Real estate assets derived from donations: what changes under the new rules governing the action for restitution

The action for reduction of donated property is no longer enforceable against third parties

Article 44 of Law No. 182/2025 – Simplification Measures in Support of Economic Activities – has introduced significant amendments to the legal framework governing the action for reduction (azione di riduzione) and the action for restitution (azione di restituzione). The objective is clear: to facilitate the transferability of assets derived from donations and, at the same time, to ease access to credit in this context.

What is the action for reduction and when does it apply?

Under the Italian Civil Code, where lifetime gifts (donations) or testamentary dispositions made by the de cuius exceed the disposable portion of the estate, the forced heirs (legittimari - heirs entitled by law to a reserved, non-disposable share of the estate) may act within 10 years from the opening of the succession by bringing an action for reduction. This action is aimed at restoring their statutory share of the inheritance.

What happens after the action for reduction?

Where the action for reduction is upheld:

• the beneficiary of the testamentary disposition or the donee must return the asset, in whole or in part;
• such interest may be pursued by the forced heir through a subsequent action, known as the action for restitution, in order to obtain actual recovery of the asset.

How did the system operate prior to the reform?

Prior to Law No. 182/2025, if the asset had already been transferred to a third party, the forced heir was required to:

• seek reimbursement from the donee for the value of the asset corresponding to their reserved share;
• failing such reimbursement, bring a claim also against the third-party purchaser, requesting restitution of the asset;
• the third party, however, could retain the asset by paying its monetary equivalent.

This legal uncertainty represented one of the main obstacles to transactions involving properties originating from donations.

The key change: reduction is no longer enforceable against third parties

With the new wording of Article 563 of the Italian Civil Code, the fundamental principle has changed: the action for reduction can no longer prejudice third parties who acquire the asset from the donee.

Article 563, as amended by Law No. 182/2025, provides that the reduction of a donation does not affect third parties to whom the donee has transferred the donated real estate.

The obligation of the donee to compensate the forced heirs in monetary terms, within the limits necessary to restore their reserved share, remains in place.

Distinction between purchasers for value and gratuitous transferees

The new legal framework distinguishes between two scenarios.

1. Purchaser for value (e.g., sale and purchase):

• bears no obligation toward the forced heir;
• is fully protected.

2. Gratuitous transferee (e.g., subsequent donation):

• is required to compensate the forced heir only if the original donee is insolvent;
• such liability is limited to the benefit received.

What happens if the donee is insolvent?

If the donee is wholly or partially insolvent, the gratuitous transferee (avente causa a titolo gratuito) is required to compensate the forced heirs in monetary terms, within the limits of the benefit received.

In essence, the action for reduction does not prejudice those who acquire the property from the donee - whether for value or gratuitously - with the sole distinction that:

• a purchaser for value is entirely exempt from any liability toward the forced heir whose reserved share has been infringed;
• a gratuitous transferee from the donee is required, in the event of the donee’s insolvency, to compensate the forced heir in money, within the limits of the benefit received, in order to restore the reserved share.

When is the third party not protected?

Pursuant to Article 563 of the Civil Code, protection of the third-party purchaser does not apply where the acquisition takes place after the registration (trascrizione) of the action for reduction. In such cases, the third party is deemed to be aware of the associated risk.

Registration of actions: what does it mean?

Actions for reduction and restitution concerning real estate are subject to registration in the public real estate registers. This entails:

• legal notice of the existence of the claim;
• increased transparency for prospective purchasers;
• the ability to verify potential risks prior to the transaction.

Transitional provisions: which rules apply?

The legislator has introduced transitional provisions governing the shift from the former to the new regime, establishing that the new rules protecting purchasers apply to successions opened after the entry into force of Law No. 182/2025.

The previous regime, however, continues to apply to earlier successions only if:

• an action for reduction has already been served and registered;
• or it is served and registered within 6 months from the entry into force of the law;
• or an out-of-court notice of opposition to the donation is served and registered within the same time limit.

Where these conditions are not met, the new rules also apply to successions already opened.

The legislator has thus completed the legislative process initiated in 2005 (with Decree-Law No. 35/2005, converted into Law No. 80/2005), whereby the unenforceability of the action for reduction against transferees from the donee had been deferred until 20 years from the registration of the donation, leaving unresolved - during the interim period - the need to protect purchasers and the difficulties in obtaining mortgage financing secured by property originating from donations.

Why is this reform relevant for the real estate market?

Under the new framework, legal uncertainty in real estate transactions is reduced, the transferability of properties is enhanced, and access to financing becomes more straightforward.