Giving a sum of money to a child, transferring a property to a family member, donating assets to an organization: these are acts of generosity that in Italy may involve paying a specific tax. Gift tax, often underestimated or overlooked, has precise rules that are essential to know before making any free transfer of assets. In this comprehensive guide, we analyze who pays, how much it costs, and how gift tax works in 2026.

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What Is Gift Tax

Gift tax is a levy on the free transfer of assets and rights between living persons. Every time a person (the donor) freely transfers ownership of an asset to another person (the donee or beneficiary), the obligation to pay this tax may arise.

Gift tax is governed by the same Consolidated Text that regulates inheritance tax (Legislative Decree 346/1990) and shares its rates and exemptions. This parallel is not coincidental: both gifts and inheritances represent free transfers of wealth, with the difference that a gift occurs between living persons and at the donor's will.

When the Obligation Triggers

The tax applies to all gifts formalized with a notarial deed (public act), which is required by law for real estate donations and for donations of movable property of non-modest value. The notary handles the registration of the deed and the tax payment.

For donations of modest value of movable property (the so-called "gift"), a notarial deed is not required and the tax is generally not paid. "Modesty" is evaluated relative to the donor's financial situation: a 500 euro gift is modest for an entrepreneur, but might not be for a retiree on minimum pension.

Gift Tax Rates

Gift tax rates are identical to those for inheritance and depend on the relationship between the donor and the beneficiary.

4% - Spouse and Direct-Line Relatives

For gifts to the spouse (or civil union partner), children (including adopted children), parents, and direct descendants (grandchildren, great-grandchildren), the rate is 4% with an exemption of 1,000,000 euros per beneficiary.

The exemption is individual: a parent can donate 1 million euros to each child without anyone paying tax. If there are three children, the total exempt transfer is 3 million euros. However, beware: the exemption is calculated by aggregating all gifts made over time between the same parties.

6% - Siblings

For gifts to brothers and sisters, the rate is 6% with an exemption of 100,000 euros per beneficiary. The exemption is considerably lower than that for spouses and children, reflecting a less close family bond in the eyes of the legislator.

6% - Other Relatives and In-Laws (Without Exemption)

For gifts to other relatives up to the 4th degree and in-laws up to the 3rd degree, the rate is 6% without any exemption. The tax is applied to the entire value of the donated asset.

8% - Non-Relatives and Other Parties

For gifts to all other parties (friends, non-registered domestic partners, relatives beyond the 4th degree), the rate is 8% without exemption. This is the maximum rate provided by the Italian system.

Exemption for Severe Disability

Beneficiaries with severe disabilities (under Law 104/1992, art. 3, paragraph 3) enjoy a raised exemption of 1,500,000 euros, regardless of the relationship with the donor.

The Aggregation Principle: Beware of Repeated Gifts

One of the most important and least known aspects of gift tax is the aggregation principle. Exemptions are not renewed with each gift: all gifts made over time between the same parties are aggregated for the purpose of calculating the remaining exemption.

Let's make a concrete example: a father donates 600,000 euros to his son in 2020. In 2026, the same father wants to donate another 500,000 euros to the same son. The 1,000,000 euro exemption has already been used for 600,000 euros, so only 400,000 remain. On the second gift, the first 400,000 euros will be exempt, while the remaining 100,000 euros will be taxed at 4% = 4,000 euros.

Furthermore, gifts made during one's lifetime are also aggregated with any future inheritance: if the same father dies and the son inherits additional assets, the remaining exemption for the inheritance will take into account the gifts already received.

Real Estate Gifts: Additional Taxes

When the gift involves real estate, in addition to gift tax, the following taxes apply:

  • Mortgage tax (imposta ipotecaria): 2% of the property's cadastral value (minimum 200 euros).
  • Cadastral tax (imposta catastale): 1% of the property's cadastral value (minimum 200 euros).
  • Registration tax (imposta di registro): fixed 200 euros.
  • Stamp duty (imposta di bollo): 230 euros.
  • Mortgage fee (tassa ipotecaria): 90 euros.
  • Cadastral transfer (voltura catastale): 55 euros.

