The Italian government led by Giorgia Meloni has proposed a 26% tax on unrealised gains from assets for wealthy people who decide to leave the country, according to the budget bill submitted to parliament.
Who the new tax will apply to
Under the draft, the 26% tax would apply to individuals with assets of at least €800,000. The rule would apply to those who were considered tax residents of Italy for six of the last ten years prior to departure.
Financial advisers warn that such a move risks deterring wealthy expatriates who have been attracted to Italy’s financial centres. The initiative is at an early stage of the legislative process.
Projected revenues and timing
The budget draft estimates that in 2027 receipts from the tax will amount to €3.7 million. Over the following four years they will rise to just over €6.7 million, and from 2032 they will fall to €3.4 million per year due to repayments to those who retain their assets.
The legislative proposal is still under consideration in parliament; lawyers hope that during hearings MPs will introduce amendments and clarify whether the tax will apply to all worldwide assets or only those located in Italy.
Earlier tax breaks and international comparisons
Previously, wealthy foreigners in Italy could benefit from a “fixed tax” on foreign assets: initially €100,000 per year, later raised by the government to €300,000. The new restrictions could make such breaks less attractive.
For comparison, in the United States a similar exit tax applies to individuals with net worth above $2 million. A proposal in California for a one-off 5% wealth tax on billionaires has also been noted.
