Italy Proposes Controversial Exit Tax on Wealthy Expatriates Moving Abroad
Italy introduces a 26% exit tax on unrealized investment gains for wealthy residents. See how the Meloni budget proposal impacts international expats.
POLICY WIRE — Rome, Italy — The Italian government has unveiled a controversial new measure designed to capture financial gains from wealthy individuals who relocate their tax residency outside of the country.
Contained within Article 17 of the draft 2027 budget, which was submitted to the Chamber of Deputies on October 30, 2026, the proposal seeks to tax unrealized gains on financial assets accumulated while living in Italy.
Under the plan, the tax targets individuals with at least €800,000 in assets who have resided in Italy for at least six years before moving abroad.
The legislation would introduce Article 307-bis into the Consolidated Income Tax Law (TUIR), establishing a 26 percent tax rate on paper profits for these residents.
While Rome projects that the exit tax will generate €3.7 million in revenue, the move has sparked significant concern among the wealthy community and legal experts.
Legal advisors have expressed fears that the policy could diminish the country’s appeal to high-net-worth individuals.
There are also lingering questions regarding how this new tax will interact with Italy’s existing incentive regimes and flat-tax structures.
This shift comes after a period where Giorgia Meloni’s administration raised the flat tax rate twice in the last two years following public criticism over the influx of ultra-rich residents into Milan.
Reporting by Policy-Wire (PW)