In addition, there are notarial fees, which vary based on the property value and complexity of the deed, generally between 1,500 and 5,000 euros.

Primary Residence Relief for Gifts

If the gift recipient has the requirements for the primary residence relief, the mortgage and cadastral taxes are reduced to 200 euros each (fixed amount). The requirements are:

  • Not owning other properties purchased with the primary residence relief anywhere in the country.
  • Not owning other residential properties in the municipality where the donated property is located.
  • Committing to establishing residence in the municipality of the property within 18 months.
  • The property must not belong to luxury cadastral categories (A/1, A/8, A/9).

Indirect Gifts: A Tricky Area

Not all gifts require a notarial deed to be taxed. So-called indirect gifts occur when the free transfer happens through a transaction that is not formally a gift. The most common examples include:

  • Bank transfer: a parent transfers a sum to their child via wire transfer. If the amount is significant, the tax authority may classify it as an indirect gift.
  • Payment of another's debt: a parent pays their child's mortgage.
  • Registering an asset in a third party's name: a parent buys a property and registers it in the child's name.

Indirect gifts are subject to gift tax only if they result from registered deeds or if they are voluntarily declared by the taxpayer. However, the tax authority can challenge them during an audit.

Donations to Non-Profit Organizations: Exemption and Tax Benefits

Donations to certain entities are completely exempt from gift tax:

  • The State, Regions, Provinces, Municipalities and other public territorial entities.
  • Legally recognized foundations and associations with public utility purposes.
  • ONLUS (Non-Profit Organizations of Social Utility).
  • Third Sector Entities (ETS) registered in the RUNTS (National Single Registry of the Third Sector).
  • Volunteer organizations and social promotion associations.

In addition to the tax exemption, individual donors can benefit from a 30% IRPEF tax credit (up to 30,000 euros in donations) or income deductions (up to 10% of declared income) for charitable contributions to Third Sector entities and ONLUS. These benefits make donating to non-profit organizations particularly advantageous from a tax perspective.

Gifting as a Wealth Planning Tool

Many families use gifts as a tool for wealth and estate planning. Donating assets during one's lifetime allows you to:

  • Transfer wealth in a controlled and gradual manner.
  • Use the exemptions over time (though subject to the aggregation constraint).
  • Avoid conflicts among future heirs by distributing assets according to your wishes.
  • Benefit from specific tax reliefs (such as the primary residence relief).

However, gifts also carry risks: donated assets may be subject to a reduction claim by forced heirs who believe their legitimate share has been infringed. For this reason, it is always advisable to plan gifts with the assistance of a notary specializing in succession law.

Practical Example: Donating a Property to a Child

Suppose a father donates an apartment to his son with a cadastral value of 150,000 euros and a market value of 250,000 euros, and the son qualifies for the primary residence relief.

  • Gift tax: the value for tax purposes is 150,000 euros (cadastral value). The exemption is 1,000,000 euros. Since the value is below the exemption: 0 euros.
  • Mortgage tax: fixed amount with primary residence relief: 200 euros.
  • Cadastral tax: fixed amount with primary residence relief: 200 euros.
  • Registration tax: 200 euros.
  • Stamp duty, mortgage fee, and cadastral transfer: approximately 375 euros.
  • Total taxes: approximately 975 euros (plus notarial fees).

Without the primary residence relief, the mortgage and cadastral taxes would have been: 150,000 x 2% = 3,000 euros and 150,000 x 1% = 1,500 euros, for an additional 4,500 euros.

Use Our Calculator

Calculating gift tax requires considering the degree of kinship, the type of asset (movable or real estate), the value, the remaining exemption, and any applicable reliefs. Our gift tax calculator simplifies this process: select the relationship, enter the gift value and the type of asset, and immediately get an estimate of the taxes owed with a complete breakdown of every item. An indispensable tool for planning your gifts wisely and without surprises.