdings in companies incorporated in Italy but also to those held in companies resident in EU member states or the EEA states, as well as in jurisdictions that ensure an adequate exchange of information.

General Considerations

Depending on the type of income-generating assets, wealth structure, goals and family composition, the Italian system offers different solutions for income tax planning, while also having regard to an asset protection perspective and succession planning.

Tax Step Up of the Value of Shareholdings and Lands for Capital Gains Tax Purposes

The 2025 Budget Law (Law No 207 of 30 December 2024) introduced, effective as of 1 January 2025, the option to revalue the tax cost of shareholdings, whether listed or unlisted.

In summary, with respect to shares and equity interests held as at 1 January of each year, the legislation permits individuals, simple partnerships, non-commercial entities, and non-resident persons without a permanent establishment in Italy to adjust the purchase cost or acquisition value – relevant for the calculation of taxable capital gains – by paying a substitute tax at the rate of 21% no later than 30 November of the same year.

With effect from 1 January 2026, the 2026 Budget Law increased the substitute tax rate from 18% to 21%.

The option to pay the substitute tax in instalments is also permitted; for this purpose, the instalments must be of equal amount.

The Tax Regime of “Controlled Realisation” (Realizzo Controllato)

If certain conditions are met, Article 177, paragraph 2 and 2-bis, TUIR, provide a form of tax neutrality regime for contributions of shareholdings, based on their accounting classification in the financial statement of the receiving company.

Such tax neutrality regime has proven successful for corporate reorganisations and for the creation of family holding companies.

Both inbound and outbound relocations require careful tax planning, as the treatment of assets, investment structures and income may differ significantly between Italy and the relevant foreign jurisdiction. Accordingly, a review of an individual’s wealth and income sources before any change of residence is generally advisable.

Particular attention should be paid to financial insurance products, carried interest arrangements and foreign holding companies, as their tax treatment may change following a relocation. Foreign financial investments and art collections may also be held through an Italian fiduciary arrangement to simplify tax reporting.

Individuals intending to benefit from the special flat tax regime under Article 24-bis of the Italian Income Tax Code may apply for an advance ruling before becoming an Italian tax resident, obtaining confirmation of both eligibility and the tax treatment of specific assets or structures, including trusts and holding companies.

As regards outbound relocations, Italy does not levy an exit tax on individuals. Exit taxation applies only to companies transferring their tax residence abroad under Article 166 of the Italian Income Tax Code, subject to specific reliefs where the assets remain allocated to an Italian permanent establishment or where the transfer is made to qualifying EU or EEA jurisdictions.

General Considerations

From a tax perspective, the most efficient way for an individual to purchase and hold residential properties is through direct ownership, since individuals may be entitled to certain benefits, especially in terms of reduction of transfer taxes.

From a non-tax perspective, it should be noted that the acquisition of Italian real estate by foreign individuals may be subject to the reciprocity requirement under Article 16 of the Preliminary Provisions to the Italian Civil Code. Under this principle, foreign nationals may acquire real estate in Italy only if Italian nationals enjoy equivalent rights in the foreign purchaser’s home jurisdiction.

Taxes Upon Purchase

One of the following alternatives may be applied to the purchase of a property in Italy:

• registration tax (imposta di registro) at the rate of 2% (if the primary residence tax benefit applies) or 9% of the purchase price of the property; or
• VAT at the rate of 4% (if the primary residence tax benefit applies), 10% or 22% on the purchase price of the property (in this case, registration tax is also applied at the fixed amount of EUR200).

In case of application of registration tax, it is also possible to apply the “cadastral value” (valore catastale, usually substantially lower than the market value) as taxable base, if the purchaser is an individual who is not acting in the context of a business activity.

Mortgage and cadastral taxes are also due (EUR50 each in case of application of registration tax or EUR200 each in case of application of VAT).

Capital Gains Upon Sale

For capital gains realised from the sale for consideration of undevelopable land and buildings, the seller may request the application of a 26% substitute tax. Capital gains realised upon sale of properties held for more than five years are not taxed.

Capital gains arising from the transfer of urban real estate units used as the main residence of the seller or his/her family members for most of the period between purchase and transfer are exempt from taxation, even if sold within five years from the purchase.

Rental Income

Individuals may elect for the s.c. cedolare secca, a substitute tax replacing personal income tax, regional and municipal surcharges, and the registration and stamp duties otherwise due on residential lease agreements.

The applicable rate is 21% for ordinary leases and 26% for short-term leases (reduced to 21% for one lease designated by the taxpayer). For the s.c. canone concordato leases under Law No 431/1998, the substitute tax is reduced to 10%.

