Ireland, Italy and Portugal are not raising taxes on the wealthy in their 2027 budgets, at least so far. That sets them apart from Hungary, which is drafting a wealth tax, and Luxembourg, which wants a longer holding period for tax-free gains. Ireland has made family transfers cheaper, while Italy and Portugal, so far, keep their regimes for wealthy newcomers and returning residents. As of 15 October 2026, the Italian and Portuguese plans are still proposals.
Ireland: higher thresholds, lower CGT
Ireland presented its budget on 6 October. According to KPMG, Forvis Mazars and Grant Thornton:
- Gift and inheritance tax (CAT). For gifts and inheritances taken on or after 7 October 2026, the tax-free thresholds rise: Group A (mainly children from parents) from €400,000 to €420,000, Group B (other close relatives) from €40,000 to €44,000, and Group C (everyone else) from €20,000 to €22,000. The rate stays at 33%.
- Capital gains tax. The rate falls from 33% to 31% for disposals on or after 7 October 2026. Development land stays at 33%, Forvis Mazars notes.
- Heritage items. The yearly cap on tax-relieved donations of heritage items rises from €8 million to €12 million.
- Farm succession. The tax credit for succession farm partnerships, between a farmer and a successor, doubles from €5,000 to €10,000 for those registered from 1 January 2027.
- A new investment account. From 1 July 2027, KPMG says, it will carry a flat 1% yearly tax on value above €50,000, with contributions of up to €12,000 a year.
Italy: the frame, not the picture
On 13 October the Council of Ministers approved Italy’s draft budgetary plan for 2027, Avvenire and InformazioneFiscale report. The budget bill comes later; Avvenire says its content waits on EU talks expected in November. Measures discussed so far concern income tax brackets, wages, rents and car tax; we found none aimed at the wealthy.
The flat tax on foreign income for new residents stays as set last year: the 2026 budget law raised it from €200,000 to €300,000 a year for people moving to Italy after 31 December 2025, and to €50,000 (from €25,000) per family member, according to DWF and Fiscal Focus.
Portugal: a break for those who come back
Portugal’s draft 2027 budget went to parliament in early October. According to PwC Portugal, it extends the regime for former residents to people who become resident in 2027. Those who were not resident in any of the previous five years, but were resident before, are taxed on only half of their employment and business income for five years, with the exempt amount capped at €250,000.
What to watch
- Detailed rules for Ireland’s new investment account.
- The text of Italy’s budget bill, which may still add measures.
- Portugal’s parliamentary debate on the draft budget.
A fair caveat
“No new measures for the wealthy” in Italy is our reading of press summaries of a framework, not of a bill. The Portuguese measure rests on one source, PwC’s summary of the draft. Ireland’s changes apply from 7 October according to advisers, but still need to be written into law.
Questions to bring to your advisors
Does Ireland’s higher threshold change the timing of gifts we planned? If we are weighing a move to Italy or a return to Portugal, which regime would apply, and from when? These are questions to bring to your lawyers and tax advisors, not advice.
