Italian honey trap: The country that lured Europe's rich now presents an 'exit tax'

The Italian government has proposed an exit tax on millionaires who immigrated to the country, as part of next year's budget proposal. The tax, at a rate of 26% on unrealized gains, will apply to those with assets over €800,000 who leave Italy. Last year, about 3,600 millionaires immigrated to Italy.

The Italian government, led by Giorgia Meloni, has proposed a new tax regulation as part of next year's budget proposal, imposing an exit tax on millionaires who immigrated to the country in recent years. According to the proposal, anyone wishing to leave Italy will pay a 26% tax on the unrealized gains of their businesses, if they have assets worth more than €800,000. Italy has become a leading immigration destination for Europe's wealthy thanks to a tempting offer: a flat tax of €100,000-300,000 per year on all income from outside the country for 15 years. Last year, about 3,600 millionaires immigrated to Italy, according to data from the consulting firm Henley. The law will take effect on January 1, 2027, and will apply only to those who were tax residents in Italy for six out of the last ten years, which should exempt new immigrants. The new tax is expected to generate €3.4 billion in 2027 and €6.7 billion in the years 2028-2031. A European tax expert told the IMI website that this is a step in the wrong direction that undermines the trust of millionaires.