Israel Dividend Withholding Tax
Complete guide for international investors โ treaty rates, filing deadlines, and how to secure your rate before tax is withheld.
Last updated 2026-08-12Source: taxsummaries.pwc.com
Israel withholds 25.0% on dividends paid to non-resident investors. Filing your declaration with your payer before each payment secures your treaty rate (as low as 10%) instead of the domestic default โ avoiding up to 10.0 percentage points of overwithholding. There is nothing to recover through Israel itself afterwards: file before payment, or the higher default governs for that payment.
About Israel's Withholding Tax
Israel withholds 25% from non-resident dividends and interest (30% for a substantial shareholder holding 10% or more of any means of control โ this guide covers the retail 25% case). Israel publishes NO post-payment refund form for non-resident withholding tax โ Clearstream states plainly that none exists. Relief is obtained BEFORE payment: your treaty rate is secured through the custodian chain using Form A/114 (Claim for Reduced Rate of Withholding Tax / Exemption from Withholding Tax in Israel on Payments to a Non-Resident) plus a residence certificate that must reach the custodian by roughly 2 business days after the record date. Miss that cutoff and the full 25% is withheld for that payment. A statutory refund right does exist under Income Tax Ordinance ยง160 โ 6 years from the end of the payment's tax year โ but it is reachable only by opening an Israeli tax file and filing a full Israeli annual return, not by any non-resident-specific form. In practice, a holder who was over-withheld recovers through their own residence country's foreign tax credit for the Israeli tax paid, not through an Israeli filing.
Treaty Rate by Investor Residence Country
How much investors from each country avoid having withheld from Israel's 25.0% domestic rate by filing your declaration before payment. Click your residence country for a detailed guide.
| Your residence country | Standard WHT | Treaty rate | Avoided by filing | |
|---|---|---|---|---|
| ๐ฉ๐ชGermany | 25.0% | 10% | 15.0% | |
| ๐ช๐ธSpain | 25.0% | 10% | 15.0% | |
| ๐ฉ๐ฐDenmark | 25.0% | 10% | 15.0% | |
| ๐ฆ๐นAustria | 25.0% | 10% | 15.0% | |
| ๐ฎ๐ชIreland | 25.0% | 10% | 15.0% | |
| ๐ต๐ฑPoland | 25.0% | 10% | 15.0% | |
| ๐ฌ๐งUnited Kingdom | 25.0% | 15% | 10.0% | |
| ๐ซ๐ทFrance | 25.0% | 15% | 10.0% | |
| ๐ณ๐ฑNetherlands | 25.0% | 15% | 10.0% | |
| ๐ง๐ชBelgium | 25.0% | 15% | 10.0% | |
| ๐จ๐ญSwitzerland | 25.0% | 15% | 10.0% | |
| ๐ฎ๐นItaly | 25.0% | 15% | 10.0% | |
| ๐ซ๐ฎFinland | 25.0% | 15% | 10.0% | |
| ๐ต๐นPortugal | 25.0% | 15% | 10.0% | |
| ๐ฑ๐บLuxembourg | 25.0% | 15% | 10.0% | |
| ๐ฆ๐บAustralia | 25.0% | 15% | 10.0% | |
| ๐จ๐ฆCanada | 25.0% | 15% | 10.0% | |
| ๐ฏ๐ตJapan | 25.0% | 15% | 10.0% | |
| ๐บ๐ธUnited States | 25.0% | 25% | None | |
| ๐ณ๐ดNorway | 25.0% | 25% | None | |
| ๐ธ๐ชSweden | 25.0% | No relief | None | |
| ๐ธ๐ฌSingapore | 25.0% | No relief | None |
* Treaty rates shown are standard DTT dividend rates. Lower rates may apply to substantial shareholdings. Consult your tax advisor for your specific situation.
How to secure your Israel treaty rate before payment
- 1
Confirm your treaty rate
Check the treaty between Israel and your country of residence โ your rate is typically 10-15%, well below Israel's 25.0% domestic default.
- 2
Get a certificate of tax residence
Request a certificate of tax residence from your home country's tax authority, covering the period of the upcoming payment.
- 3
Complete your declaration
Fill in your declaration with your investor details and treaty rate.
- 4
File it before payment
Submit your declaration to your broker or payer before tax is deducted โ separately for each income stream, at least once per financial year.
Frequently asked questions
How much Israel dividend withholding tax can I avoid by filing your declaration?
Israel withholds 25.0%. Investors resident in tax-treaty countries can secure a reduced rate as low as 10% by filing your declaration before payment โ avoiding up to 10.0 percentage points of withholding. Your exact treaty rate depends on your country of residence.
What happens if I don't file your declaration before payment?
Tax is withheld at Israel's higher domestic default rate. Recovering the excess afterward is a separate process, outside what your declaration itself does โ filing on time avoids that step entirely.
When do I need to file your declaration?
Before each dividend or interest payment, separately for each income stream, at least once per financial year. your declaration does not carry forward automatically to the next payment.
Do I need a certificate of tax residence?
Yes. A certificate of tax residence for the relevant filing period is what lets your payer apply your treaty rate when you file your declaration.
Sources for this page
- Treaty rate โ Bilateral tax treatytaxsummaries.pwc.comas of 2026-08-13
- Filing deadline โ gov.ilwww.gov.ilas of 2026-08-13
Ready to secure your Israel treaty rate?
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