Home Money Blow to wealthy expats in Italy: Meloni doubles tax on foreign wealth amid pressure on public finances

Blow to wealthy expats in Italy: Meloni doubles tax on foreign wealth amid pressure on public finances

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Tax hike: Italian Prime Minister Giorgia Meloni seeks to boost revenue amid a squeeze on Italy's public finances

Tax hike: Italian Prime Minister Giorgia Meloni seeks to boost revenue amid a squeeze on Italy’s public finances

Giorgia Meloni’s government will double the tax on foreign residents.

The £86,000-a-year payment, which exempts people who move to the country from tax on foreign gains, gifts and inheritances for 15 years, will rise to £172,000.

Billionaires have flocked to the country to take advantage of the tax system, after the levy was introduced in 2017, hoping it would benefit the economy.

It allows around 4,000 people to save money from foreign income (but not from income earned in Italy) and has made Milan a hotspot for private equity executives fleeing London.

Milan has attracted major investment firms including Capstone Investment Advisors, Eisler Capital and billionaire Steve Cohen’s Point72 Asset Management. But locals have dubbed it the “billionaire tax” or “the footballers’ plan.”

Italy wants to raise funds amid a public finance crisis.

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