Italian tax legislation is generally stable and provides a high degree of certainty for taxpayers. The key features that make Italy attractive to private clients – including the Flat Tax Regime, tax incentives for inbound workers, relatively low inheritance and gift taxes, and the absence of a comprehensive wealth tax – are not expected to change in the short term.

Legal certainty is further reinforced by the Statute of Taxpayers’ Rights (Law No 212/2000), which generally prohibits the retroactive application of tax legislation. Moreover, where tax regimes are granted for a fixed period, subsequent legislative changes are typically accompanied by grandfathering provisions protecting existing beneficiaries.

Italy has implemented various measures in line with international initiatives, such as:

• OECD Common Reporting Standard (CRS) – providing for the automatic exchange of financial account information between participating jurisdictions.
• Foreign Account Tax Compliance Act (FATCA) – implemented through the Italy-US Model 1 Intergovernmental Agreement, requiring the reporting of financial accounts held by US persons.
• EU Directive DAC 6 – introducing mandatory reporting and automatic exchange of information in relation to cross-border tax arrangements, digital platforms and crypto-assets.
• Public Registers of Beneficial Ownership (“UBO Register”) – Italy introduced public registers of beneficial ownership to improve transparency of corporate ownership and prevent money laundering. Trusts are among the entities subject to reporting obligations.

Italy’s economy is largely characterised by family-owned businesses, making succession planning a key issue. Family Constitutions are increasingly used to define shared values and governance principles, facilitating intergenerational transitions.

Although Wills and other succession planning tools are well established under Italian law, they remain under-utilised. In practice, many entrepreneurs postpone succession planning until a crisis arises, increasing the risk of family and inheritance disputes.

The internationality of assets and families requires an analysis of the civil and tax laws of the jurisdictions involved, as well as the composition of the family.

Aspects to consider include:

• the opportunity to benefit from double taxation treaties;
• reporting requirements (CRS, FATCA, and UBO Register); and
• the laws applicable to marriage, divorce and inheritance (eg, Italy has adopted both EU Succession Regulation No 650/2012 and EU Regulation No 2016/1103 on matrimonial property regimes).

General Principles

Under Italian succession law, certain close relatives, including spouses and children, are protected as forced heirs and are entitled to a reserved share of the estate, calculated by reference to both the deceased’s estate and lifetime gifts, net of liabilities. Succession may take place either under a will or, in the absence of one, pursuant to the statutory rules of intestate succession.

Intestate Succession

The Italian Civil Code distinguishes between different kinds of heirs on intestacy, namely:

• the surviving spouse or the surviving same-sex civil union partner;
• the descendants;
• the ascendants and other blood relatives of the deceased, eg, parents, grandparents, brothers and sisters; and
• collateral kin from the third to the sixth degree.

A surviving spouse, or a same-sex civil union partner, inherits:

• the estate as a whole, when the deceased leaves no descendants, ascendants or other blood relatives;
• one-half of the estate, when the deceased leaves one child;
• one-third of estate, when the deceased leaves more than one child – the remaining two-thirds is inherited by the children in equal shares; or
• two-thirds of estate, when there are no children but only ascendants or blood relatives.

If the deceased leaves no surviving spouse or same-sex civil union partner, his/her children inherit his/her whole estate.

In the absence of any other heir, the deceased’s estate devolves automatically on the state.

Testate Succession

A valid will prevails over the rules of intestate succession. However, under Italian forced heirship rules, the testator cannot freely dispose of the entire estate, as a reserved share is mandatorily allocated to certain close relatives. In particular:

• When there is only the surviving spouse (or surviving same-sex civil union partner) – one-half of the testator’s estate is segregated (the remaining half represents the freely disposable portion).
• Where there are only descendants:
1. in case of a sole descendant – one-half of the estate is segregated (the remaining half represents the freely disposable portion); and
2. if there is more than one descendant – two-thirds of the estate is segregated (the remaining third represents the freely disposable portion).
• Where the testator leaves the surviving spouse (or a surviving same-sex civil union partner) and:
1. a sole descendant, they are entitled to one-third each (the remaining one-third represents the freely disposable portion);
2. more than one descendant, one-quarter is for the surviving spouse (or civil union partner) and one-half for the descendants (the remaining quarter represents the freely disposable portion); and
3. his/her parents, the surviving spouse (or civil union partner) is entitled to one-half, while the parents are entitled to one-quarter (the remaining quarter represents the freely disposable portion).
• Where the testator leaves only ascendants, they are granted one-third of the testator’s estate (the remaining two-thirds represent the freely disposable portion).

General Principles

The statutory property regime for married couples is the community of property regime. However, married couples can at any time switch to the separation of property regime.

