Italy and Kosovo’s income tax treaty, effective 1 January 2026, aims to prevent double taxation and curb tax evasion, covering personal, corporate, and regional taxes.
The income tax treaty between Italy and Kosovo, signed on 22 June 2021, entered into force on 21 December 2025 and applies from 1 January 2026.
This agreement aims to eliminate double taxation on income and prevent tax evasion and avoidance between the two countries. It covers personal and corporate income taxes in both countries, as well as Italy’s regional tax on productive activities.
As for withholding tax rates, dividends are taxed at 0% if the recipient holds at least 25% of the payer’s capital for 365 days; otherwise, 5%. Interest is 0% if the same ownership condition is met or if paid by/received by a government or central bank; otherwise, 10%. Royalties are taxed at 5%.
Earlier, Italy ratified its income tax treaty with Kosovo under Law No. 154 on 16 October 2025.
