Gift Tax on Money Given to Non-Relatives in Italy

Navigating the fiscal landscape of financial gifts in Italy is essential for expats and residents alike. This guide explores the specific tax rates, legal requirements, and essential reporting procedures for transferring money to non-relatives under Italian law.

Understanding the Italian Gift Tax Framework

Relocating to Italy often involves complex financial maneuvers, from purchasing property to supporting friends or charitable causes. However, the Italian tax system, managed by the Agenzia delle Entrate, maintains strict oversight on the transfer of wealth. While many are familiar with the concept of inheritance tax, the gift tax (imposta sulle donazioni) is an equally critical component of the national fiscal code.

The rules surrounding the taxation of gifts remain highly structured based on the relationship between the donor and the recipient. For transfers involving non-relatives, the law is particularly stringent. Unlike gifts between close family members, which enjoy high exemption thresholds, money given to friends, partners, or acquaintances is subject to tax from the very first Euro in most cases. Understanding these nuances is a vital part of Handling Finances as an Expat in Italy: from Taxes to Investments to ensure your generosity doesn’t lead to unexpected legal complications.

The Concept of Donazione in Italian Law

Under the Italian Civil Code, a gift is defined as a contract where one party, out of a spirit of liberality (spirito di liberalità), enriches another by transferring a right or assuming an obligation. For the tax authorities, it doesn’t matter if the gift is meant to help a friend with a down payment or simply a gesture of goodwill; if it results in an enrichment of the recipient’s assets, it is potentially taxable.

For expatriates, these rules apply regardless of whether the money is transferred between Italian bank accounts or involves international transfers. If the donor is a resident of Italy, the gift tax applies to their worldwide assets. If the donor is a non-resident, the tax only applies to assets physically located in Italy. This global reach makes it essential to understand the Italy’s Tax Treaties: Avoiding Double Taxation if you are planning cross-border gifts.

Gift Tax Rates for Non-Relatives

In Italy, the “non-relative” category is the most heavily taxed bracket for gifts and inheritances. This category includes friends, unmarried partners (not in a civil union), and any distant relatives beyond the fourth degree.

For these individuals, there is no tax-free allowance (franchigia). This means that every cent gifted is technically subject to the tax rate. As of 2026, the tax rate for money given to non-relatives is fixed at 8%.

The Comparison of Relationship Brackets

To put this 8% into perspective, it helps to compare it with other family categories. Spouses and children enjoy a €1,000,000 exemption before paying a 4% rate. Siblings have a €100,000 exemption and a 6% rate. The lack of an exemption for non-relatives is a deliberate policy to keep wealth within the primary family unit. If you are a resident supporting a partner you are not legally married to, you must account for this 8% “hit” on any significant transfers. Properly Managing Your Budget in Italy: Banking, Currency, and Transfers requires factoring in these potential fiscal drains.

The Role of the Notary in Financial Gifts

In Italy, the validity of a gift of significant value (donazione di non modico valore) depends on a formal public deed (atto pubblico) drafted by a notary in the presence of two witnesses.

What Defines Significant Value

The law does not provide a specific Euro amount to define “significant value.” Instead, it is relative to the economic status of the donor. A gift of €5,000 might be “modest” for a millionaire but “significant” for an average pensioner. If a gift is deemed significant and is not legalized by a notary, the contract is technically null and void, and the Agenzia delle Entrate can intervene with penalties.

Notary Fees and Registration

When a notary formalizes a gift, they also handle the registration of the deed. In addition to the 8% gift tax, you will be responsible for notary fees and small fixed registration taxes. While this adds to the cost, it provides legal certainty and protects the recipient from future claims by the donor’s heirs. This is especially relevant when Italy’s Inheritance and Gift Tax Exemptions are being considered by a family office or during estate planning.