Community of Property Regime

Under Italian law, the default matrimonial property regime for spouses and civil union partners is the community of property, unless they opt for separation of property or another agreed regime.

Property acquired during the marriage or civil union is generally owned jointly in equal shares, except for “personal assets”, such as property owned before the marriage or acquired by gift or inheritance.

Community property may be enforced by the personal creditors of one spouse only after that spouse’s separate assets have been exhausted, and only up to the debtor’s share of the common assets, without prejudice to the rights of the community’s own creditors.

Separation of Property Regime

Spouses (and civil union partners) may opt for the legal separation of property regime, under which the spouses remain the exclusive owners of the property acquired by them both before and after the marriage.

Conventional Community of Property

Conventional community of property is a regime of legal community of property modified by mutual agreement between the spouses, within certain limits.

Pre-Nuptial Agreements

Pre-nuptial agreements are not provided for by Italian law. Historically, the Italian Supreme Court has always deemed null and void any agreement made in contemplation of a future divorce.

However, Italian case law has progressively recognised greater contractual autonomy between spouses, moving away from the traditional view that agreements governing the financial consequences of a future separation or divorce were void.

This approach was reaffirmed by the Italian Supreme Court (Order No 20415 of 21 July 2025), which held that such agreements are, in principle, valid and enforceable provided they do not conflict with mandatory law or public policy.

Transactions that do not result in taxable capital gains include gratuitous transfers, such as successions and gifts.

With reference to shareholdings, taxable capital gains are determined as the difference between consideration received and cost or the purchase value subject to taxation, increased by any charge inherent in their production, including inheritance and gift tax, excluding interest expense.

In the case of acquisition by inheritance, the value defined or declared for inheritance tax purposes is assumed to be the cost. For shareholdings exempt from inheritance tax, the fair value at the date of the opening of the inheritance is adopted.

In the case of acquisition by donation, the donor’s cost is assumed as the cost.

The Italian legal and tax system provides some tools that allow taxation on transfers of assets to be reduced or postponed, if not eliminated altogether.

Donation of Bare Ownership

The usufruct is a right in rem allowing the holder to use and enjoy another person’s asset and receive its income, without altering its economic purpose. It cannot extend beyond the usufruct holder’s lifetime.

An owner may transfer the bare ownership of an asset while retaining the usufruct. Upon expiry of the usufruct, full ownership automatically vests in the bare owner.

For inheritance and gift tax purposes, the taxable value of the transfer is the value of the bare ownership (ie, the value of the full ownership less the value of the usufruct). The subsequent consolidation of full ownership on the usufruct holder’s death is not subject to further inheritance or gift tax.

Life Insurance Policy

Life insurance policies are, to a certain extent, tax-efficient in Italy and are increasingly being used as investment/wealth planning vehicles.

Income taxation is deferred at the time of the partial or full surrender or at the time of the payment to the beneficiary. However, no income tax is levied on the portion referred to demographic risk of the policy.

In case of death of the insured person, the amount paid to the beneficiaries is collected out of inheritance rules and consequently is excluded from inheritance tax.

Trusts

Trusts are vehicles for preserving family assets for future generations. Italy is a trust-friendly jurisdiction both from a civil law perspective – recognising asset segregation (see 3.2 Recognition of Trusts) – and from a tax perspective (see 1.1 Tax Regimes). Trusts are recognised and enforced in Italy by virtue of the Convention of 1 July 1985 on the Law Applicable to Trusts and on their Recognition, ratified under Law No 364 of 16 October 1989, which came into force on 1 January 1992 (the “Hague Convention”, see section 3.2 Recognition of Trusts).

Transfers of Businesses and Corporate Shareholdings Through Family Pacts (Patti di Famiglia)

A family pact (patto di famiglia) is an agreement whereby an entrepreneur or shareholder transfers, while alive, his/her enterprise/shareholdings to one or more of his/her heirs.

The family pact shall be executed in the form of a public deed, by and among the entrepreneur/shareholder, his/her spouse (or civil union partner) and any other person that could be considered heir of intestacy in his/her respect, should the entrepreneur/shareholder have died at the time of the family pact’s execution.

The parties to whom the enterprise/shareholding expressly devolves by means of the family pact shall pay to the other parties a sum equal to their compulsory portion, unless the other parties waive their right to such payment. The goods received by each party are imputed to the compulsory portion of the relevant party and are exempt from re-integration and/or reduction.

A transfer of enterprise or shareholdings may benefit from the exemption from inheritance and gift tax provided by Article 3, paragraph 4-ter, TUS (see 1.2 Exemptions).

