Dividend withholding tax calculator
Tax is taken abroad before the money reaches you, then again at home — with a credit that is usually capped.
Withheld at source
€150.00
Landed in the account
€850.00
Still owed at home
€100.00
after €150.00 credit
Yours in the end
€750.00
25.0% total tax
The part that surprises people is the cap. Most countries credit foreign withholding only up to the treaty rate, so tax withheld above that rate is not recovered through your return at all, and getting it back means a reclaim in the country that took it.
How the layers work, and why a W-8BEN does nothing for a fund, is in how dividend withholding tax works for EU investors.
General information about how this calculation works, not financial or tax advice. See our terms.