ITALY Law and Practice Contributed by: Paolo Ludovici and Andrea Mirabella, Gatti, Pavesi, Bianchi, Ludovici
10. Charitable Planning 10.1 Charitable Giving
conceived through medically assisted reproduction abroad with their prior consent. In other cases, rec - ognition may be obtained through adoption in special circumstances ( adozione in casi particolari ). For male same-sex couples, as surrogacy is prohibit - ed in Italy, the non-biological parent’s legal recognition generally requires adoption in special circumstances under Article 44 (1)(d) of Law No 184/1983, subject to approval by the Juvenile Court. 9.2 Same-Sex Marriage Law No 76 of 20 May 2016 (“Cirinnà Law”), which came into force on 5 June 2016, regulates same-sex civil unions, recognising almost all the rights granted to married couples (eg, marital and inheritance rights), with some exceptions, the most relevant of which is adoption. Civil unions are not granted the possibility of adopting children. 9.3 Cohabitation and Unmarried Couples Italian law distinguishes between marriage, civil unions and unmarried cohabitation. Although cohabitation is recognised under Law No 76 of 2016 and may be regulated through a cohabitation agreement ( contratto di convivenza ), it does not confer the same rights as marriage or a civil union. Unlike spouses and civil partners, cohabiting partners have no statutory inheritance rights and are not pro - tected by the Italian forced heirship regime. Accord - ingly, testamentary planning is essential if assets are to pass to the surviving partner. The tax treatment is also less favourable. Transfers between spouses and civil partners benefit from a EUR1 million exemption and a 4% inheritance and gift tax rate on the excess, whereas transfers to unmarried cohabiting partners are generally subject to tax at 8% with no exemption.
Taxpayers who make charitable donations to certain categories of entities of special social relevance are entitled to tax benefits in the form of tax deductions (from 19% to 35%) or in the form of deductions from taxable income or, in certain cases, in the form of tax credits (eg, in the case of a donation in support of culture, the so-called “art bonus”). In addition, donations to charitable entities (eg, third- sector entities) are exempt from inheritance and gift taxes (see 1.2 Exemptions ). 10.2 Common Charitable Structures Historically, the most widely used instrument for carry - ing out philanthropic and charitable activities has been the foundation (see 3.1 Types of Trusts, Foundations or Similar Entities ). A foundation may qualify as a third sector entity if it is pursuing, on a non-profit basis, civic, solidaristic and socially useful purposes and enrols with the Single National Register of the Third Sector ( Registro unico nazionale del Terzo settore , RUNTS). The ONLUS regime was repealed with effect from 1 January 2026. From that date, the tax provisions of the Third Sector Code (Legislative Decree No 117/2017), as amended in 2025, became fully effective and apply to qualifying Third Sector entities. Trusts have also been used to carry out charitable activities as they have been allowed to qualify as ONLUS. However, following the reform of the third sector by the Ministry of Labour, in its Circular Letter No 9/2022, as of the time of writing, trusts cannot qualify as third sector entities and benefit from the related advantages, including tax benefits.
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