Dividends on US stocks bought in the EU

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1

I was wondering. If I buy a US stock on Xetra letā€™s say, do I get dividends just like I would with the ā€˜original versionā€™ bought on the US stock market ?
Example: letā€™s say you buy BlackRock or whatever on Xetra, do you get dividends like you would if you had bought the stock on the NYSE ?
Thx :+1:

2

Yes, you do receive dividends. You can check the amounts. They can usually be found on the companyā€™s own website under an investor information tab.

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3

Thanks @Richard.W :+1:
There is something that I donā€™t quiet understand under those circumstances. Who is collecting taxes then ? Is it the german gov even though the company isnā€™t german or do I get the dividends in full and then pay all the taxes directly in my country (namely France) ? Itā€™s a weird configuration really. Any thoughts on that ?

4

I am sorry. I cannot be much help. I have some shares UL, which is ULVR trading on the NYSE, and despite that the dividends of that are paid without any tax deduction since the UK does not charge withholding tax on UK company dividends. I also have MDT (Medtronic) which trades in the US, but has Irish domicile. It arrives with 25% withholding tax deducted, despite the tax agreement UK-Ireland only allowing 15% for tax credit against UK taxes. If I could be bothered I could possibly reclaim 10% from the Irish government.

5

@Enlil , not being a tax lawyer, when the companies or their agent bank pay their dividends to any bank/broker (and then to their customers), they withhold their local tax rate, independently of country of origin of the investors or the stock exchange used to list the stocks.

EDIT: The companies/agent banks withhold their local tax rate subjected to any taxation treaty (e.g. W-8BEN).

6

Ireland have a withholding tax rate of 25% on dividends. That why your Irish-based stock, although listed on US is taxed at 25%.

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7

No worries. You already helped me a lot. Iā€™ll figure everything out eventually by getting a piece of information here, a piece of information there.

Ok, so regardless where I buy my US stocks, Iā€™ll pay US tax on it. Too bad I guess :grinning_face_with_smiling_eyes: Well at least Iā€™d be able to save on exchange fees by in Europe rather than in the US. Ok thanks for the info !