Double Tax Treaties in Italy

Would you like to know the provisions of double tax treaties signed by Italy with countries worldwide? This article presents you with the key features and various explanations on this subject, so that you can better understand how your company can be protected from a taxation point of view. Please explore the following lines and then reach out to our Italian company formation agents for more.

What is the purpose of a double taxation treaty?

To prevent paying the same taxes twice on the same income. Thus, double taxation is avoided.

Who can claim benefits through the double taxation treaties signed by Italy?

Companies and individuals with establishments/residency in Italy.

How are the double taxation treaties known in Italy?

• DTTs,
• Double taxation agreements (DTAs).

Who can benefit from the provisions of a DTT signed by Italy?

• multinational companies in Italy,
• foreign citizens living in Italy and gaining income from overseas.

How many DTTs did Italy sign?

Around 100.

What types of income are covered/protected by a DTT signed by Italy?

• Dividends,
• Interest,
• Royalties,
• Employment income,
• Business profits,
• Pensions,
• Capital gains,
• Real estate income, etc.

NOTE: Company director’s fees are also covered by the double taxation agreements signed by Italy.

What tax convention applies in Italy?

Italy's bilateral treaties, mostly based on the OECD Model Tax Convention (a model, not a binding convention).

What is the withholding tax on dividends through DTTs signed by Italy?

Ranges between 5% and 15%.

How is double taxation eliminated? What are the key methods?

• Tax exemption – the respective income is taxed only in the country where it is generated,
• Tax credits – if the taxes are paid overseas, a credit will cover the sum.

REMARKS:

• the tax coverage method will depend on the type of DTT signed by Italy and the respective country,
• a tax residency certificate will be solicited for companies or individuals claiming the benefits above and to avoid double taxation on income.

Can tax disputes be solved in Italy? What are the applicable methods?

Yes. Pre-litigation & administrative methods are available, alongside settlements via mutual consent.

What are the benefits of DTTs signed by Italy?

• reducing withholding taxes,
• protecting from double taxation of company profits,
• easing business operations outside Italy,
• various tax protections, etc.

Are there any DTTs updates in Italy?

The DTA signed with China became active in January 2026.

Our specialists in company formation in Italy can put you in contact with a team of accountants who can explain everything you need to know about the DTTs signed with countries worldwide. Please explore more by contacting our local team and enjoy our services at affordable prices.