Successions and donations: what's new for 2025

With the entry into force of Legislative Decree No. 139 of September 18, 2024, the inheritance and gift tax undergoes a substantial legislative overhaul as part of the broader tax reform set forth by Delegated Law No. 111/2023. The new provisions, interpreted and clarified by the Italian Revenue Agency in Circular No. 3 of April 16, 2025, introduce significant changes regarding tax calculation, filing obligations, penalties, and the regulation of indirect gifts.

Competent office: the fiscal geography changes

Legislative Decree No. 139/2024 reformulates Article 1 of the TUS, extending the scope of the tax to include not only gratuitous transfers but also destination constraints such as trusts. It also amends Article 6:

• If the deceased was resident in Italy, the competent office is that of their last residence;
• If resident abroad, the last known residence in Italy is now considered (no longer the Rome Office);
• If the residence is unknown, the Rome Office remains competent.

For donations, the criteria of the registration tax remain in place.

Self-assessment of the tax: more responsibility for taxpayers

The main innovation is the introduction of self-assessment: the Italian Revenue Agency will no longer calculate the amount due—the taxpayer must determine and pay it themselves within 90 days of the filing deadline.

Dedicated tax codes:

• 1539: self-assessed tax
• A139: penalties
• A152: interest

It is possible to pay in instalments (at least 20% upfront), but only if the amount exceeds 1,000 euros. Payment can be split into up to 8 quarterly instalments, or 12 if the total exceeds 20,000 euros. The concept of “supplementary tax” is abolished; only “main” and “complementary” taxes remain.

Rates and exemptions: now part of the Consolidated Law

Updated Article 7 of the TUS incorporates rates and exemptions previously found in external laws:

• 4%: spouse and direct-line relatives (exemption for amounts up to 1 million euros per person)
• 6%: siblings (exemption for amounts up to 100,000 euros)
• 6%: other relatives up to the 4th degree and in-laws up to the 3rd degree (no exemption)
• 8%: all other subjects (no exemption)
• 1,500,000 euros exemption for severely disabled individuals (Art. 3, paragraph 3, Law 104/1992)

The same rules apply to donations, harmonizing the rates in Article 56 of the TUS.

Inheritance tax return: mandatory electronic filing

The new Article 28 of the TUS mandates electronic filing of the inheritance tax return, except for non-residents, who may submit it by registered mail or equivalent means. Among those required to file, trustees are now included in the case of testamentary trusts.

The return:

• Must be submitted within 12 months of notification of the trustee’s appointment;
• Is deemed null and void if not submitted using the approved form (Measure No. 47335 of 13/02/2025);
• Must be signed by at least one liable party or their legal representative.

Indirect gifts: new assessment rules

Circular No. 3/2025 clarifies the revised Article 56-bis: indirect gifts (e.g., payment of property on behalf of a child) are now subject to tax only if disclosed during tax proceedings.

The threshold of 350 million lire (180,769 euros), previously required for assessment, has been eliminated. Now, any indirect donation declared during tax proceedings may be taxed at 8% on the portion exceeding the exemption threshold.

Voluntary registration of the deed is also possible, with the tax applied according to the rates and exemptions of the TUS.

Gift accumulation: only for exemption thresholds

The new framework eliminates inheritance tax accumulation, repealing Article 8, paragraph 4 of the TUS. Gift accumulation remains applicable, but only for calculating exemption thresholds:

• The values of previous gifts between the same donor and beneficiary are revalued to present value;
• Excluded are gifts made from 25/10/2001 to 28/11/2006, those subject to fixed tax, and those listed in Article 1, paragraph 4 of the TUS.

Penalties: reductions from September 1, 2024

Legislative Decree No. 87/2024 lightens the penalty system:

Failure to file the return

• Fixed penalty: 120% of the tax due (previously 120%–240%)
• If delay is within 30 days: 45% (previously 60%–120%)
• If no tax is due: 250–1,000 euros

Incorrect return

• Penalty: 80% of the underpaid tax (previously 100%–200%)
• Formal violations: 250–1,000 euros (previously 500,000–2 million lire)

Other violations

• Assets of cultural interest: penalty of 80% (previously 100%–200%)
• Third parties (e.g., banks, institutions): 250–2,000 euros
• Automatic liability of legal representatives is abolished

The legislative package enacted in 2024 and effective from 2025 marks a turning point in the Tax Authority's approach to inheritance and gifts: greater simplification, increased transparency, but also more responsibility for the taxpayer. While easing some obligations, the new provisions broaden the scope of tax oversight, especially for informal or indirect transfers. This is why it is important to rely on professionals, such as those at Agenzia delle Successioni, to avoid errors that could have consequences for the succession or the donation.