Rome: Italy’s light-handed inheritance tax regime is drawing sharp criticism from economists, who argue that the country’s extremely low levy on inherited wealth is deepening inequality, entrenching privilege across generations, and leaving vital public resources untapped. According to recent estimates, Italy taxes inherited wealth at an average rate below 0.5%, a figure that is dramatically lower than the global norm, and significantly undercuts tax receipts compared to peer nations.

In 2024, Italy saw around €243 billion in wealth passed down to heirs equivalent to astonishing 14% of its GDP. Despite this massive transfer of wealth, inheritance tax contributed only €1 billion to state coffers last year. In contrast, countries like France and Germany raised approximately €21 billion an

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