Italy wants a 26% exit tax on wealthy residents who move abroad

Leaving Italy could soon come with a tax bill, even if you have not sold a thing.

The government’s budget bill for 2027 to 2029, now before Parliament, includes a 26% exit tax on unrealized gains for people who move their tax residence out of the country. It is a proposal, not law, and the details could change before the budget is passed.

Who it would hit

The tax is aimed at a narrow group. According to Repubblica and Corriere della Sera, it would only apply if all of these are true:

• You were an Italian tax resident for at least six of the last ten years
• You hold at least €800,000 in company shareholdings and other financial assets covered by the rule
• You move your tax residence abroad from Jan 1, 2027

Corriere reports that bank deposits do not count toward the €800,000.

The tax would be charged on the gain in value of those assets, as if you had sold them on the day you left. Italian government bonds would get a lower effective rate of 12.5%.

Video: "Conferenza Stampa del Consiglio dei Ministri n. 195", Palazzo Chigi on YouTube.

How you would pay

The bill gives 180 days to pay. People moving within the EU, or to countries that share tax information with Italy, could instead pay half up front and defer the rest by posting a guarantee. The rest would be due when the assets are sold, within at most five tax years for EU moves and ten for other approved countries, according to Corriere.

Small money, big signal

The tax is not expected to raise much. Bloomberg Tax reports it would bring in less than €4 million in its first year, and Repubblica puts the figure at €3.3 million. Bloomberg Tax called it a symbolic move by Prime Minister Giorgia Meloni’s government.

Italy has spent recent years as one of the places wealthy movers choose, while several European countries compete for them. Charging people on the way out points the other way. It would not make Italy unusual: France has an exit tax, so do Germany and Spain, each with its own rules.

Between now and Dec 31

By Dec 31 Parliament has to pass the budget, and lawmakers can keep the exit tax, rewrite it or cut it before then. Only the version that passes will apply.

Jan 1, 2027 is the date to watch. The draft covers moves from that day, so anyone weighing a move should talk to a tax adviser in Italy first, since the rules and thresholds could look different by late December.

Editorial only, not tax or financial advice.

Top photo: Alexkom000 via Wikimedia Commons, CC BY 4.0.