International Succession Italy-USA
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.
An estate with assets in both Italy and the United States
The cross-border succession problem
- An Italian citizen owning US-situs assets at death is subject to US federal estate tax with only a $60,000 exemption (vs $13.6M for US citizens)
- Italian inheritance tax also applies, with up to 8% rate for distant relatives
- Florida real estate triggers probate proceedings that can freeze the asset for 6-18 months
- Italian forced heirship (legittima) applies to Italian citizens regardless of where they die
- FIRPTA imposes 15% withholding on US real estate sales by non-residents — including by heirs after inheritance
What the international succession service covers
Service scope
- Pre-mortem estate review: map US estate tax exposure and design protection structures
- LLC restructuring to shift the situs of US real estate (the Italian owns LLC interest, not real property directly)
- Italian cross-border will coordination with notai
- EU Reg. 650/2012 election analysis (Italian citizens can elect Italian law to govern entire estate)
- QDOT (Qualified Domestic Trust) advisory for non-citizen surviving spouses
- FIRPTA compliance: 15% withholding on US real estate sales, withholding-certificate applications
- Post-mortem support: probate coordination, IRS Form 706-NA filing, Italian succession declaration
Heirs and testators with cross-border assets
Who it's for
- Italian citizens owning Florida real estate
- Italian-American families with mixed citizenship and US assets
- Heirs of an Italian decedent who held US property
- Italian residents with US brokerage accounts above $60,000
Cost of an international succession review
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.
U.S. estate tax and Italian succession: direct answers
Do Italian citizens pay US estate tax when they die owning a Florida property?
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%.
What is the $60,000 exemption for non-resident aliens?
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.
Can I avoid US estate tax by putting my Florida property in an LLC?
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.
Does the Italy-USA tax treaty help with estate tax?
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.
What happens to my Florida property if I die without a US will?
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.
What is FIRPTA and do I have to pay it when selling my condo?
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.
Related services
- Florida Real Estate for Italians — Full Italian fiscal lifecycle of US real estate ownership: purchase, holding, rental, sale, succession.
- Italy-US Compliance Diagnostic — 75-minute structured session and written report mapping every Italian fiscal and legal exposure tied to your US structure.
- US Exit Tax & Expatriation — Advisory and planning for long-term Green Card holders surrendering their card, and for US citizens renouncing citizenship — covering covered-expatriate status, mark-to-market rule and Italian re-entry.
Guides related to this service
- I'm Italian and Own Assets in the U.S.: What Happens to Them When I Die? — An Italian resident owning U.S. real estate, U.S. shares or a Florida LLC interest can be exposed to U.S. federal estate tax on U.S.-situated assets above the $
- Selling into the U.S. Without a U.S. Entity: USTB, ECI and the Italy–U.S. Treaty — An Italian company can sell to U.S. customers without a U.S. subsidiary, but that does not mean no U.S. tax. How the U.S. trade or business and ECI tests intera
- Florida Has No State Income Tax: What It Means for Your LLC, and What It Doesn't — Florida has no personal income tax, but an LLC taxed as a corporation pays the 5.5% Florida corporate income tax after a $50,000 exemption. How classification c
- Beneficial Ownership Reporting After the FinCEN August 2026 Final Rule — On 11 August 2026 FinCEN permanently ended BOI reporting for US companies. Certain foreign entities registered in the US remain in scope, and federal tax report
- Florida LLC Sales Tax: Registration, Nexus and the $100,000 Remote Sales Rule — A Florida LLC does not automatically mean "no sales tax". The 6% state rate, county surtax, dealer registration, nexus, the $100,000 remote-seller threshold, ma
- Choosing the Right U.S. State for a Foreign-Founder LLC: Delaware, Florida, Wyoming and the Trade-offs — Delaware, Florida or Wyoming for an Italian-owned US LLC? A practical comparison of state fees, disclosure, taxation, banking friction and the interface with th
Next step — book a 45-minute online consultation
Book a consultation (USD 250 · 45 minutes) · Send a contact request
About the firm
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. 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 · 1200 Brickell Ave, Suite 310, Miami, FL 33131 · us@3lex.us · +1 (786) 604-8763 · +39 335 344 9660
Versione italiana
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.