Table: Gift Tax Rates and Exemptions in Italy 2026

Relationship to Donor	Tax-Free Allowance (Exemption)	Tax Rate (Above Exemption)
Spouse / Children (Direct Line)	€1,000,000	4%
Siblings	€100,000	6%
Relatives up to 4th Degree	None	6%
Non-Relatives / Friends	None	8%
Recipients with Severe Disability	€1,500,000	4%, 6%, or 8% (by relation)

Indirect Gifts and the Liberalità d’Uso

Not every exchange of money requires a notary or a tax payment. Italian law recognizes two main exceptions that are particularly relevant for daily life: the Liberalità d’Uso and Indirect Gifts.

Liberalità d’Uso

These are gifts given in accordance with social customs, such as wedding presents or birthday money. These are generally exempt from gift tax and do not require a notary, provided the amount is reasonable given the occasion and the donor’s wealth.

Indirect Gifts (Donazione Indiretta)

An indirect gift occurs when you achieve the result of a gift through a different type of contract. A common example is a parent (or a friend) paying the seller directly when a third party buys a house. While these are still technically subject to the 8% rate for non-relatives, they are often exempt from the formal “notary deed” requirement if they are linked to a transaction that already requires a notary, like a property sale. However, the tax itself is still due and must be declared during the Buying Property in Italy: What Foreigners Need to Know process to avoid future audits.

Reporting and Paying the Tax

If you receive a taxable gift from a non-relative, the onus is on the recipient to ensure the tax is paid, although the donor is often jointly liable.

1. Declaration: If a notary is involved, they will file the denuncia di donazione. If it is a private transfer, the recipient must file form Modello 4 at the local Agenzia delle Entrate office.
2. Payment: The 8% tax must be paid via the F24 payment system.
3. Traceability: In 2026, Italy has strict anti-money laundering laws. Large transfers should always be made via bank transfer (bonifico) with a clear description (causale) stating “Donazione.”

Failure to report a gift can lead to penalties ranging from 120% to 240% of the unpaid tax. Furthermore, the Agenzia delle Entrate uses an automated system called the Redditometro to compare a resident’s spending with their declared income. If a friend gifts you a car and you haven’t declared the gift, the system will flag the purchase as “unexplained wealth.”

Conclusion

The 8% gift tax on money given to non-relatives in Italy is a significant factor for any expatriate managing wealth within the country. While the law allows for small tokens of affection through liberalità d’uso, any substantial transfer of funds to a friend or partner is viewed as a taxable event by the state.

By utilizing professional services and understanding the Why Codice Fiscale Is Essential for Foreigners in Italy for all financial registrations, you can ensure that your generosity remains a positive experience rather than a tax nightmare. Whether you are gifting for a specific milestone or simply helping someone in need, transparency and legal adherence are the keys to fiscal peace of mind in Italy.

References

Primary sources (official)

• Agenzia delle Entrate – Imposta sulle Successioni e Donazioni: The official guide from the Italian Revenue Agency regarding rates and thresholds. https://www.agenziaentrate.gov.it/portale/schede/pagamenti/imposta-di-successione/aliquote-e-franchigie-successioni
• Ministero della Giustizia – Codice Civile (Art. 769-809): The Italian Civil Code sections governing the legal definition and requirements of gifts. https://www.normattiva.it/uri-res/lazysta?azione=ricerca&codiceFiscale=00000000000

Other helpful sources

• Consiglio Nazionale del Notariato: A guide from the National Council of Notaries on how to correctly formalize a gift in Italy. https://www.notariato.it/it/famiglia/donazioni
• PwC Italy Tax Summary: Technical breakdown of gift and inheritance taxes for international residents. https://taxsummaries.pwc.com/italy/individual/other-taxes

Disclaimer

The information provided in this article is for general informational and educational purposes only and does not constitute professional financial, tax, or legal advice. Italian tax laws and the interpretation of gift tax regulations are subject to frequent change. Every financial situation is unique; therefore, it is highly recommended to consult with a certified Italian accountant (commercialista) or a notary before making significant financial gifts or transfers in Italy.