Italy working on changes to 'exit tax', economy minister tells industry lobby groups

Italy Considers Amendments to Proposed Exit Tax on Wealthy Individuals

Overview of Italy's Proposed Exit Tax and Financial Sector Response

Background and Initial Proposal

ROME, Nov 13 (Reuters) - Italy is working on changes to its proposed exit tax on ‌wealthy individuals leaving the country, Economy Minister Giancarlo Giorgetti told industry lobby groups on Friday, after the proposal sparked criticism from tax experts and financial advisers.

Details of the Exit Tax

• The 2027 budget announced last month by Prime Minister Giorgia Meloni envisages a 26% levy on unrealised capital gains of individuals holding financial investments worth at least €800,000 ($885,000) who ​transfer their tax domicile abroad.

Amendments and Industry Feedback

• People attending a meeting in Rome with business associations on next year's budget said the minister announced that there were amendments to the scheme but he gave no further details.

Reactions from Wealth Advisers and Advocates

Concerns from Wealth Advisers

• Wealth advisers ⁠said the exit tax could hurt Italy's appeal to their clients, reversing efforts by Meloni's predecessors to lure affluent ​individuals through generous tax incentives.

Arguments from Wealth Tax Advocates

• Advocates of wealth taxes point to growing inequality, with top earners becoming richer while real wages stagnate for ⁠low- ​and middle-income workers.

Impact on the Financial Sector

Additional Tax Measures

• Italy also triggered widespread criticism from the financial sector over €5.9 billion in higher taxes affecting it in 2027.

Response from Major Banks

Intesa Sanpaolo's Criticism

• Italy's biggest bank, Intesa Sanpaolo, strongly ‌criticised these measures on Thursday, saying they could prompt the ECB to ask domestic lenders to lower their exposure to sovereign debt.

Additional Information

• ($1 = 0.9042 euros)

(Reporting by Giuseppe Fonte; Editing by Hugh Lawson)