Monaco’s reputation as an attractive destination for wealthy international residents could receive a further boost as Italy considers introducing a controversial exit tax, potentially penalising affluent individuals who decide to leave the country…
According to the Financial Times, Giorgia Meloni’s government has proposed a 26 percent tax on unrealised capital gains for departing residents holding assets worth at least €800,000. The measure, included in Italy’s draft 2027 budget, would generally affect individuals who have been Italian tax residents for six of the preceding ten years.
Italy has spent much of the past decade attracting wealthy newcomers through preferential tax arrangements, including a flat-tax scheme for foreign income. However, successive increases in the annual charge, now €300,000 for newer arrivals, have already raised concerns among international wealth advisers.
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Monaco offers a striking contrast. The Principality generally levies no personal income tax or capital gains tax on residents, with no comparable general exit tax for individuals choosing to relocate. French nationals remain subject to specific tax arrangements.
While Italy’s proposal still requires parliamentary approval and clarification, the uncertainty could strengthen Monaco’s competitive position among internationally mobile families seeking long-term financial stability and predictable taxation.
Image: Rishi Jhajharia
