She attracted the rich with low taxes: The Meloni squeeze in Italy

Italy’s government has proposed an “exit tax” on wealthy residents who leave the country, unsettling the thousands of affluent investors who relocated there under a flat-tax regime introduced in 2017. Investors fearing they would owe additional tax on departure are consulting advisers, while tax lawyers point to a key distinction over the measure’s scope. The flat tax, which lets new residents pay a fixed annual levy on foreign income instead of standard rates, has been a flagship draw for high-net-worth arrivals under Prime Minister Giorgia Meloni’s government. The debate matters because the exit charge could erode Italy’s appeal as a low-tax haven for mobile capital and complicate planning for those considering a move. What to watch next is the final scope and legal wording of the rule, and whether existing flat-tax residents are grandfathered or caught by the change.