Tax on wealthy people leaving Italia. Here’s who pays and how much
Budget Bill: introduction of an exit tax on financial assets worth over 800,000 euros
A key feature of the new Budget is the introduction of a full-fledged ‘exit tax’ (exit tax), designed to tax financial gains accumulated in Italia by those who decide to move abroad.
How it works and who it applies to
The legislation introduces Article 307-bis into the Consolidated Income Tax Law (TUIR). The measure targets individuals, unincorporated partnerships and non-commercial entities that hold financial assets of at least €800,000 (excluding bank deposits), comprising shares, equity interests and other financial instruments.
There is also a time-related prerequisite for the tax to apply: the taxpayer must have been resident for tax purposes in Italia for at least 6 of the last 10 years prior to the move.
The tax is levied at the standard rate of 26 per cent on financial income and on ‘accrued’ capital gains (i.e. the increase in value that securities have gained over time, even if they have not yet been sold). For government bonds only, a tax relief is available: the basis on which the tax is calculated is reduced to 48.08 per cent.
Payment rules and the ‘deferred’ option
As a general rule, the balance must be paid within 180 days of the change of residence. However, for those moving to a European Union country or a cooperating state, the law provides an option: to defer payment until the securities are actually sold.
