Politics · Italy · 1 hr ago
Italy’s exit tax revives debate over taxing wealth
Italy’s government has included an exit tax in its budget, as opposition parties debate whether to tax large fortunes.
A net wealth tax applies each year to assets minus debts, while taxes on capital gains apply to increases in value.
The exit tax targets unrealised gains when people move their tax residence abroad, so gains made in Italy do not escape tax.
It applies above a wealth threshold of €800,000, which researcher Francesca Subioli says is unusual compared with the €1 million threshold for inheritance tax.
Subioli says the debate should focus on which part of wealth to tax and why, rather than treating all wealth taxes as the same.
Research based on Scandinavian data found that higher taxes on the wealthiest can reduce their numbers, but have limited overall effects on jobs, investment and economic output.
Clear rules, few exemptions and effective checks can help limit avoidance, while a well-designed exit tax can keep gains made in Italy within reach of the tax system.
Italy’s government has introduced an exit tax in its budget, renewing debate over how wealth should be taxed.
The tax applies to unrealised gains when a taxpayer moves their tax residence abroad, according to an analysis published by Il Fatto Quotidiano.
The analysis distinguishes this tax on gains from a recurring tax on net wealth.
It says the measure has an unusual threshold of €800,000 in wealth.
The analysis argues that the debate should focus on which parts of wealth to tax and for what purpose.
- Who
- Italy’s government introduced the measure. Researcher Francesca Subioli analysed it for Il Fatto Quotidiano.
- What
- A new exit tax applies to certain unrealised gains when taxpayers move their tax residence abroad.
- When
- It was introduced in the government’s budget; the article was published on 10 November 2026.
- Where
- Italy. The tax concerns taxpayers transferring their tax residence abroad.
- Why
- To prevent gains accrued in Italy from escaping taxation when taxpayers move abroad.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- Tax threshold
- €800,000 in wealth
- Article publication
- 10 November 2026
- Outlet
- Il Fatto Quotidiano
- Author
- Francesca Subioli, researcher in public finance at Roma Tre University
- Exit tax target
- Unrealised gains when a taxpayer transfers tax residence abroad
What people are saying
The decisive question, therefore, is not whether to introduce a “wealth tax”, but which component of wealth to tax – stock, returns, capital gains or transfers between generations – and for what purpose.
Clear rules, few exemptions and effective controls are needed.