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When a foreign company pays you a dividend, its home country usually keeps a slice before the cash reaches your broker. That slice is the dividend withholding tax, and it varies from 0% to 35% depending on the country. This table shows the standard rate for foreign investors and the typical rate for US residents under tax treaties.
Withholding tax by country
| Country | Standard rate | US investor w/ treaty | Notes |
|---|---|---|---|
| United States | 30% | n/a | For foreign investors in US stocks; most treaties cut it to 15% (W-8BEN) |
| United Kingdom | 0% | 0% | No dividend withholding for foreign investors |
| Singapore | 0% | 0% | No dividend withholding |
| Hong Kong | 0% | 0% | No dividend withholding |
| Brazil | 0% | 0% | New 10% rule being phased in from 2026; confirm current status |
| China | 10% | 10% | Applies to H-shares/ADRs |
| Mexico | 10% | 10% | |
| Netherlands | 15% | 15% | |
| Luxembourg | 15% | 15% | |
| Japan | 15.3% | 10% | Statutory 15.315% |
| Czech Republic | 15% | 15% | 35% if no treaty documentation |
| Turkey | 15% | 15% | |
| Spain | 19% | 15% | Refund process for the difference |
| Poland | 19% | 15% | |
| South Africa | 20% | 15% | |
| Taiwan | 21% | 21% | No comprehensive US treaty |
| South Korea | 22% | 16.5% | Includes local surtax |
| Canada | 25% | 15% | 0% inside US retirement accounts (IRA/401k) under treaty |
| Ireland | 25% | 15% | Exemption forms available for US residents |
| France | 25% | 15% | Refund process for the difference |
| Norway | 25% | 15% | |
| Israel | 25% | 25% | 12.5-15% possible with treaty paperwork |
| Italy | 26% | 15% | Refund process is slow |
| Germany | 26.4% | 15% | Statutory 26.375%; refund for the difference |
| Denmark | 27% | 15% | Refund process for the difference |
| Austria | 27.5% | 15% | |
| Portugal | 28% | 15% | 35% for uncooperative jurisdictions |
| Belgium | 30% | 15% | |
| Sweden | 30% | 15% | |
| Finland | 30% | 15% | |
| Australia | 30% | 15% | 0% on fully franked dividends |
| Chile | 35% | 35% | Credit system may reduce effective rate |
| Switzerland | 35% | 15% | Refund of 20 points via Form 82; slow but reliable |
How to keep more of your foreign dividends
1. File the W-8BEN (non-US investors in US stocks)
Foreign investors holding US stocks are withheld 30% by default. A W-8BEN form on file with your broker applies your treaty rate, typically 15%, automatically. Most brokers make this a two-minute online form.
2. Prefer treaty-friendly countries in taxable accounts
UK, Singapore and Hong Kong withhold nothing. Switzerland withholds 35% and makes you file paperwork to claim 20 points back. Same yield on paper, very different net income.
3. Know the retirement-account exception
Canada does not withhold on dividends paid into recognized US retirement accounts (IRA, 401k) under the treaty. The same courtesy does not apply everywhere; Ireland and Germany, for example, still withhold inside IRAs.
4. Claim the foreign tax credit
In a taxable US account, foreign tax withheld can usually be claimed as a credit against your US tax bill (Form 1116, or directly on the 1040 for small amounts), which softens the hit. In an IRA there is nothing to credit against, which is why placement matters.
Frequently asked questions
Do ETFs avoid withholding tax?
No. A US-listed international ETF pays withholding inside the fund before you ever see the dividend. You cannot file it away with a W-8BEN, though the fund may pass through a foreign tax credit in taxable accounts.
Are these rates guaranteed?
No. Rates change and treaties get renegotiated. Treat this table as a starting point and confirm the current rate with your broker before buying.
Which countries are best for dividend investors?
Purely on withholding: UK, Singapore and Hong Kong at 0%. Factoring in refund hassle, Netherlands and Japan are friendly; Switzerland and Italy demand patience.
Educational reference, not tax advice. Rates are statutory rates for non-resident individual investors as commonly published; local surcharges, refund procedures and treaty eligibility vary by situation. We review this page periodically; spotted an error? Tell us via the contact page and we will fix it within a day.