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What is the interest withholding rate between Israel and Italy?

Under the Israel-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 10% across Israel's 24 active treaty partners, and 10% across Italy's 47 active partners.

Network Comparison

Israel

Rank 15 of 24 active treaties (lowest rate = #1)

Lower rates with: United Kingdom (10%), Greece (10%), India (10%)

Higher rates with: Japan (10%), South Korea (10%), Mexico (10%)

Italy

Rank 20 of 47 active treaties (lowest rate = #1)

Lower rates with: Greece (10%), Indonesia (10%), Ireland (10%)

Higher rates with: Japan (10%), South Korea (10%), Luxembourg (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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