Italy proposes 26% exit tax on rich residents who leave the country

The proposal

The Meloni government included a 26% exit tax in its draft 2027 budget, submitted to parliament over the weekend. It would apply to people with assets of €800,000 or more who move their tax residence out of Italy, and to people who were tax residents in Italy for six of the ten years before leaving. The tax would be levied on paper profits on assets such as shares and stakes in companies, even if they have not been sold.

The measure would apply to residence transfers made from 1 January 2027. Taxpayers would have 180 days to settle the tax, but those moving to another EU member state or to countries with tax cooperation agreements with Italy could postpone payment until the assets are sold, provided they pay half the amount due in advance and provide adequate security.

Concerns from wealth advisers

Private wealth lawyers warn the move could reduce Italy's appeal to the world's super-rich and to other professionals. Charlie Sosna, head of private wealth and tax at Mishcon de Reya, said the measure would make many clients who relocated to Italy very nervous.

“It's a really significant move, and one that is going to have a lot of clients who have relocated there, or based there generally, very nervous.”

Italy's finance ministry did not respond to a request for comment. Maurizio Fresca, a senior tax lawyer at Chiomenti in Rome, said several aspects of the proposal remain undefined, including its relationship with the flat tax regime and other tax incentives.

Background on the flat tax

Since 2017 Italy has tried to attract wealthy newcomers with a flat tax letting new residents pay one annual levy on foreign income for up to 15 years. The fee started at €100,000 a year and the government under Meloni has twice raised it, and it now stands at €300,000 for new beneficiaries. Italy also offers tax breaks for working professionals, including Italians returning from abroad.

The Italian government expects the exit tax to raise about €3.7 million in 2027, rising to roughly €6.7 million a year in the four years after. Wealthy expatriates who moved to Italy in 2025 are not covered, because the measure targets only those resident for six of the previous ten years.

Wider context

Several European countries, including Germany, France and Spain, already levy exit taxes on rich individuals, and so does the United States. Spain's version applies to people with more than €4 million in assets, while Italy's threshold uses gross assets without deducting borrowings or mortgages. The proposal still has to pass parliament, where it could be amended.

20273.7

2028-2031 (per year)6.7

2027

3.7 million euros

2028-2031 (per year)

6.7 million euros

Data from the article text