How ADRs are taxed for EU investors?

Hello Community,

I am trying to solve the puzzle of ADRs, reason avoid tax stamps or similar duties, keep USD as primary investment currency.

Anyway, I been googling for hours without answer.

How are ADRs taxed as EU investor.
Do we pay Witholding tax of US plus Witholding Tax of local government/country in which company resides?

For instance BTI, UK takes 0% Witholding tax, should we expect full dividend or 15/30% Witholding by US?


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Didn’t search, silly me.

However even reading here I cannot find clear answer.

@Richard.W did you find answer? Personally still unclear on the topic.

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I remain unclear on this. Will continue research and report back if I find an answer.


So. I have position in BTI, got 30% WTH.

Raised query with support.

They ignored my query completely.
Community support is the only communication channel that can get you proper information.

I think a 30% US withholding tax on ADR dividends may be standard. It may differ depending on where the recipient resides. I forget which is your country of tax residence.

I have some UL (Unilever) ADR and receive the dividend with no deduction of tax.

That leads to questions if one purchase Sanofi, which is listed on NYSE, does one get applied both US Witholding and French Witholding, in my case 30+28=58%.

Croatia has no trade agreement with US thus 30%.

Intersting, se we have 2 separate cases on 2 ends.

You had 0% Witholding on ADR, while I had Witholding Tax on ADR.

In reality if ADR should be taxed by US , you would have 15% deduction right? Due to UK & US deal.

I thought withholding was influenced by the country of origin so for example, Norway has 25% withholding and then the (unsponsored) ADR provider could add another fee with the dividend so net you’d be losing around 30% of the dividend.

That was my impression as well. But L1 support in T212, has no tax/financial expertise on the topic. They just closed my ticket without any factual evidence that my BTI share deserves US Witholding tax when company is originating from UK.

I found something once about the taxes for Germany, not sure if every country define their own values.
I’m really scared about my tax declaration next year. :money_with_wings:

My UL dividend was paid on a different platform (Interactive Investor). I think I had 0% withholding because Unilever is British and the UK does not charge withholding tax on dividends. But BTI is also British, so it is a puzzle. Could it be anything to do with your country of residence and the tax treaty it has with the UK?

I have BATS, 0% dividend Witholding. I was testing BTI, to avoid stamp duty tax.

Croatia is in EU, has standard tax agreement with UK.

Not the first time I had wrong taxing. For instance Canadian stocks. As croatia has treaty for 15%, was witheld 30%, got fixed after complaint.