Donations residing abroad, rules and taxation

The regulations on donations in Italy have very precise rules, with the obligation of a notarial deed for some transfers and a well-defined taxation method which also depends on the kinship relationship between donor and donee.
But what changes if one of the two is resident abroad? Many ask themselves this question, not knowing whether Italian law, with the related tax obligations, or another country's should be applied.
For example, there are parents with children living abroad who want to contribute to the purchase of a house or a car, but also residents in Italy who are about to receive gifts from relatives living elsewhere and do not know what discipline to apply.
Let's see what the rules are for donations for those living abroad and what taxes must be paid.
Donor or donee residing abroad The legislation on donations, including that which concerns residents abroad, takes into account an important distinction, namely the difference between donor and donee.
The donor is the person who makes the donation and suffers impoverishment, that is, the person who has given away money or goods.
The donee, therefore, is the person who receives the donation and observes enrichment.
Consequently, the donor is the one who must take care of all the obligations relating to the validity of the donation, while the donee is required to pay the inheritance tax, according to the parameters defined by law.
Donations to residents abroad There may be a need for a donation from an Italian resident to people who live abroad, both in the European Union and outside.
The most common case is the one already mentioned of donations to children residing abroad, but it can be any other person.
The issue is governed by Article 2 of the Consolidated Law on Inheritance and Donation Taxes (TUS), according to which if the donor resides in Italy the tax is also due in Italy.
The principle of territoriality of the tax is also reiterated by answer no.
464/2019 of the Revenue Agency, according to which tax is due for all assets and rights transferred by the resident in Italy, but not only.
In the event that the donor does not reside in Italy, donation tax is still due for assets and rights existing here, including properties on Italian territory and money in current accounts in Italian institutions.
Donations from abroad The principle of territoriality of the inheritance tax envisaged by our system means that for transfers from abroad, residents in Italy must pay the tax here limited to the assets and rights present in our territory.
For other assets, the donor must instead inform himself about the rules of the country of residence.
It should be noted that together with the principles on taxation, the other rules of the Italian legislation on donations also apply, including the obligation of a notarial deed for those exceeding the modest value, the deductibles and the rates.
read also Donation between parents and children without taxation, here's when Donations abroad Finally, the situation is even different when the donation actually takes place abroad, between one or both Italian citizens.
As a rule, the rules already stated which depend on the donor's residence apply, but when the assets are not located on Italian territory it may be necessary to follow other requirements.
In these cases, the deed of donation can be completed directly abroad, following the legislation of the host country.
Having the assistance of a lawyer is a must to avoid mistakes, also because the issue is quite complex.
Jurisprudence is divided on the applicability of the Italian gift tax to deeds completed abroad, although it is still necessary to take into account the agreements against double taxation.
These are agreements with which states decide which obligations free citizens from obligations when both laws are involved, to avoid double rules.
Obviously, this is not relevant for donations of modest value, for which a notarial deed is not necessary.
read also Is a notary always necessary for the donation?