Circular Letter No 30/E of 27 October 2023 confirmed that gratuitous transfers of crypto-assets are subject to Italian inheritance and gift tax. The taxable base is their market value at the date of the gift or death, determined by reference to the relevant exchange or a comparable trading platform.

For territoriality purposes, crypto-assets held through Italian service providers or on storage devices located in Italy are treated as Italian-situs assets.

Given the risk of loss of access to digital wallets, succession planning should also address crypto-assets, for example, through a Will, a trust or professional custody arrangements.

Trusts

The trust is a wealth planning vehicle that is being increasingly used in Italy, and recent clarifications by the Italian tax authorities (see 1.1 Tax Regimes), preceded by established case law, have provided greater certainty regarding the tax treatment.

To date, there is no organic regulation of trusts in domestic law.

Trusts may be distinguished according to their different uses and purposes, for example:

• a “purpose trust”, established for the pursuit of a specific purpose identified by the settlor;
• a “family trust”, established for asset protection and succession planning;
• a “Dopo di Noi trust” (“After Us Trust”), established for the benefit of individuals with severe disabilities in compliance with the requirements of Law No 112 of 22 June 2016 (the “After Us Law”, Legge sul Dopo di Noi);
• a “guarantee trust”, established to protect the interest of one or more creditors of the settlor; and
• a “liquidating trust”, established to carry out the liquidation of the assets of the settlor.

Foundations

Italian foundations are generally used for social purposes only and are strictly regulated by the public authorities.

A foundation can be regarded as an efficient way to preserve important cultural and artistic heritage (eg, it can be used to set up a family museum).

A foundation is a legal entity whose main purpose is to assist a social, cultural or charitable need, and thus, the assets of the foundation have to assigned for the specific goal for which it was incorporated.

For tax purposes, foundations may qualify as either commercial or non-commercial entities and are generally subject to corporate income tax, unless they meet the requirements applicable to Third Sector Organisations, in which case they may benefit from the relevant tax incentives (see 10. Charitable Planning).

Trusts have no specific civil law discipline in Italy and are recognised under the Hague Convention.

As there is no domestic legislation relating to trusts, they can only be established in Italy in accordance with the Hague Convention and subject to a foreign governing law.

The Italian Supreme Court of Cassation (No 9637 of 19 April 2018) has confirmed that trusts are not atypical arrangements and are recognised in the Italian legal system following the ratification of the Hague Convention.

Income Taxation

The tax implications for beneficiaries tax resident in Italy depend substantially on whether the trust is “opaque” or “transparent” (see 1.1 Tax Regimes) and whether the trust is tax resident in Italy or not.

Italian resident opaque trusts

Income of an Italian resident opaque trust is taxed in the hands of the trust (subject to CIT), and future income distributions are not taxable in the hands of the beneficiaries.

Non-Italian resident opaque trusts

The taxation on Italian resident beneficiaries of income distributions to them from non-resident trusts depends on whether the trust is established in a low-tax jurisdiction.

If the opaque trust is established in a state or territory which, with respect to income produced there, is subject to taxation of less than half of that applicable in Italy, attributions of income by the trust to the beneficiary are subject to taxation in the hands of the beneficiary on a cash basis.

Distributions from “white list trusts” are not subject to income taxation for Italian resident beneficiaries.

Such provisions apply also to trust-like entities, ie, entities having the same characteristics as a trust (such as certain foundations).

Italian resident transparent trusts

Income of transparent trusts is imputed by transparency to the beneficiaries regardless of the actual distribution. The subsequent distribution, even if it occurs in a later year, does not result in further taxation for the beneficiaries.

Non-Italian resident transparent trusts

Income imputed to the Italian resident beneficiary is taxable in Italy in the hands of the beneficiary regardless of whether the income is generated in Italy or not.

Trustees

The trustee is not subject to taxation for income generated by the trust.

Inheritance and Gift Tax

Inheritance and gift taxes are due from the trust beneficiaries if the settlor was an Italian resident at the time of the attribution of the asset to the trust – regardless of its location – or if the asset is located in Italy if the settlor was not an Italian resident at the time of the attribution to the trust (see 1.1 Tax Regimes).

Trustees

Trustees are not subject to Italian inheritance and gift tax in relation to assets settled into a trust.

Italian tax authorities closely scrutinise trusts where a settlor or beneficiary also acts as trustee, protector or holds similar fiduciary powers. Depending on the degree of control retained, the trust may be treated as fiscally interposed, with its assets and income attributed directly to that individual for tax purposes.

The choice of estate planning method depends on factors such as the composition of the family’s assets (movable, real estate, and family business), the composition of the family, the number of generations expected to be involved in the short to medium term and their interest in being involved in the management of the family’s key assets.

