An Italian who dies owning a $500,000 Florida condo without planning may expose heirs to ~$176,000 in US federal estate tax. The exemption for non-resident aliens is only $60,000.
Cross-border estate planning and post-mortem advisory for Italian-American families: US estate tax for non-residents, FIRPTA, EU Reg. 650/2012, Italian forced heirship.
The cross-border succession problem
Service scope
Who it's for
Pricing
Fixed fee defined case-by-case after a preliminary consultation, based on the assets involved (US real estate, brokerage, LLC interests), whether pre-mortem restructuring is required and whether post-mortem coordination is needed. The preliminary consultation is a 45-minute paid online session ($250); the engagement letter with the agreed fee is signed before any chargeable work begins.
Yes. Italian citizens who are not US residents and not US citizens are non-resident aliens (NRAs) for US estate tax purposes. They are taxed only on US-situs assets, but with a federal exemption of only $60,000 — versus $13.6 million for US citizens. Any value above $60,000 is taxed up to 40%.
Under IRC §2102(b), non-resident aliens have a unified credit equivalent to a $60,000 exemption (i.e. credit of $13,000) on US-situs assets. The Italy-USA Estate Tax Treaty does not raise this threshold materially. This is the single most underestimated risk for Italian property owners in Florida.
An LLC interest is generally treated as intangible personal property, which under US tax rules has its situs at the owner's residence — not in the US. Properly structured, holding Florida real estate through an LLC owned by a non-US resident may shift the asset out of US-situs and avoid US estate tax. This is sophisticated planning that requires correct structure, capitalization, and operation; it is not a do-it-yourself fix.
There is a separate Italy-USA Estate Tax Convention, but it is limited and does not raise the $60,000 NRA exemption to the US-citizen level. It mainly avoids true double taxation by allocating taxing rights and granting credits. Planning is still essential.
Florida law administers the property under intestacy unless you elected Italian law under EU Reg. 650/2012 in a valid Italian will. Probate in Florida can take 6–18 months and freezes the property. We recommend coordinated Italian + Florida testamentary planning.
FIRPTA (Foreign Investment in Real Property Tax Act) requires the US buyer to withhold 15% of the gross sale price when a non-resident seller transfers US real estate. The seller files a US tax return (Form 1040-NR) to compute the actual tax due and may receive a refund of the excess. A withholding certificate (Form 8288-B) can pre-emptively reduce the withholding when the actual gain is lower.
International Succession Italy-USA is handled from our Florida practice for Italian clients living in the United States and in Italy: office in St. Petersburg (Pinellas County, Tampa Bay), assistance across Florida — including Miami and South Florida — and remotely throughout Italy.
Physical office (by appointment): IIILEX International Consulting LLC, 7901 4th St N STE 300, St. Petersburg, FL 33702, US · +1 (786) 604-8763 · +39 335 344 9660 · us@3lex.us
Office hours: Monday to Friday, 09:00–18:00 (US Eastern Time). Italian clients are also served in the Italian morning window (CET). Working languages: Italian and English.
Consultations are held online (video call) or in person at the St. Petersburg office. Documents are exchanged securely by e-mail.
Book a consultation (USD 250 · 45 minutes) · Send a contact request
IIILEX International Consulting LLC is the Florida-based practice of Avv. Dott. Massimo Leonardi — Italian-qualified Attorney (Avvocato), Dottore Commercialista and Statutory Auditor (Revisore Legale), qualified in Italy, with 30+ years of Italian practice. We work exclusively on cross-border matters between Italy and the United States, in coordination with licensed U.S. professionals for matters of U.S. law.
IIILEX International Consulting LLC · 7901 4th St N STE 300, St. Petersburg, FL 33702 · us@3lex.us · +1 (786) 604-8763 · +39 335 344 9660
Massimo Leonardi is admitted to practice law in Italy and is not admitted to practice law in Florida or elsewhere in the United States. He is qualified in Italy as Dottore Commercialista and Revisore Legale and is not a U.S. Certified Public Accountant. IIILEX International Consulting LLC provides cross-border consulting and Italian legal and tax advisory services. Matters requiring advice on U.S. or Florida law are handled in coordination with appropriately licensed U.S. professionals.