When someone gives a gift, they often want to keep a connection to the thing they're giving away. In Italian law, this is done by donating the bare ownership of an asset while reserving the usufruct - and it's especially useful when it comes to shares in a company, because it lets the person giving the gift keep control over how the company is run.

The way gift tax is calculated is important here, because it only applies to the value of the bare ownership actually transferred. The calculation is based on the age of the person reserving the usufruct, and it's designed to be fair and take into account how long the usufruct will last. This approach is useful because it lets people plan for the future and think about how they want their assets to be passed down to their family.

When the person who gave the gift passes away, the usufruct simply ends and full ownership consolidates automatically in the hands of the recipient - and this doesn't trigger any extra taxes under Italian law.

This way of giving gifts is a good strategy for managing wealth, because it lets the person giving the gift enjoy the asset while they're still alive, while also making sure that their family is taken care of in the long run. It's a way of balancing the present and the future, and it requires a good understanding of the law and how it applies to taxes and gifts.

At Move To Dolce Vita, we help people navigate the complexities of Italian law and taxes, so they can make the most of their wealth and create a lasting legacy for their family. We take a personalized approach to wealth management, and we're committed to helping our clients achieve their goals. Whether you're an individual, a family, or a business, we can help you make the most of your assets and plan for the future.

Let us be your guide to managing your wealth in Italy. We'll help you understand the law and make informed decisions about your assets, so you can enjoy them now and pass them down to your family in the future. With our expertise and guidance, you can create a lasting legacy and make the most of your wealth.

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