Assets

Successions with assets abroad: French taxes and the Armani case

The designer's Essilor Luxottica share package will follow the rules of Paris

by Angelo Busani and Xaviera Favrie*

22 October 2025

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3' min read

Translated by AI

Versione italiana

Key points

Resident with assets abroad
The Italy-France Convention
The differences between the two countries
The taxable amount of units and shares

3' min read

Translated by AI

Versione italiana

Agli eredi di una persona residente in Italia può costare cara la scelta del de cuius di intestarsi direttamente (e non, ad esempio, attraverso una “società veicolo” con sede in Italia) beni “esistenti” in uno Stato che applica un prelievo più alto dell’imposta di successione italiana: si pensi al caso degli immobili ubicati in Francia o alle quote di partecipazione in società con sede legale in Francia. È quello che potrebbe accadere nella successione diGiorgio Armani, che era accreditato come titolare di circa il 2% del capitale di Essilor Luxottica (società con sede a Parigi e quotata all’Euronext Paris): un pacchetto che, il 4 settembre, valeva circa 2,4 miliardi di euro.

Resident with assets abroad

In the case of a natural person with residence in Italy (citizenship is irrelevant), Italian law states that

(a) inheritance tax is levied on the taxable value of all assets owned by the deceased wherever located (Article 3, Legislative Decree 346/1990 or, as from 1 January 2026, Article 88, Legislative Decree 123/2025);

(b) from the inheritance tax payable in Italy are deducted the taxes paid to a foreign State, in respect of the same inheritance and in relation to assets existing in that State, up to the extent of the portion of the inheritance tax proportional to the value of such assets (Article 26, Legislative Decree 346/1990, or from 1 January 2026, Article 111, Legislative Decree 123/2025.

In practice, if an Italian resident dies while owning an asset (e.g., worth 200) located in another State, which applies a tax rate of 40% to that asset, while the Italian rate is 4%, nothing is paid in Italy because the 80 paid to the foreign State is deducted from the 8 owed to the Italian tax authorities, who evidently... thank you.

The Italy-France Convention

As far as inheritance tax is concerned, Italy has entered into a few conventions against double taxation, namely with the United States, Sweden, the United Kingdom, Denmark, Greece, Israel and France. The latter (ratified by law 708/1994) is undoubtedly the best known, in terms of frequency of use: it adds nothing to what would apply in its absence, since, both with regard to immovable property (Article 5) and shareholdings in companies (Article 8), it is stipulated that these assets are taxed in the State where they are located.

In particular, to 'locate' a company, reference is made to its 'domicile' and thus to its registered office. Finally, the convention reiterates (Article 11) that, in the state where the de cuius was resident, the tax paid in the other state in respect of property situated in the latter state is deducted.

The differences between the two countries

In Italy there are three rates of inheritance tax: in summary, 4% for inheritances in a direct line (with an exempt allowance of EUR 1 million), 6% for inheritances between siblings (with an exempt allowance of EUR 100,000) and 8% for inheritances between persons not related by blood.

In France, the applicable rates vary according to parentage and are significantly higher:

1) in a straight line, progressive rates range from 5% to 45%, after a general franchise of 100,000 euro for each heir;

2) between brothers and sisters, rates range from 35% to 45%, with a deductible of EUR 15,932;

3) between relatives up to and including the 4th degree, the rate is 55%, after application of an abatement of EUR 1,594;

4) between unrelated persons, the rate reaches 60%, after application of an abatement of EUR 1,594.

The taxable amount of units and shares

In Italy, the taxable base for shares and participation in the share capital of unlisted companies is determined by applying the percentage of capital belonging to the deceased to the value of the net book assets. For listed shares, their price on the day of death is taken as the taxable base.

In France, for unlisted participations the taxable base is the market value at the date of death, which can be determined using multiple criteria (adjusted net worth, profitability, prospects and comparables), with the possibility of taking into account the control premium or the minority discount. For listed securities, the market value at the date of death is relevant; the average price of the 30 sessions prior to death is allowed as the method of estimation.

*notary in Paris