Generally, the decision-making process concerning which strategy to adopt requires a series of steps which can be summarised as follows:

• mapping family wealth;
• identifying and focusing on goals;
• preserving generational continuity (or selling the family business to enter into new industries); and
• evaluation of potentially applicable solution(s).

From a mere asset protection perspective, the Italian Civil Code provides some instruments to achieve the interests of the family and the achievement of worthy purposes, such as the following.

• Patrimonial fund (fondo patrimoniale) – spouses or civil union partners may allocate assets to a separate fund dedicated to family needs. Such assets cannot be used inconsistently with that purpose and are generally protected from creditors whose claims are unrelated to family needs.
• Destination bond (vincolo di destinazione) – registered movable or immovable assets may be segregated for up to 90 years (or the beneficiary’s lifetime) to pursue a legally recognised purpose. The assets are enforceable only in respect of liabilities connected with that purpose and are excluded from both the settlor’s estate and the community property regime.

Corporate vehicles may also be used for asset protection. In particular, the simple partnership (società semplice) is widely used to hold financial and real estate assets. Assets owned by the partnership are generally protected from the partners’ personal creditors, who may only attach distributions or, where the debtor’s assets are insufficient, seek liquidation of the partner’s interest. The società semplice is not subject to statutory accounting requirements and allows governance rights to be allocated independently from economic interests.

The key to successful estate planning lies in combining the opportunities offered by civil and tax law with a long-term perspective.

Instruments used for succession purposes under civil law include the following.

• The family pact (see 2.6 Transfer of Assets: Vehicle and Planning Mechanisms).
• Corporate vehicles – setting up a holding company may be a way to remove any conflicts between heirs from the operating companies, shifting them to another layer. The structure of the holding company enables the determination of rules of governance of the family estate, through which it is possible to distinguish between powers of management and enjoyment of economic rights. Moreover, through the gift of bare ownership (see 2.6 Transfer of Assets: Vehicle and Planning Mechanisms), it is possible for the usufruct holder to retain control of administrative and economic rights by anticipating the transfer of share ownership.

From a tax perspective, the legislation offers support for generational transitions from both an income tax and an inheritance and gift tax perspective. For example:

• Income tax – neutrality regime for contributions of shareholdings for setting up family holding companies (see 1.3 Income Tax Planning); and
• Inheritance and gift tax – exemption for transfers of businesses and shareholdings – also through a family pact – to spouse and descendants (see 1.2 Exemptions).

The transfer of shareholdings is subject to registration tax in a fixed amount (EUR200) and stamp duty (EUR15). Any minority discount applied in negotiation is not relevant for transfer tax purposes.

In addition, transfers of shares in Italian joint stock companies may also be subject to a tax on financial transactions (the so-called “Tobin tax”) of 0.4% (or 0.2% if the transfer takes place in regulated markets and multilateral trading systems and 0.04% for high-frequency electronically executed transactions) due from the purchaser. The taxable base is the value of the transaction, ie:

• the value of the net balance of daily settled transactions related to the same financial instrument and concluded on the same business day by the same person; or
• the price paid.

In Italy, disputes over inheritance matters may lead to claims of violation of the compulsory share (see 2.3 Forced Heirship Laws).

A violation of the compulsory share may occur, for example:

• when a testator has disposed of more than the freely disposable portion; or
• where other heirs with forced heirship rights receive more than they are entitled to (for example, through donations received during the lifetime of the deceased).

Even contributions to a trust may in principle violate the Italian forced heirship rules, for example, when one of the forced heirs is not included among the beneficiaries of the trust, or in the case of a discretionary trust in which the trustee is granted authority both to identify the beneficiaries and to determine the extent of the distributions to be made.

In this regard, the Italian Supreme Court of Cassation, in its Judgment No 5073 of 17 February 2023, held that a trust which infringes the rights of forced heirs (legittimari) is not null and void. Rather, any forced heir who considers their rights to have been prejudiced may seek judicial relief by bringing an action for reduction (azione di riduzione).

Given the increased international mobility of families, recent years have seen cases aimed at ascertaining the law applicable to succession.

When the right of a forced heir to his/her compulsory share of the deceased’s estate is violated, the heir may file an action for the reduction (azione di riduzione) of the testamentary provisions and/or the donations made by the deceased during his/her lifetime.

If successfully brought, the action for reduction may be followed by an action for “restitution” (azione di restituzione) against the beneficiaries of the disposition.

