Worldwide tax system. Gift and inheritance taxes are progressive and based on the relationship between donor and recipient, with rates from 5% to 60% and exemptions ranging from €1,594 (unrelated individuals) to €100,000 (parent to child). Residents are also subject to the real estate wealth tax (IFI) if their net real estate assets exceed €1.3 million (taxed at rates from 0.5% to 1.5%). All foreign-source income is fully taxable under the progressive income tax system (up to 45%) and may incur 17.2% in social charges unless treaty exemptions apply