Last updated 2026-06-27

Dividend Withholding Tax

Dividend withholding tax is a tax withheld on dividend payments made by a company to non-resident shareholders. The company's home country retains a percentage before paying the shareholder. Typical rates are 15–35%. Most countries with tax treaties allow foreign investors to reclaim the excess above the treaty rate.

Dividend withholding tax is distinct from corporate income tax. It is levied on the dividend payment itself, not on the company's profits. Examples: Switzerland 35%, Belgium 30%, Germany 26.375%, Denmark 27%, Norway 25%. Investors resident in treaty countries can reclaim the difference between the standard rate and the applicable treaty rate — typically 15%.