To avoid litigation, the parties may come to an agreement on reinstatement of the violated compulsory share: on the one hand, the aggrieved heir may renounce the lawsuit; or on the other hand, the counterparty may transfer, in mitigation of any claim, assets of his/her own or of the inherited estate.

Fiduciary Companies

Corporate fiduciaries are a widely used in Italy because they enable various objectives to be achieved, such as:

• confidentiality, as the assets are formally in the name of the fiduciary; and
• tax simplification, as the fiduciary company acts as a tax withholding agent, and income from assets held in its name does not have to be reported on the principal’s tax return; likewise, foreign assets held in the fiduciary’s name are not subject to tax monitoring obligations (no filling out of the RW Form).

Corporate fiduciaries carry out activities of administration and management of assets, although they do not own them. Ownership, in fact, remains with the third party who has entrusted the fiduciary company.

Depending on the type of business conducted, trust companies can be categorised into the following.

• Fiduciary companies carrying out static administration – these exercise administration and supervision of the assets entrusted by the client, while complying with the instructions given by the client for each transaction; and
• Fiduciary companies carrying out dynamic administration – these manage assets, being granted broad discretionary powers over those assets (eg, they can dispose of assets, purchase others and reinvest any profits earned).

Fiduciary companies may either administer assets in accordance with the client’s instructions (static administration) or manage them on a discretionary basis (dynamic administration). They are subject to authorisation and supervision by the competent authorities and, where engaged in the custody and administration of financial instruments, by the Bank of Italy, including for anti-money laundering purposes.

Trust Companies

In Italy, trust companies specialise in establishing and managing trusts by providing trustee services in a professional manner.

The activity of trustees is not regulated and can also be carried out by non-professional trustees.

Fiduciary Companies

Ministerial Decree of 16 January 1995 states that the clauses of the fiduciary mandate shall mandatorily provide for, inter alia:

• liability for the fiduciary company’s breach of duty as governed by the rules of the Italian Civil Code on diligence in the performance of obligations and the diligence of the mandatary (the mandatary is required to execute the mandate with the diligence of a good father of a family); and
• the obligation of the fiduciary company to be responsible for the actions of its collaborators whose services the principal authorises it to use in the performance of the assignment.

In addition, fiduciary companies are subject to supervision by the competent authorities (see 6.1 Prevalence of Corporate Fiduciaries).

Trust Companies

The liability of the trustee may differ depending on the governing law of the trust chosen. It is common for specific provisions to be included in the trust deed to exempt the trustee from liability in the event of loss of the trust fund not attributable to the trustee’s misconduct or breach of trust, as well as the use of indemnities for the trustee in case of final distribution and termination of the trust or change of trustee.

Fiduciary Companies

Except for the obligations and requirements described in the previous sections 6.1 Prevalence of Corporate Fiduciaries and 6.2 Fiduciary Liabilities, Italian legislation does not provide for an ad hoc regulation concerning investment of assets by fiduciary companies. The relationship between a principal and a fiduciary company is regulated by a contractual agreement containing instructions as to the type of investments that can be made and the way the assets are managed. This last aspect will depend on the type of mandate granted, ie, static or dynamic (see 6.1 Prevalence of Corporate Fiduciaries).

Trust Companies

Usually, the trust deed and the governing law contain regulation on how the trust assets shall be invested.

Fiduciary Companies

Usually, assets administered include mainly securities, financial instruments and foreign insurance policies. It is not common for real estate to be held in the name of a fiduciary company.

There is no standard or investment theory applicable to investments held through a fiduciary company, and diversification is not required. Especially with reference to the “static” fiduciary mandate, the fiduciary company acts according to the instructions of the principal.

Trust Companies

Trusts can hold any type of asset, and – in accordance with the provisions of the trust deed – the trustee has discretion in managing and investing the trust fund. No specific authorisation is required to hold active businesses.

Residence and Domicile

Article 43 of the Italian Civil Code provides for the definition of residence and domicile of individuals.

Residence is the place where an individual habitually resides. The application for residence is filed to the municipality to which the applicant moved within 20 days from the relocation.

Depending on the municipality, the declaration of residence can be submitted through the national registry portal using a digital identity, via email, or by in-person appointment, submitting the following documents:

• a valid passport or identity card (for EU citizens) or a residence permit (for non-EU citizens);
• the Italian tax identification number (Codice Fiscale);
• documents proving ownership; and
• possession or availability of a property, to establish habitual residence.

Domicile is the place where a person has established the principal centre of their personal and economic interests. It is determined by both objective factors (such as economic, family and social ties) and the individual’s intention to establish that centre of interests. In certain cases, domicile is determined by law (eg, for minors). No formal declaration or registration is required to establish domicile in Italy.

