A long-standing problem in the Italian property market
For many years, properties received through donation were considered risky assets in Italy. Buyers were often discouraged, banks refused to grant mortgages, and notaries warned about potential legal disputes. The issue stemmed from the possibility that a dissatisfied heir could later challenge the donation and demand the return of the property—even from a third-party buyer acting in good faith.
With the approval of the 2025 Simplification Law, this scenario has changed significantly. The reform aims to make property transactions smoother and more secure, shifting the legal risk away from buyers and placing it within the family of the original donor.
The protection of close relatives: forced heirs
Italian inheritance law strongly protects certain family members, known as forced heirs. These include the spouse, civil partner, children, and—if there are no children—the parents.
They are entitled to a legitimate share of the estate, which cannot be excluded either through a will or through donations made during the deceased’s lifetime. In other words, a person cannot freely dispose of all their assets if doing so would harm these protected heirs.
This principle is at the root of the historical risks associated with donated properties.
Why donated properties were risky in the past
Before the 2025 reform, if a forced heir discovered that their legitimate share had been violated, they could take legal action not only against the person who received the donation (the donee), but also against anyone who later purchased that property.
This mechanism, known as the action for restitution, allowed the heir to reclaim the property itself or demand compensation from the buyer. Even a completely unaware purchaser could lose the house or be forced to pay significant sums.
Because of this uncertainty, donated properties were often considered difficult to sell, and financial institutions were reluctant to finance their purchase.
What has changed with the 2025 reform
The new law radically changes this framework by protecting third-party buyers.
Today, if a forced heir claims that their share has been violated, they can still act against the donee. However, if the donee no longer has sufficient assets, the heir can no longer pursue the buyer who purchased the property.
This means that the risk of insolvency now remains within the family and does not affect the market. The buyer who acquires a donated property in good faith is effectively protected and can retain ownership without fear of restitution claims.
The same principle also applies to other assets, such as company shares.
There is only one exception: if the donated asset is transferred again free of charge (for example, through another donation), the recipient may still be required to compensate the injured heirs—but only within the limits of the benefit received.
A practical example
Consider a father who donates a house to his son, who later sells it to a third party. After the father’s death, another child claims that their legitimate share has been violated.
Under the old system, that heir could demand the return of the house from the buyer. Today, this is no longer possible. The heir can only claim compensation from the son who received the donation. If the son has no assets, the heir bears the loss, while the buyer keeps the property.
How to verify if a property comes from a donation
Although the new law makes these purchases much safer, it remains essential to understand the origin of the property you intend to buy.
Many people rely solely on a land registry extract, but this document only shows the current ownership and tax-related information. It often does not indicate how the property was acquired.
To obtain a complete picture, you need a mortgage registry extract (visura ipotecaria). This document provides a chronological record of all transactions affecting the property, including sales, inheritances, donations, mortgages, and foreclosures.
You can request it through the website of the Italian Revenue Agency or through private service providers. The search can be carried out either by property details or by the owner’s tax code.
How to read the property history
Once you obtain the mortgage extract, you will find a list of recorded “formalities.” Among these, the most relevant are the transcriptions, which indicate transfers of ownership.
By reviewing these entries, you can identify whether the property was transferred through a donation. Look for descriptions such as “donation” or “donation with reserved usufruct,” along with the names of the donor and the recipient.
Why the last twenty years matter
A key rule in property due diligence is to reconstruct the history of ownership over at least the past twenty years. This period has traditionally been relevant for legal claims related to donations and for issues such as adverse possession.
Even though the 2025 reform significantly reduces risks for buyers, identifying a donation in the property’s history can still provide useful context. It may reveal family dynamics that, while no longer legally threatening, could still lead to disputes or complications.
Final considerations
The 2025 reform marks a turning point for the Italian real estate market. Buying a donated property is now substantially safer, as the law protects good-faith purchasers and confines disputes to the original parties involved.
That said, due diligence remains essential. Understanding the origin of the property, reviewing its legal history, and assessing any potential risks are still crucial steps in making an informed and secure investment.
VGS Family Lawyers is a law firm that offers assistance to English-speaking clients with interests in Italy. In case you need assistance, please write to: info@vgslawyers.com