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Italy's 2027 Budget Proposes 25% Exit Tax on Wealthy Residents Moving Abroad
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Italy's proposed 2027 budget includes a new 25 percent exit tax on wealthy residents who relocate their tax residence abroad with at least €800,000 (about $896,450) in assets. The tax would apply to accumulated but unrealized investment gains, provided the individual lived in Italy for at least six of the previous 10 years. Those moving to the European Union or certain other countries could defer payment until they sell their investments but would still owe 50 percent of the tax upfront. Critics argue the proposal is poorly defined, creates investor uncertainty, and could discourage wealthy individuals and businesses from moving to or staying in Italy. The measure is modeled partly on France's exit tax but appears more restrictive due to its upfront payment requirement.
Source report
Publication date: November 3, 2026
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: The tax 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