Communist Meloni Wants Your Money Too

Giorgia Meloni’s government has proposed a new “exit tax” that targets wealthy residents leaving Italy. The measure, included in the draft 2027 budget bill sent to parliament in late October 2026, would tax unrealized capital gains on financial assets when people move their tax residence abroad.

What the proposal says

Starting with transfers effective from January 1, 2027, the tax would apply to individuals, simple partnerships, and non-commercial entities that:

• Hold financial assets (shares, equity interests, securities, crypto-assets, and similar instruments — bank deposits excluded) worth at least €800,000, and
• Were Italian tax residents for at least six of the previous ten years.

The rate is the ordinary 26% on accrued but unrealized gains (the difference between market value at the end of the tax period before departure and the tax cost basis). Government bonds get preferential treatment, with the taxable base reduced so the effective rate is 12.5%. The tax is triggered only if Italy loses taxing rights over the income under applicable treaties.

Payment is due within 180 days of the change of residence. Those moving to another EU country or a cooperating jurisdiction can defer the balance: pay 50% upfront, provide a guarantee, and settle the rest only if the assets are sold within five years (EU) or ten years (cooperating non-EU). If the assets are never sold in that window, the taxpayer dies and the assets pass by inheritance, or the person returns permanently to Italy, the tax is not due and any advance is refunded.

Expected revenue is modest: roughly €3.37 million in 2027 and about €6.74 million a year once fully operational, according to government technical estimates. That is a rounding error in the Italian budget.

Context and reaction

Italy previously had no general exit tax on private individuals’ financial portfolios (only on business assets under Article 166 TUIR). The country had courted wealthy foreigners with a special flat-tax regime on foreign income. Meloni’s governments raised that annual flat tax from €100,000 to €200,000 and then to €300,000 for newer arrivals. The exit tax is presented as targeting the “super-rich” who leave after benefiting from Italian residency.

Wealth advisers and private-client lawyers have warned it could blunt Italy’s appeal as a destination for mobile high-net-worth individuals. After years of marketing lifestyle plus relatively favorable tax rules, the combination of higher flat taxes and a new exit charge on paper gains sends a different signal. Some long-term residents and recent arrivals are already reassessing their plans.

The bill still faces parliamentary scrutiny and possible amendments before year-end. As written, however, Meloni’s center-right coalition is proposing to treat unrealized investment gains as taxable events simply because someone decides to leave — a classic feature of more interventionist tax systems. For a government that often positions itself against left-wing economic orthodoxy, the optics are awkward: when capital tries to walk out the door, even this administration wants a cut.

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