Non-EU nationals who intend to reside in Italy are required to obtain an entry visa and a residence permit. Among other categories, Italian immigration law provides for various types of visa designed to facilitate entry into and lawful stay within the country, including the following.

• Investor Visa – a two-year residence visa (renewable for a further three years) available to non-EU nationals who undertake to invest in assets deemed strategic for the Italian economy and society. Specifically, eligible investments include:
1. EUR2 million in Italian government bonds;
2. EUR500,000 in shares or quotas of an Italian limited liability company, whether listed or unlisted (including SICAVs and SICAFs);
3. EUR250,000 in an Italian innovative start-up; and
4. EUR1 million in a philanthropic initiative.
• Elective Residence Visa – this visa category is intended for individuals who wish to relocate to and reside in Italy without engaging in any employment or business activity, and who are able to demonstrate the possession of substantial and stable passive income.
• Digital Nomad/Remote Worker Visa – this visa category is designed for individuals intending to reside in Italy while performing work activities remotely. It is available exclusively to highly skilled professionals whose qualifications meet or exceed the thresholds set out under Article 27-quater of Legislative Decree No 286 of 25 July 1998 (The Italian Consolidated Act on Immigration). The visa is divided into two sub-categories:
1. Digital nomads, comprising freelancers, consultants, or other independent professionals; and
2. Remote workers, being employees of foreign entities who are able to carry out their professional duties entirely through remote working arrangements.

Citizenship

Italian citizenship may be acquired:

• by descent (bloodline, jure sanguinis);
• by birth jure soli, if born in the Italian territory to stateless parents or if the parents are unknown or unable to pass on their citizenship to the child according to the law of their country of origin;
• by marriage, if marrying an Italian citizen;
• through adoption by Italian parents; or
• by continuous residence in Italy:
1. for at least four years in the case of EU citizens; or       
2. for at least ten years in the case of non-EU nationals, who must meet the following requirements:
1. sufficient income for sustenance;
2. absence of criminal records; and
3. no impediments to the security of the Italian Republic.

Law No 74 of 23 May 2025 introduced significant amendments to Italian citizenship legislation, particularly concerning jure sanguinis. Among other changes, the law restricts the automatic transmission of citizenship by descent, limiting it primarily to the children and grandchildren of Italian citizens (ie, within the second generation).

Italy does not provide for expedited citizenship procedures (such as citizenship through investment programmes).

Law No 112 of 22 June 2016 (the “After Us Law”, Legge sul Dopo di Noi) was enacted with the aim of protecting individuals with severe disabilities who are without family support or for the time when such support will cease.

The After Us Law, inter alia, provides for several benefits with reference to the establishment of trusts having as sole beneficiaries people with severe disabilities with the purpose of protecting said beneficiaries and financially supporting their “life project”.

Assets and rights placed in trusts established for the benefit of people with severe disabilities are exempt from inheritance and gift tax.

The same favourable regulations also apply to destination bonds under Article 2645-ter of the Civil Code (see 4.1 Asset Protection) and to contracts of trusteeship (contratti di affidamento fiduciario), ie, those contracts through which one party (the “entrustor”, affidante) agrees with another party (the “entrustee”, affidatario) to identify certain assets to be used for the benefit of one or more parties under a programme established by the entrustor and implemented by the trustee, having the same purpose of supporting persons with severe disabilities.

The protection measures provided for by Italian law are as follows.

• Support administration (amministrazione di sostegno) – a person unable to provide for his/her own interests, due to an infirmity or a physical or psychic impairment, may be assisted by a “support administrator” (amministratore di sostegno) appointed by the Guardianship Judge (Giudice tutelare), by means of a special decree, with ordinary and extraordinary management tasks in favour of the beneficiary. The beneficiary remains capable of performing all acts that do not require the representation or assistance of the support administrator.
• Interdiction (interdizione) – a status of habitual mental incapacity may, by order of the judge, be declared for persons incapable of looking after their own interests. This includes not only persons suffering from habitual mental incapacity, but also those who prove incapable of looking after their own interests.
• Incapacity (inabilitazione) – this status of reduced capacity to act may be declared by the court of a person of full age who, due to his/her mental condition (not so serious as to entail interdiction), is unable to look after his/her own interests.

It is possible for a preference for a person to serve as guardian to be indicated in a deed or Will. In this case, the courts usually take this into account by preferentially choosing a person in the same family circle as the beneficiary of the measure.

The principal instrument is the support administration (amministrazione di sostegno) (see 8.2 Appointment of a Guardian), introduced by Law No 6 of 2004. An individual may designate, by notarised deed or authenticated private deed, the person they wish the court to appoint as support administrator in the event of future incapacity. The court appoints the administrator and determines the scope of their powers according to the beneficiary’s needs and residual capacity.

