Spain – Italy Tax Treaty
The Spain-Italy tax treaty caps withholding on dividends at 15%, and interest at 12%. Royalties are taxed at a uniform 8% across all categories. Private pensions are taxable only in the country of residence, with no withholding at source. This is one of 40 active treaties in Spain's network and one of 47 in Italy's. The general dividend rate of 15% compares to a median of 15% across Spain's network and 15% across Italy'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 | 15%saves 11% | 26% |
| Interest Bank interest, bonds, loans | 12%saves 14% | 26% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 8% | — |
| 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 15% 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 12% withholding under this treaty, compared to the 26% statutory rate. This represents a 14% 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 8% to 8%.
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
🇪🇸Spain's Network
Among Spain's 40 active treaty partners, the 15% general dividend rate ranks 24th (median: 15%).
| Partner | Rate |
|---|---|
| Indonesia | 15% |
| Ireland | 15% |
| India | 15% |
| Italy (this treaty) | 15% |
| Japan | 15% |
| South Korea | 15% |
| Luxembourg | 15% |
🇮🇹Italy's Network
Among Italy's 47 active treaty partners, the 15% general dividend rate ranks 21th (median: 15%).
| Partner | Rate |
|---|---|
| Germany | 15% |
| Denmark | 15% |
| Egypt | 15% |
| Spain (this treaty) | 15% |
| Finland | 15% |
| France | 15% |
| United Kingdom | 15% |