The Embassy of the Republic of Kosovo in Italy has informed citizens and the business community that the Agreement between the Republic of Kosovo and the Republic of Italy on the elimination of double taxation, the prevention of tax evasion, and tax avoidance has officially entered into force.
According to the Embassy’s announcement, under this agreement individuals and businesses will no longer be taxed twice on the same income—once in Kosovo and again in Italy.
“Taxes paid in one state will be recognized as a tax credit in the other state (in accordance with the applicable rules). The agreement establishes clear rules for salaries, self-employed professions, and businesses. Pensions will be taxed only in the state of residence. Short-term employment (up to 183 days) will be taxed exclusively in the state of residence, provided the conditions of the agreement are met. There are exemptions for students and trainees staying for study or training purposes, more favorable rates for dividends, interest, and royalties, as well as increased legal certainty for citizens and investors,” the Embassy stated.
This agreement is expected to significantly facilitate economic activity, cross-border employment, and investment between Kosovo and Italy.
