ITALY Law and Practice Contributed by: Paolo Ludovici and Andrea Mirabella, Gatti, Pavesi, Bianchi, Ludovici
Property acquired during the marriage or civil union is generally owned jointly in equal shares, except for “personal assets”, such as property owned before the marriage or acquired by gift or inheritance. Community property may be enforced by the personal creditors of one spouse only after that spouse’s sepa - rate assets have been exhausted, and only up to the debtor’s share of the common assets, without preju - dice to the rights of the community’s own creditors. Separation of Property Regime Spouses (and civil union partners) may opt for the legal separation of property regime, under which the spouses remain the exclusive owners of the property acquired by them both before and after the marriage. Conventional Community of Property Conventional community of property is a regime of legal community of property modified by mutual agreement between the spouses, within certain limits. Pre-Nuptial Agreements Pre-nuptial agreements are not provided for by Italian law. Historically, the Italian Supreme Court has always deemed null and void any agreement made in con - templation of a future divorce. However, Italian case law has progressively recog - nised greater contractual autonomy between spous - es, moving away from the traditional view that agree - ments governing the financial consequences of a future separation or divorce were void. This approach was reaffirmed by the Italian Supreme Court (Order No 20415 of 21 July 2025), which held that such agreements are, in principle, valid and enforceable provided they do not conflict with man - Transactions that do not result in taxable capital gains include gratuitous transfers, such as successions and gifts. With reference to shareholdings, taxable capital gains are determined as the difference between considera - tion received and cost or the purchase value subject datory law or public policy. 2.5 Transfer of Property
to taxation, increased by any charge inherent in their production, including inheritance and gift tax, exclud - ing interest expense. In the case of acquisition by inheritance, the value defined or declared for inheritance tax purposes is assumed to be the cost. For shareholdings exempt from inheritance tax, the fair value at the date of the opening of the inheritance is adopted. In the case of acquisition by donation, the donor’s cost is assumed as the cost. 2.6 Transfer of Assets: Vehicle and Planning Mechanisms The Italian legal and tax system provides some tools that allow taxation on transfers of assets to be reduced or postponed, if not eliminated altogether. Donation of Bare Ownership The usufruct is a right in rem allowing the holder to use and enjoy another person’s asset and receive its income, without altering its economic purpose. It can - not extend beyond the usufruct holder’s lifetime. An owner may transfer the bare ownership of an asset while retaining the usufruct. Upon expiry of the usu - fruct, full ownership automatically vests in the bare owner. For inheritance and gift tax purposes, the taxable val - ue of the transfer is the value of the bare ownership (ie, the value of the full ownership less the value of the usufruct). The subsequent consolidation of full owner - ship on the usufruct holder’s death is not subject to further inheritance or gift tax. Life Insurance Policy Life insurance policies are, to a certain extent, tax- efficient in Italy and are increasingly being used as investment/wealth planning vehicles. Income taxation is deferred at the time of the partial or full surrender or at the time of the payment to the beneficiary. However, no income tax is levied on the portion referred to demographic risk of the policy.
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