Europe Dividend Tax by Country

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1

Gents, I am aware this topic has been raised in the past.
However I can’t find a list.
UK residents can have up to ÂŁ2000 for UK allowance.
Hence the questions remains: is this picture correct for all dividends from Germany, Spain, France, Nederland’s ?

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Source:

Dividend Tax Rates in Europe | European Rankings | Tax Foundation.

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2

@RLX @Enlil @Dao @Vedran @CavanHaganInvesting

Question above.

3

For Spain 23% is the marginal rate (i.e. the highest rate).

0 - 6000€ @ 19%
6000 - 50000€ @ 21%
above 50000€ @ 23%

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4

UK rates as of September 2020:

  • The tax-free dividend allowance is ÂŁ2,000.
  • Basic-rate taxpayers pay 7.5% on dividends.
  • Higher-rate taxpayers pay 32.5% on dividends.
  • Additional-rate taxpayers pay 38.1% on dividends.
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5

so if we buy via T212 and get dividends, we only get x-19% , is this correct ?

6

Spain dividend = 19% WTH
German dividend = 26.35% WTH
France dividend = 28% WTH
Holland dividend = 15% WTH

7

dividends would only be reduced if there is a withholding tax. UK has no withholding tax so the numbers are straight-forward.

for example I am not sure about Irelands 51% shown above, whether that includes the 20% withholding tax or not.

8

I wouldn’t know taxes outside of the U.K., just remember withholding tax on US dividends differs country to country.

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9

UK has many kinks in the marginal tax rate. Income just over 100k is taxed effectively at 60% due to loss of personal allowance. Similar kink when child allowance gets withdrawn. Earned income which is normally taxed at 40% but which pushes dividends over the boundary from 32.5% to 38.1% has effective tax of 40+(38.1-32.5)= 45.6%. All this must be up in the air once paying for Covid costs comes home.

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10

at least the taxation of dividends themselves are straightforward just depending on the income bracket you fall into once the dividends are counted. the rest of taxation is a minefield that is thankfully not my problem to deal with :rofl:

11

the difficult thing is that there’re so many exceptions and special cases (for example uk rate is at 0% but for uk reits there’s a different rate, in belgium there’s also a different rate for reits) and everything changes depending on where the investor is from and sometimes even on how much they earn

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13

Yes for uk residents.
So no taxes are withold on the isa.
Only usa 15%.
Is this correct?

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14

@endre thank bro for the comprehensive answer.

15

The Netherlands. Holland is just 2 provinces.

16

15% withholding tax on US dividends
0.5% stamp duty on U.K. stocks when buying (excluding AIM)
I think theres a french stamp duty too? If anyone could confirm that or you can go search

But those are what are still payable in an ISA. Just the easiest way to look at it is there’s no tax for you to manually pay, all taxes are taken automatically in the ISA. You don’t have to report anything to do with your ISA, it’s all protected.

17

Yes but only on 134 companies with a market cap over 1 billion. It’s 0.3% if I remember well. Probably the reason why nobody but french people are buying french stocks :sweat_smile:

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18

Croatia - 10% wth.

CGT also 10% (no tax if you hold shares for more than two years).

19

Portugal dividend = 28% WHT (Portugal fiscal resident)

Portugal dividend = 0%/25%/35% WHT (Portugal non-resident)

There is also transaction taxes:

  • UK - Stamp duty: 0.5%
  • France - Transaction tax: 0.3% (Stocks >1B Market Cap French Companies)

But, besides national WHT, we most see also the WHT for non-fiscal residents:

For example, Netherlands have 0% WHT for non-residents on interest payments, and Portugal has 25%/35% WHT.

When Degiro pays interest from Portuguese Bonds and I’m a Portuguese resident, I get a 35% WHT (instead of 28% national WHT), because Degiro is a foreign financial intermediary (and the assets are on a Degiro Dutch omnibus account). The same happens for Portuguese Dividends paid on Portuguese stocks to any Degiro investor.

So it matters, where are financial instruments deposited/transitioned, as we are using Trading 212, we are all under the British umbrella.

20

So the non-British people also don’t buy UK stocks and shares even more, because the stamp duty tax is higher than the French transaction tax. (And there is also a currency risk.) :wink:

I’m uncomfortable in both cases, I still didn’t invest in UK and French stocks because of that. (The British stocks also because of the currency risk.)

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21

Yes exactly :slight_smile: I don’t. I have no problem buying my ETFs on LSE but buying stocks won’t happen any time soon. I think those transaction taxes should be aimed at large operators but not retail investors like us. It’s ridiculous.

If you’re a french investor with a french broker buying french large cap stocks, You pay 0.1-0.2% to the broker then you pay 0.3% of transaction tax and then the same when you sell. So all together that’s 1% or so and then you pay taxes on your profits ! I mean come on… Are we trading to make money or what ? :grinning_face_with_smiling_eyes: :grinning_face_with_smiling_eyes:

@Tedk99 I deleted my answer to you as I realized it was completely off topic. Sometimes I’m just weird. Sorry :slight_smile:

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