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Withholding tax in Italy 2026
Italian income leaving the country is taxed at source: 26% final on dividends and most interest, 30% on professional and directors' fees, and an effective 22.5% on royalties.
Government-bond interest drops to 12.5%, and residents of information-sharing countries escape withholding entirely on bank deposits and many traded bonds.
At a glance
- top rate
- 30% (professional fees; royalties on the full amount in some cases)
- entry band
- 12.5% on Italian government bond interest
- tax year basis
- Taken when the payment is made
- filing deadline
- Event-based; final for most investment income
- residency basis
- Italian-source income of non-residents
- regime flag
- Tax treaties and EU rules can cut or cancel the rates
Rates
Withholding on payments to non-resident individuals (2026)
| Rate | Base | Applies to |
|---|---|---|
| 26% | Gross | Dividends — up to 11/26 refundable if your home country also taxed them |
| 26% | Gross | Interest on corporate bonds and most securities |
| 12.5% | Gross | Interest on Italian government bonds and bonds of information-sharing states |
| 0% | — | Bank and post-office deposit interest; qualifying traded bonds held by residents of information-sharing countries |
| 22.5% effective | 30% on 75% of the payment | Royalties paid to the author or inventor (30% on the full amount if the right was acquired free by someone else) |
| 30% | Gross | Professional fees and directors' fees — final |
Thresholds & allowances
- Treaty reliefLower rates under Italy's tax treaty network
Typically 5%–15% on dividends, interest and royalties depending on the treaty
Residency
Residency trigger
These rates hit people who are not Italian tax residents, on income arising in Italy; salaries for work done in Italy are taxed through payroll at the normal progressive rates instead.
Non-resident treatment
The bond and capital-gains exemptions require living in a country on Italy's information-exchange white list, which spans 100+ jurisdictions from Albania to Vietnam.
Notes
- Capital gains of white-list residents on non-substantial listed shareholdings and traded bonds are exempt rather than withheld — see the capital gains page.
- Pensions and severance paid from Italy to a non-resident are taxable in Italy unless a treaty says otherwise.
- An EU-wide fast-refund system for excess withholding (digital residence certificates plus quick-relief procedures) must be transposed by end-2028 and applies from 2030; Italy has not yet enacted it.
- A non-resident earning 75%+ of worldwide income from Italy, and resident in an information-sharing country, can opt into resident-style taxation with credits.
FAQ
What withholding does Italy take on dividends paid abroad?
26% as a final tax — reducible under treaties, and with up to 11/26 of it refundable if you prove the dividend was also taxed where you live.
Do non-residents pay Italian tax on interest?
Often not: bank deposit interest is exempt, and traded bonds are exempt for residents of Italy's 100+ information-sharing countries. Otherwise 26%, or 12.5% on government bonds.
Figures: tax year 2026, compiled from public sources. Not tax advice.