Italy – Romania Tax Treaty
The Italy-Romania tax treaty caps withholding on dividends at 10% for portfolio investors and 5% for qualifying direct investment, and interest at 10%. Royalty rates vary by category, from 5% on copyright to 10% on film and television. 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 30 in Romania's. The general dividend rate of 10% is below the median in both countries' treaty networks (Italy: 15%, Romania: 15%).
Verified data
ANAF International Tax Conventions (anaf.ro) (Treaty list verified April 2026. Rates from individual treaty texts (Articles 10-12).)
Withholding Rate Summary
Source: Romania Treaty Reference| Income Type | Treaty Rate | Statutory Rate (Romania) |
|---|---|---|
| Dividends (general) Portfolio investors | 10% | 8% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 5%saves 3% | 8% |
| Interest Bank interest, bonds, loans | 10%saves 6% | 16% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 6.3% | — |
| 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 (Romania)” 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 10% 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 8%.
Source: Romania Treaty Reference
Interest
Interest payments (bank interest, bonds, loans) are subject to 10% withholding under this treaty, compared to the 16% statutory rate. This represents a 6% reduction from the statutory rate.
Source: Romania Treaty Reference
Royalties
Royalty withholding rates vary by the type of intellectual property. This treaty distinguishes 4 categories, with rates ranging from 5% to 10%.
Source: Romania 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: Romania Treaty Reference
Comparative Context
🇮🇹Italy's Network
Among Italy's 47 active treaty partners, the 10% general dividend rate ranks 6th (median: 15%).
| Partner | Rate |
|---|---|
| Hong Kong | 10% |
| Hungary | 10% |
| Poland | 10% |
| Romania (this treaty) | 10% |
| Russia | 10% |
| Saudi Arabia | 10% |
| Austria | 15% |
🇷🇴Romania's Network
Among Romania's 30 active treaty partners, the 10% general dividend rate ranks 7th (median: 15%).
| Partner | Rate |
|---|---|
| Cyprus | 10% |
| Czech Republic | 10% |
| India | 10% |
| Italy (this treaty) | 10% |
| Japan | 10% |
| South Korea | 10% |
| Norway | 10% |