Italy plans to impose an exit tax, with calls for amendments within the ruling coalition

(1) Italian Prime Minister Meloni plans to tax wealthy individuals who leave Italy, but an important member of her ruling coalition has warned that the proposal must be amended to avoid scaring off investors. (2) Forza Italia Senate group leader Stefania Craxi, an ally of Meloni, stated that the principle is correct—wealth created in Italy should be taxed in Italy—but after reviewing the proposal, believes that it is absolutely necessary to make modifications. (3) She added that amendments are being studied, as this tax must never be perceived as a burden that hinders investment. (4) Meloni's latest budget proposal includes an exit tax that would require individuals with financial assets exceeding 800,000 euros to pay a 26% tax on unrealized capital gains when moving their tax residence abroad. (5) It is expected that this tax will only generate several million euros per year and is one of the measures Meloni has taken to win over voters dissatisfied with rising prices ahead of next year's elections. (6) However, this could also undermine Italy's years-long efforts to attract wealthy individuals through a favorable tax regime.