Planning to buy a holiday home or invest in Italian real estate? Until recently, a property that had once been gifted could expose buyers to inheritance claims years after the purchase. A recent reform has made these transactions much safer.
Imagine deciding to buy an apartment in Milan or a villa in Tuscany, only to discover that the seller received it as a gift. Until recently, this detail could be a serious obstacle: even after paying the full purchase price, buyers could risk losing the property because of an inheritance dispute.
Why were donated properties considered risky?
In Italy, certain close relatives, mainly spouses and children, are entitled to a legally reserved share of a deceased person’s estate (forced heirs). If a lifetime gift left one of these relatives with less than that share, they could ask a court to reduce the gift (azione di riduzione) and, under certain conditions, bring an action for restitution (azione di restituzione) against a subsequent buyer.
The risk followed the property, even where it had been sold to an unrelated purchaser acting in good faith. Banks could also be reluctant to finance such properties, as an inheritance claim could undermine the mortgage securing their loan.
What has changed?
Law No. 182 of 2 December 2025, in force since 18 December 2025, has changed this approach by amending Articles 561 and 563 of the Italian Civil Code.
Under the revised Article 563, a successful claim for reduction generally no longer allows an heir to recover the property from someone who purchased it for value. Instead, the heir has a monetary claim against the original recipient of the gift (the donee), to the extent necessary to restore their reserved share.
In practice, the buyer is generally protected from losing the property, while the heir may be unable to recover the full amount if the donee cannot pay. If, however, the property has been transferred to someone else without payment (for example, as another gift), the subsequent recipient may also be required to compensate the heir if the donee is insolvent, up to the value of the benefit received.
Greater certainty for buyers and banks
The reform also removes a major obstacle to mortgage lending. Previously, a reduction of the donation could extinguish mortgages created by the donee, leaving lenders without their security.
Under the revised Article 561, mortgages and other charges created by the donee generally remain effective even if the donation is reduced. This gives banks greater certainty and can make financing easier to obtain.
What about earlier donations?
What matters is when the donor died, not when the property was gifted. The new rules apply to estates opened after 18 December 2025, even for older gifts.
For estates opened before that date, the former rules may still apply where a claim for reduction or a formal objection was properly notified and registered by 18 June 2026, or where an earlier objection remains effective. Otherwise, the new protection generally extends to those older estates too.
What should buyers know?
This is a major improvement, but due diligence still matters. Buyers should check the property’s ownership history and land registry records: a reduction claim registered before their acquisition may still affect their rights. Other standard checks, including mortgages, planning and building compliance, remain essential.
In conclusion, a past donation need no longer be a deal-breaker. For those looking to purchase a second home or invest in Italy, the reform removes a long-standing source of uncertainty and offers greater confidence in the transaction.
