# Italy Proposes Exit Tax on Wealthy Residents Amid Coalition Friction New budget bill targets unrealized capital gains for individuals moving tax residence abroad. - **Source:** [La Repubblica](https://www.repubblica.it) - **Published:** 2026-11-09 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/35897bcf-7780-4491-a01c-b2bac3e12c15 ## New Exit Tax Proposal The Italian government has introduced Article 17 in its latest budget bill, targeting wealthy individuals who transfer their tax residence abroad. The measure imposes a 26% tax on unrealized capital gains for those holding investment portfolios worth at least €800,000, provided they were residents for six of the preceding ten years. ## Deferral and Payment Mechanisms Taxpayers moving to EU nations or countries with tax cooperation agreements may defer payments until assets are sold. However, this requires an immediate 50% advance payment and a financial guarantee. If assets remain unsold after five or ten years, the tax is waived, and any advance payments must be fully refunded. ## Fiscal Impact Estimates Technical assessments project modest revenue, starting at €3.37 million in 2027 and rising to €6.74 million annually through 2031. These figures account for the 180-day payment deadline and the high probability of refunds. The government expects revenue to decline after 2032 as the initial five-year deferral periods for EU relocations expire. ## Coalition Internal Dissent The proposal has triggered significant friction within Prime Minister Meloni’s governing coalition. Senator Stefania Craxi of Forza Italia is actively pushing for amendments, arguing that the current structure may violate EU rules. She insists that only gains accrued within Italy should be taxed to maintain the state's credibility with international investors. ## Threat to Investment Incentives Critics argue this tax undermines a decade of efforts to attract foreign wealth. Italy previously implemented favorable regimes, including a flat annual tax for new residents that recently increased to €300,000. Former Prime Minister Matteo Renzi labeled the new measure as populist madness that threatens to undo years of strategic economic policy. ## Regulatory and Legal Concerns Legal experts and coalition members warn that the 50% advance payment requirement may not withstand scrutiny by the European Court of Justice. Critics suggest the law should align with EU standards by allowing complete deferrals without mandatory guarantees, ensuring the policy remains consistent with broader European tax cooperation and legal frameworks. ## Asset Valuation Disputes A core point of contention involves the calculation of taxable gains. Critics propose that the asset value at the time of an individual's arrival in Italy should serve as the baseline, mirroring existing corporate tax rules. This approach would prevent the taxation of value growth that occurred entirely outside of Italian jurisdiction. ## Symbolic Economic Significance While the projected revenue of under €7 million is negligible compared to a €26 billion budget, the policy carries heavy symbolic weight. It signals a potential shift in Italy’s approach to global capital, moving from an aggressive attraction strategy toward a more restrictive stance on high-net-worth individuals leaving the country. ## Sources covering this story - https://www.repubblica.it/en/europe/news/2026/11/09/news/italy_exit_tax_wealthy_residents_moving_abroad-425704739/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._