Italy – Netherlands Tax Treaty
The Italy-Netherlands tax treaty caps withholding on dividends at 15% for portfolio investors and 5% for qualifying direct investment, and interest at 10%. Royalties are taxed at a uniform 5% across all categories. Private pensions are taxable only in the country of residence, with no withholding at source. This is one of 47 active treaties in Italy's network and one of 49 in Netherlands's. The general dividend rate of 15% compares to a median of 15% across Italy's network and 15% across Netherlands's.
Verified data
Agenzia delle Entrate (agenziaentrate.gov.it) - Double Taxation Conventions and treaty texts (Treaty list verified April 2026. Rates from individual treaty texts (Articles 10-12).)
Withholding Rate Summary
Source: Italy Treaty Reference| Income Type | Treaty Rate | Statutory Rate (Italy) |
|---|---|---|
| Dividends (general) Portfolio investors | 15%saves 11% | 26% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 5%saves 21% | 26% |
| Interest Bank interest, bonds, loans | 10%saves 16% | 26% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 5% | — |
| Pensions Private pension distributions | 0% | — |
| Social Security Government social security benefits | 0% | — |
“Treaty Rate” is the maximum withholding permitted under this treaty. The actual effective rate may be lower if domestic law provides a more favorable rate independently. “Statutory Rate (Italy)” shows the rate that applies when no treaty benefit is claimed. Qualified dividend rate requires: Beneficial owner is a company holding >= 10% of voting stock.
Dividends
The general dividend rate of 15% applies to portfolio investors. A reduced rate of 5% is available when beneficial owner is a company holding >= 10% of voting stock. Without the treaty, the statutory withholding rate on dividends is 26%.
Source: Italy Treaty Reference
Interest
Interest payments (bank interest, bonds, loans) are subject to 10% withholding under this treaty, compared to the 26% statutory rate. This represents a 16% reduction from the statutory rate.
Source: Italy Treaty Reference
Royalties
Royalty withholding rates vary by the type of intellectual property. This treaty distinguishes 4 categories, with rates ranging from 5% to 5%.
Source: Italy Treaty Reference
Pensions & Social Security
Private pension distributions are taxable only in the country of residence, with no withholding at source. Government social security benefits are exempt from source-country withholding.
Source: Italy Treaty Reference
Comparative Context
🇮🇹Italy's Network
Among Italy's 47 active treaty partners, the 15% general dividend rate ranks 34th (median: 15%).
| Partner | Rate |
|---|---|
| South Korea | 15% |
| Luxembourg | 15% |
| Mexico | 15% |
| Netherlands (this treaty) | 15% |
| Norway | 15% |
| New Zealand | 15% |
| Philippines | 15% |
🇳🇱Netherlands's Network
Among Netherlands's 49 active treaty partners, the 15% general dividend rate ranks 33th (median: 15%).
| Partner | Rate |
|---|---|
| Indonesia | 15% |
| Ireland | 15% |
| Israel | 15% |
| Italy (this treaty) | 15% |
| South Korea | 15% |
| Luxembourg | 15% |
| Mexico | 15% |