Hungarian Heirs to an Italian Estate – Which Law Applies?

With the increase in European mobility, it is becoming increasingly common for a probate matter to involve multiple countries. It is not uncommon, for example, for a Hungarian citizen to own real estate in Italy, or for a Hungarian heir to inherit assets located in Italy. In such cases, the question quickly arises: which country's law governs the succession?

The answer is often not self-evident, and whether Hungarian or Italian law applies to the case can have significant implications for the succession proceedings.

The Role of the European Succession Regulation

In the European Union, a significant portion of succession matters is governed by the European Succession Regulation, which has been in effect since 2015. The purpose of the regulation was to ensure more uniform and predictable rules in succession matters between EU member states.

As a general rule, the law of the state where the deceased had their habitual residence at the time of death applies to the succession.

However, this can raise several questions in practice. For example, what happens if the decedent was a Hungarian citizen but spent a significant portion of his or her life in Italy? Or if the decedent was a resident of Hungary but also owned real estate in Italy?

When Italian law applies

If the decedent's habitual residence was in Italy, then the rules of Italian inheritance law generally govern the succession.

This may differ in several respects from what a Hungarian heir is accustomed to. For example, Italian law places great emphasis on protecting heirs entitled to a so-called "statutory share," thereby reserving a specific portion of the estate for certain family members—such as a spouse or child.

Such rules can have a significant impact on the final distribution of real estate or other assets among the heirs.

Can Hungarian law be chosen?

Few people know that the European Succession Regulation allows the testator to specify in advance which law should apply.

For example, a Hungarian citizen may stipulate in their will that Hungarian law should apply to the succession, even if they habitually reside in Italy.

This decision may be particularly important if the testator owns assets in multiple countries and wishes to avoid future disputes over legal interpretation or parallel probate proceedings.

Inheriting Italian Real Estate as a Hungarian Heir

Special attention should be given to cases where a Hungarian heir inherits real estate in Italy. In such situations, the following are often required:

• probate proceedings before Italian authorities,

• transfer of ownership of the property in the Italian registry,

• as well as the resolution of any inheritance and tax issues.

The process often consists of several steps, and it is not uncommon for both Hungarian and Italian legal considerations to be taken into account.

Why is legal planning important?

One of the biggest challenges in international inheritance matters is that legal issues often only become apparent once the proceedings have already begun.

Yet in many cases, even a preliminary legal review can help the testator or family members gain a clearer understanding of:

• which country's law will apply,

• how the order of succession might unfold,

• and what steps are necessary to facilitate subsequent proceedings.

In cross-border inheritance matters, the greatest benefit often lies in clarifying legal issues before any dispute or proceedings arise.