New Law on real Estate Succession Planning in Italy

Greater Protection for Buyers – More security for Property Owners.

Transferring real estate in Italy often forces property owners to choose between inheritance and gifting (donazione). While gifting has been considered a practical solution, it has frequently come with significant drawbacks – especially when the property was being sold shortly after.

The reason for this lies in the Italian inheritance law, which provides strong protection for heirs entitled to a compulsory share. Even years after a gift, claims could still be filed if family members felt disadvantaged. For buyers this created considerable risk: In the worst case scenario, legal disputes or even reversals of transactions could occur. Banks responded with caution when it came to financing and properties that were gifted were often more difficult to sell. As a result, owners frequently had to consider whether transferring ownership early on might limit future flexibility.

A new legal regulation adopted at the end of 2025, now brings new and improved clarity: In the future, inheritance-related claims will be primarily directed against the recipient of the gift – such as a child – rather than against a future buyer. This significantly reduces the risk for third parties.

The effects are already noticeable: properties originating from gifts are now easier to sell, buyers benefit from greater legal certainty and banks are becoming more open to help financing again. Overall, the reform is leading to increased transparency and renewed momentum in the real estate market.

For property owners this opens up new opportunities. Transferring assets during one’s lifetime becomes more attractive again without automatically endangering a future sale. At the same time, succession planning within the family can be arranged at an early stage

Nevertheless, cautious planning remains essential. Compulsory share rights, tax considerations and notarial structuring should still be reviewed professionally. While the reform improves the framework, it does not replace individual legal advice.

TERRA ITALIA supports you in evaluating the options of gifting and other forms of property succession in Italy together with experienced notaries. We help clarify the legal requirements and carefully prepare the practical steps of a property transfer. Please feel free to contact us if you would like to plan the transfer of your Italian property in a forward looking and legally secure manner.

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