Key facts
| Recipient of the Italian dividend | Withholding |
|---|---|
| Non-resident - general rate | 26% |
| EU/EEA company subject to corporate tax | 1.2% |
| EU parent, ≥10% held for a year (PSD) | 0% |
| Resident individual | 26% final |
| Resident company | 95% exempt → ≈1.2% effective |
Why 1.2% exactly
The number is not a concession - it is equal treatment. An Italian company receiving dividends from another Italian company includes only 5% of them in taxable income; at the 24% IRES rate that is an effective 1.2%. After EU case law on the free movement of capital, Italy extended the same effective burden to corporate shareholders in the EU and EEA: charging a foreign company 26% where a domestic one pays 1.2% was not defensible.[1][2]
When it matters
Related companies with a 10% stake held for a year already get 0% under the Parent–Subsidiary Directive. The 1.2% rate matters everywhere the directive does not reach: portfolio stakes below 10%, holdings younger than a year, and EEA recipients outside the EU (Norway, Iceland, Liechtenstein). An EU holding or investment company collecting dividends from minority positions in Italian businesses keeps 98.8% at the border instead of 74%.[1][3]
The catch
The recipient must genuinely be subject to corporate tax in its home state - exempt vehicles do not qualify - and must be the beneficial owner of the dividend, not a conduit inserted for the rate. Individuals get nothing here: a foreign individual pays 26% (or the treaty rate), and an Italian resident pays a 26% final tax. The 1.2% is a corporate-shareholder feature, not a general exit route from Italian dividend taxation.[1]
Συχνές ερωτήσεις
Does the 1.2% rate require a minimum shareholding?
No - that is its point. The Parent–Subsidiary 0% needs ≥10% held for a year; the 1.2% applies to any EU/EEA company subject to corporate tax, including sub-10% portfolio stakes.
Do individuals ever get the 1.2%?
No. It mirrors the 95% exemption available to corporate shareholders. Individuals - resident or not - face the 26% flat rate, reduced only by treaties.
Is there an equivalent for interest and royalties?
Not at 1.2%. Interest to non-residents is withheld at 26% and most royalties at an effective ≈22.5%, with 0% between associated EU companies under the Interest & Royalties Directive.
Τα διασυνοριακά αποτελέσματα εξαρτώνται από τη φορολογική κατοικία, τους κανόνες για τις ελεγχόμενες αλλοδαπές εταιρείες και την πραγματική οικονομική υπόσταση - μια δομή στα χαρτιά δεν αρκεί. Δείτε την αποποίηση ευθύνης παρακάτω.
Πηγές
Παραπομπές με αρίθμηση που αναφέρονται σε όλο αυτό το άρθρο. Οι νόμοι συνδέονται με κωδικοποιημένα κείμενα στο επίσημο μητρώο.