Italy's Draft Budget Would Levy 26% Exit Tax on Unrealized Gains

Overview

• The draft budget adds an exit tax that would charge 26% on unrealized capital gains for private investors who move their tax residency abroad and hold at least €800,000 in covered financial assets.
• The measure targets shares, equity stakes, securities and similar instruments while excluding bank deposits and it applies only to people who were tax residents in Italy for six of the prior ten years.
• Under the proposal taxable gain is the market value at departure minus the asset’s tax cost, with government bonds given a reduced taxable base that results in an effective 12.5% rate.
• Payment would be due within 180 days, but movers to EU countries or to states with tax cooperation could defer by paying 50% up front and providing a guarantee, with deferral windows of up to five years in the EU and up to ten years elsewhere.
• The government projects modest revenue and the plan follows France’s existing model, while critics warn the draft leaves open key technical questions on asset valuation, crypto inclusion, liquidity and cross‑border double taxation before the final vote.