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Italy Proposes 25% Exit Tax on Wealthy Residents Leaving With at Least €800,000
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Italy's proposed 2027 budget includes a 25 percent exit tax on wealthy residents who move their tax residence abroad with at least €800,000 (about $896,450) in assets. The tax would apply to accumulated but unrealized investment gains for individuals who lived in Italy for at least six of the previous 10 years. Those moving to the European Union or certain other countries could delay payment until they sell their investments, but must pay 50 percent of the tax up front. Critics argue the proposal is poorly defined, creates uncertainty for investors, and could discourage wealthy people and businesses from moving to or remaining in Italy. The proposal is modeled partly on France's exit tax but appears more restrictive due to its up-front payment requirement.
Source report
Italy's proposed 2027 budget includes a new 25 percent exit tax on wealthy residents who move their tax residence abroad with at least €800,000 (about $896,450) in assets.
Key Provisions
- Scope: The tax would apply to investment gains that have accumulated but have not yet been realized through a sale.
- Eligibility: It would apply to individuals who have lived in Italy for at least six of the previous 10 years.
- Deferral option: People moving to the European Union or certain other countries could delay paying the tax until they actually sell their investments, but they would still have to pay 50 percent of the tax up front.
Criticism
Critics argue that the proposal is poorly defined, creates uncertainty for investors, and could discourage wealthy people and businesses from moving to or remaining in Italy.
Comparison to France
The proposal is modeled partly on France's exit tax, but Italy's version appears more restrictive because of its up-front payment requirement.
Source
Reason MagazineWestern
Part of this Story
Italy's Meloni government proposes exit tax on wealthy emigrants in 2027 budget