Traditional powers of attorney may also be granted for asset management and personal affairs. However, unlike lasting or enduring powers of attorney recognised in some jurisdictions, they generally cease to be effective upon the principal’s incapacity.

In practice, advance designation of a support administrator is often combined with broader succession and wealth-planning arrangements. The amministrazione di sostegno remains the principal and most effective mechanism under Italian law for protecting vulnerable adults while preserving their autonomy.

Italian law provides a comprehensive framework for the protection of persons with disabilities (Law No 104/1992) and for the care of elderly persons (Legislative Decree No 29/2024), promoting home care, telemedicine, palliative care and dedicated financial support.

From a tax perspective, a 19% personal income tax deduction is available for expenses incurred for personal care attendants, subject to statutory income and expenditure limits.

Law No 219/2017 introduced advance healthcare directives (Living Wills), allowing individuals to express their wishes regarding medical treatment and appoint a healthcare proxy in the event of future incapacity.

Children born out of wedlock (if recognised) and adopted have the same rights, including for inheritance purposes, as children born to married couples.

No share of the inheritance is due to an unrecognised child, but he/she may file a court action to obtain recognition even after the death of the alleged parent.

As to posthumously conceived children, in order to obtain recognition of paternity or maternity, a legal claim has to be brought before the Civil Court. Italian law allows a person to have paternity (or maternity) declared by judgment, even if the alleged father (or mother) is already deceased.

In Italy, surrogate pregnancy constitutes a prohibited medical practice, punishable by imprisonment and a fine.

In Italy, the legal recognition of children of same-sex couples remains an evolving area. Current national legislation recognises only the biological parent as the legal parent.

The legal recognition of children in same-sex families depends on the parents’ gender and the means of conception.

Following Constitutional Court decision No 68/2025, both members of a female same-sex couple may be recognised as parents from birth where the child was conceived through medically assisted reproduction abroad with their prior consent. In other cases, recognition may be obtained through adoption in special circumstances (adozione in casi particolari).

For male same-sex couples, as surrogacy is prohibited in Italy, the non-biological parent’s legal recognition generally requires adoption in special circumstances under Article 44(1)(d) of Law No 184/1983, subject to approval by the Juvenile Court.

Law No 76 of 20 May 2016 (“Cirinnà Law”), which came into force on 5 June 2016, regulates same-sex civil unions, recognising almost all the rights granted to married couples (eg, marital and inheritance rights), with some exceptions, the most relevant of which is adoption. Civil unions are not granted the possibility of adopting children.

Italian law distinguishes between marriage, civil unions and unmarried cohabitation. Although cohabitation is recognised under Law No 76 of 2016 and may be regulated through a cohabitation agreement (contratto di convivenza), it does not confer the same rights as marriage or a civil union.

Unlike spouses and civil partners, cohabiting partners have no statutory inheritance rights and are not protected by the Italian forced heirship regime. Accordingly, testamentary planning is essential if assets are to pass to the surviving partner.

The tax treatment is also less favourable. Transfers between spouses and civil partners benefit from a EUR1 million exemption and a 4% inheritance and gift tax rate on the excess, whereas transfers to unmarried cohabiting partners are generally subject to tax at 8% with no exemption.

Taxpayers who make charitable donations to certain categories of entities of special social relevance are entitled to tax benefits in the form of tax deductions (from 19% to 35%) or in the form of deductions from taxable income or, in certain cases, in the form of tax credits (eg, in the case of a donation in support of culture, the so-called “art bonus”).

In addition, donations to charitable entities (eg, third-sector entities) are exempt from inheritance and gift taxes (see 1.2 Exemptions).

Historically, the most widely used instrument for carrying out philanthropic and charitable activities has been the foundation (see 3.1 Types of Trusts, Foundations or Similar Entities).

A foundation may qualify as a third sector entity if it is pursuing, on a non-profit basis, civic, solidaristic and socially useful purposes and enrols with the Single National Register of the Third Sector (Registro unico nazionale del Terzo settore, RUNTS).

The ONLUS regime was repealed with effect from 1 January 2026. From that date, the tax provisions of the Third Sector Code (Legislative Decree No 117/2017), as amended in 2025, became fully effective and apply to qualifying Third Sector entities.

Trusts have also been used to carry out charitable activities as they have been allowed to qualify as ONLUS. However, following the reform of the third sector by the Ministry of Labour, in its Circular Letter No 9/2022, as of the time of writing, trusts cannot qualify as third sector entities and benefit from the related advantages, including tax benefits.