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What is the interest withholding rate between Cyprus and Italy?

Under the Cyprus-Italy tax treaty, the withholding rate on interest is 10%. Certain types of interest (such as government bonds) may qualify for additional exemptions under specific treaty articles. This 10% rate compares to a median of 0% across Cyprus's 25 active treaty partners, and 10% across Italy's 47 active partners.

Network Comparison

Cyprus

Rank 22 of 25 active treaties (lowest rate = #1)

Lower rates with: France (10%), Greece (10%), India (10%)

Higher rates with: Romania (10%), United States (10%), Canada (15%)

Italy

Rank 14 of 47 active treaties (lowest rate = #1)

Lower rates with: Canada (10%), China (10%), Colombia (10%)

Higher rates with: Denmark (10%), United Kingdom (10%), Greece (10%)

Sources

Data last reviewed: 2026-04-07

Important: Treaty rates require proper claim forms (e.g., IRS Form W-8BEN for U.S. treaties, HMRC DT-Individual for U.K. treaties, CRA Form NR301 for Canadian treaties) filed before payment. Limitation on Benefits (LOB) provisions may restrict eligibility. A 0% withholding rate does not mean no tax — the residence country may still tax the income. This is not tax advice.

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