Business · Economy · 5 hrs ago
Italy proposes 26% exit tax on some wealthy people leaving the country
Italy’s government has proposed an exit tax in its draft 2027 budget for some people who move abroad.
It would apply to people who have been Italian tax residents for at least six of the previous 10 years and hold qualifying assets worth at least €800,000.
The tax would be 26% on investment gains built up in Italy, even if the investments have not been sold.
The €800,000 threshold concerns the value of qualifying assets, not the amount of profit being taxed.
The proposal follows years of Italian tax incentives aimed at attracting wealthy expatriates and high-earning professionals, including a flat-tax scheme whose annual charge for new arrivals has risen to €300,000.
Advisers warn the new tax could make Italy less attractive to wealthy newcomers and residents considering staying.
Parliament must approve the proposal before it can take effect, with the draft setting its start date at 1 January 2027.
Italy’s 2027 budget bill proposes taxing certain unrealised financial gains when eligible taxpayers move their tax residence abroad.
The proposed tax would apply to people and other specified entities that meet conditions including holding relevant assets worth at least €800,000.
For individuals, one condition is having been tax-resident in Italy for at least six of the previous ten tax periods.
The ordinary rate would be 26%, with a reduced effective rate of 12.5% for government bonds.
Payment may be deferred in some cases, and one report says the expected annual revenue is €6.74 million.
- Who
- Individuals and certain other entities that do not conduct commercial business, subject to the bill’s conditions.
- What
- A proposed tax on unrealised gains accumulated while tax-resident in Italy. The ordinary rate is 26%.
- When
- The bill would apply to tax-residence transfers from 1 January 2027.
- Where
- Italy; it concerns people transferring their tax residence abroad.
- Why
- To tax gains accumulated in Italy before a move abroad could make them harder for Italian tax authorities to tax.
Italy’s centre-right government
Matteo Renzi
Purpose and impact
Italy’s centre-right government
The government’s stated aim is to preserve Italy’s taxing rights over gains built up while taxpayers were resident there.
Matteo Renzi
Renzi called the measure populist and said it would damage Italy’s work to attract investment.
Reports described the exit tax as a measure in Italy’s 2027 budget bill.
The proposed rules would begin applying to tax-residence transfers made from this date.
- Asset threshold
- At least €800,000 in relevant assets
- Residence test
- At least 6 of the previous 10 tax periods resident in Italy
- Ordinary tax rate
- 26%
- Government bonds
- 12.5% effective rate
- Payment deadline
- Within 180 days of the residence transfer, unless deferred
- Expected annual revenue
- €6.74 million at full implementation
4 sources
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Meloni tassa i guadagni di chi espatria. Ma tra scappatoie e rimborsi la exit tax dà solo 6,7 milioni di gettito
«Exit tax», la tassa del 26% per i super ricchi che lasciano l’Italia: come funziona e chi rischia il prelievo
What people are saying
Giorgia Meloni destroys with a populist rule a decade of work to attract investment. Absurd.