Italy’s draft 2027 budget bill includes a provision that would extend an exit‑tax regime to certain residents who relocate abroad. The measure targets individuals who have been tax residents in Italy for at least six of the last ten years and who hold covered assets valued at €800,000 or more.
Under the proposal, the exit tax would be calculated on the unrealized gains of cryptocurrency holdings. Authorities would compare the purchase cost of each asset with its current market value at the time of departure to determine the taxable amount. The tax would become effective on 1 January 2027, pending parliamentary approval.
Potential impact on investors
If enacted, the rule could require affected individuals to either liquidate part of their crypto portfolio or obtain external financing to cover the tax liability. The proposal notes that the valuation method relies on market prices before the taxpayer leaves the country, exposing investors to market volatility.
Comparison with other jurisdictions
The Italian measure may influence relocation decisions for crypto investors. The United Arab Emirates does not levy personal capital gains tax, Portugal exempts gains realized within the first 365 days of ownership, Switzerland generally does not tax private crypto gains but applies a wealth tax, and Germany offers exemptions after a one‑year holding period.
Broader context
Other countries already tax unrealized gains on relocation. Austria, for example, imposes a 27.5% exit tax on digital currencies. The Italian proposal could prompt further discussion on whether relocation should trigger taxation on unrealized profits.
As the bill remains under consideration, the final shape of the exit‑tax rules and their practical implications for crypto holders are not yet certain.
