What is withholding tax — and how do you avoid being taxed twice?
Withholding tax is the tax a country takes off a dividend before the money reaches your account. It is the company's home country that takes it — not the country where the share is traded. Your own country then taxes the dividend too, but credits the foreign tax up to the rate the two countries' tax treaty allows: usually 15 %. If the foreign country takes more, you reclaim the rest yourself.
It is the company's country, not the exchange
A German company bought on the Amsterdam exchange is still German. Withholding tax follows the company's home country. The currency and the trading venue make no difference to the tax — they only affect your exchange fee.
A worked example (Denmark)
You receive 1,000 in dividends and your Danish rate is 27 %.
A Dutch company: the Netherlands withholds 15 % = 150. Your Danish tax is 270, minus the 150 already paid, so you pay 120 in Denmark. Total 270 — exactly as for a Danish share. Nothing to reclaim.
A German company: Germany withholds 26.375 % = 264. Denmark credits only the 15 % the treaty allows — 150 — and you still pay 120 in Denmark. Total 384, until you reclaim the last 114 from Germany. That is the double taxation people talk about.
Rates in the most-used countries, for a Danish investor (2026)
| Company's country | Withheld | Denmark credits | What you do |
|---|---|---|---|
| Netherlands | 15 % | 15 % | Nothing |
| United Kingdom | 0 % | — | Nothing |
| USA | 15 % with W-8BEN (30 % without) | 15 % | Make sure your broker has a valid W-8BEN |
| Sweden | 30 % | 15 % | Reclaim 15 % if your broker does not reduce it at source |
| Norway | 25 % | 15 % | Reclaim 10 % if your broker does not reduce it at source |
| Finland | 35 % | 15 % | With an investor declaration at your broker only 15 % is taken |
| Germany | 26.375 % | 15 % | Reclaim 11.375 % from the Bundeszentralamt für Steuern |
Other countries — Switzerland, France, Spain, Belgium, Austria and more — have their own rules, and some have no treaty with Denmark. Check the country with your own tax authority before you buy, if the dividend is the reason you are buying.
The typical beginner's mistake
Assuming your broker reclaims the extra tax for you. Some do, most do not. Check the dividend note: if it says 26.375 % was withheld on a German dividend, the money is still in Germany until you ask for it.
How you see it in Kiggo
Kiggo does not calculate your tax. But under "Show key figures" Kiggo tells you whether the company pays a dividend and what percentage of the price it amounts to — so you can see how much the withholding tax is actually about before you buy.
Related terms
Frequently asked questions
Do I need to do anything about a Dutch share?
Not as a Danish investor. The Netherlands withholds 15 %, which is exactly what the treaty with Denmark allows, and Denmark credits it in full.
How do I reclaim German withholding tax?
From the Bundeszentralamt für Steuern (BZSt). You need a certificate of tax residence from your own tax authority and the dividend note from your broker. It often takes many months, so collect a whole year's dividends in one claim.
What about dividend stocks inside an ETF?
Then the withholding tax is taken inside the fund, and you cannot reclaim it yourself. It is one reason a fund returns slightly less than the index it tracks.
Kiggo explains — Kiggo does not advise. We never tell you what to buy or sell, and key figures can only be compared between companies in the same industry. The decision is yours. Last updated 2026-09-21.
Written by Claus Frisch, founder of Kiggo. Not an adviser, not a bank — Kiggo explains, you decide.
