Inheritance and donations: all the latest news for young heirs

The reform of inheritance and gift taxes, effective from January 1, 2025, marks a profound change in the methods of managing and calculating taxes related to inheritances and gratuitous deeds. With circular no. 3/2025, the Revenue Agency took stock, offering a clear and updated overview not only of the new procedures, but also of the relief measures and reduced penalties for violations committed from September 1, 2024.

Self-assessment of the tax: what changes from 2025

One of the main changes concerns the transition to the self-assessment method of inheritance and gift tax. For inheritances opened from January 1, 2025, the Revenue Agency will no longer calculate and request payment of the tax, but it will be up to the taxpayers—or more precisely, those required to file the inheritance declaration—to independently determine the amount due.

The tax must be paid within 90 days of the deadline for filing the inheritance declaration, which is set at 12 months from the date of opening of the inheritance.

Practical example

• Date of opening of the inheritance: 22 October 2025
• Deadline for filing the return: October 22, 2026
• Deadline for paying the tax: January 20, 2027 (90 days thereafter)

New definition of the taxable scope

The reform also expanded the scope of the tax, which now includes:

• Transfers of assets and rights due to death (succession)
• Transfers by gift
• Transfers gratuitously
• Transfers deriving from trusts and other liens Destination

This regulatory extension aims to ensure greater fairness and consistency in the tax treatment of the various forms of wealth transfer.

Incentives for young heirs under 26

An important new development concerns young heirs up to age 26. In the case of a sole heir under 26, banks and financial intermediaries may release the assets in the estate exclusively for the payment of mortgage, land registry, and stamp duty taxes.

This measure applies even if there are other heirs, provided they have renounced the inheritance. However, the release does not cover the amount of self-assessed inheritance tax, nor any special taxes or additional land registry fees.

Inheritance declaration: electronic submission required

The inheritance declaration must be submitted exclusively electronically, in line with the Public Administration's digitalization process. Trustees are also expressly included among the obligated parties in the case of a testamentary trust.

Deductibility of the deceased's debts

The circular also clarifies the conditions for the deductibility of the deceased's debts contracted in the six months preceding death. Only liabilities for the following purposes are eligible for deduction:

• Maintenance expenses
• Medical expenses
• Surgical expenses

To benefit from the deduction, it is necessary to present suitable documentation that demonstrates not only the actual existence of the debt, but also the direct connection between the loan contracted and the expenses incurred.

Penalties: percentage reduction starting September 1, 2024

Finally, Legislative Decree no. 87/2024, effective September 1, 2024, introduces a more favorable penalty regime. The penalties for omissions, errors, or delays relating to inheritance and gift taxes have been reduced, with a view to encouraging greater taxpayer compliance.

The reform represents a significant turning point in the Italian tax landscape regarding inheritance and gift taxes. The new, more autonomous and digitalized system aims to simplify procedures, empower taxpayers, and offer concrete benefits, especially to younger taxpayers. However, correct information and the support of industry professionals, such as those at the Agenzia delle Successioni, are essential to avoid errors and fully benefit from the new measures introduced.