The recent tax reform, introduced by Legislative Decree 139/2024 and in force from 1 January 2025, has made significant amendments to the Consolidated Law on Inheritance and Gift Tax (Legislative Decree 346/1990). The changes cover, among other things, the treatment of customary gifts, direct and indirect gifts, tax regimes for trusts, and business assets transferred under family succession agreements.

What Are “Customary Gifts” and Why Are They Exempt from Tax?

Customary gifts are presents or donations that conform to social customs, such as traditional Christmas gifts or presents given on special occasions (celebrations, birthdays). The reform confirms that these gifts do not constitute a true donation and are therefore not subject to gift tax. Gifts made for maintenance or educational purposes also remain exempt, as do donations of modest value.

How Does the 2025 Tax Reform Change the Rules on Indirect Gifts?

Indirect gifts (for example, the purchase of an asset registered in a child’s name but paid for by the parents) are now regulated more clearly:

  • The taxpayer may register them voluntarily, thereby benefiting from the available allowances and standard tax rates;
  • If the transaction is not disclosed and is subsequently identified, the taxpayer risks a tax assessment at a maximum rate of 8%, net of the applicable allowance.

Has the Cumulation Rule for Inheritance Purposes Been Abolished?

Yes. The reform has abolished the cumulation rule for inheritance purposes (coacervo successorio), which previously aggregated prior gifts when calculating inheritance tax. However, for gift tax purposes, the cumulation of prior gifts against available allowances is retained.

How Are Trusts and Other Dedicated Asset Arrangements Taxed?

Under the new legislation, trusts and dedicated asset arrangements are taxed only upon the actual enrichment of the beneficiary. The tax is calculated on the basis of the degree of kinship between the settlor and the beneficiary, thereby avoiding premature taxation on assets not yet effectively received.

What Reliefs Are Available for the Transfer of Business Assets or Shareholdings to Spouses and Descendants?

For businesses, business branches, and shareholdings transferred to spouses or descendants by way of family succession agreements (patti di famiglia), the reform provides an exemption from tax, provided that the beneficiaries continue the business activity for at least five years. In the event of early discontinuation, the reliefs may be withdrawn and the tax recovered accordingly.

How Long Do I Have to Pay Inheritance Tax and What Instalment Options Are Available?

Inheritance tax must be paid within 90 days. Where the amount exceeds €20,000, it is possible to pay in instalments, allowing the tax burden to be managed more easily.

What Happens if I Make an Error in the Inheritance Declaration?

The reform introduces mechanisms to correct any errors in the inheritance declaration, allowing the taxpayer to submit additions or amendments without incurring heavy penalties, provided this is done within the statutory deadlines and in compliance with current legislation.

Are There Special Reliefs for Heirs Under the Age of 26?

Yes, the new legislation provides reliefs for heirs under the age of 26, primarily in relation to the release of assets held within an estate. This enables younger beneficiaries to access inherited assets with reduced costs or administrative burdens.

Conclusions

The 2025 tax reform has a considerable impact on the inheritance and gift tax regime, introducing greater clarity in certain areas (such as indirect gifts) and significant changes (abolition of the cumulation rule for inheritance purposes, new rules for trusts and family businesses). For the correct management of these wealth transfers and to make full use of the available reliefs and allowances, it is advisable to seek professional guidance. For further information or a personalised consultation, please do not hesitate to contact me.