Donations and inheritances: what’s new

How not to pay the notary and donation taxes. The news regarding inheritance declaration and tax settlement.

2024 represents a turning point in the relevant legislation donations and inheritances. These changes – deriving both from new interpretative guidelines from the Court of Cassation and from the recent tax reform – promise significant economic benefits for citizens. In a particularly delicate period for Italian families, the innovations represent a chance to lighten the tax burden and facilitate the management of family assets.

Let’s see what they are news regarding donations and inheritancesin order to offer valid support to those who intend to register an asset or transfer it to their heirs.

Donations without a notary

The first innovation derives from the affirmation of an important principle by the Court of Cassation: a donation can be formalized even without the need for a notary, after 20 years have passed since the loan of the house to the donee. Thus, a father who wants to transfer his property to his son will be able to grant him possession and after twenty years proceed through the assessment of adverse possession even just in a mediation body, without the need for the Court. This interpretation, anticipated in the past by some Courts, has now received maximum recognition with sentence no. 483/2024 of 8 January 2024 of the Supreme Court.

On this point, read: How to register a house without a notary

Purchase of houses for children without paying taxes and notary

Big news for parents who want to give their children a house by buying it for them or giving them the money to pay the seller. In fact, these acts of donation (technically called “indirect donations”) will no longer be subject to taxation. The Court of Cassation has always said this, with sentence no. 7442 of 20 March 2024. The Court thus rejected the actions of the Revenue Agency (see circular no. 30/2015), establishing that informal and indirect donations are not subject to registration and therefore

they do not discount the registration tax.

Obviously, the tax on the deed of sale will remain according to normal taxation.

On this point, read What changes for donations in 2024?

Donations and successions of SRL shares and SPA shares

The transfer of company shares and shares of joint-stock companies and cooperative societies, made by way of donation or inheritance in favor of descendants he was born in spouseis not subject to tax when it is aimed at acquiring the legal control of the company (in accordance with the provisions of the Civil Code) or the existing control is integrated.

In particular, the transfer is not subject to inheritance and gift tax:

• in the case of companies or branches thereof, provided that the donees continue to carry out the business activity for a period of no less than five years from the date of transfer;
• in the case of company shares or shares of joint-stock companies, provided that the donees hold control of the company for a period of no less than 5 years from the date of the transfer;
• in the case of other social shares, provided that the assignees hold ownership of the transferred right for a period of no less than five years from the date of the transfer.

Self-assessment of inheritance taxes

The principle of self-assessment, already applied to mortgage, land registry, stamp duty and mortgage taxes, is also extended to inheritance tax. Consequently, the rules relating to the procedure for liquidation and payment of this tax have been modified. In particular, it is established that the inheritance tax is paid directly by the subjects required to pay it, based on the declarations presented. Payment must be made within 90 days of the deadline for submitting the return. There is the possibility of paying the amount in installments, making an initial payment of 20% within the aforementioned deadline and dividing the remaining balance into quarterly instalments, up to a maximum of 12. It is necessary to provide a specific communication within the declaration to avail of the installment plan.