{"id":2503,"date":"2025-02-04T10:19:18","date_gmt":"2025-02-04T10:19:18","guid":{"rendered":"https:\/\/joseselles.com\/dividend-withholdings-in-2025\/"},"modified":"2025-09-03T10:45:46","modified_gmt":"2025-09-03T10:45:46","slug":"dividend-withholdings-in-2025","status":"publish","type":"post","link":"https:\/\/joseselles.com\/en\/dividend-withholdings-in-2025\/","title":{"rendered":"Dividend withholdings in 2025"},"content":{"rendered":"\t\t
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Dividend withholding by country in 2025\n<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"\"\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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When we talk about investing in international shares, dividends are a key part of the total return, along with the profits obtained from selling those securities.<\/span><\/span> However, it is not as straightforward as it sounds: taxes can play a significant role in calculating actual profitability.<\/span> And this is where a factor often overlooked at first comes into play: dividend withholding by countries.<\/span><\/p>

Each country has its own tax regulations and decides what portion of the dividend remains at source before it reaches the investor’s pocket.<\/span> To this must be added what is payable in Spain, where dividends are taxed as part of the savings base, with rates ranging from 19% to 28% in 2025, depending on the bracket.<\/span> Although there are international agreements to avoid double taxation, the reality is that this is not always easy to achieve in practice.<\/span> It requires paperwork, waiting times, and a good knowledge of each country.<\/span><\/p>

What do we mean when we talk about dividend retention by country in 2025?<\/span><\/h2>

In short, it is the percentage automatically deducted by the company’s country of origin before the investor sees a single euro of the dividend.<\/span> In other words, it is a withholding tax, and it is the first tax step that affects that profitability that seemed so clear on paper.<\/span><\/p>

Let’s look at an example to put it into context.<\/span> If a German company pays a dividend of \u20ac100, the German government applies a withholding tax of 26.375% (which includes a solidarity surcharge), so the investor will receive \u20ac73.62… and that is before paying taxes in Spain.<\/span> However, if the dividend comes from a British company, it arrives in full, without withholding tax at source.<\/span><\/p>

The difference is obvious.<\/span> And in a year, with several dividends in between, this can translate into a handful of percentage points more \u2014 or less \u2014 in net returns.<\/span> Hence the importance of having a clear understanding of how dividend withholding works by country in 2025.<\/span><\/p>

And what is happening in Europe?<\/span><\/h2>

In Europe, there is enormous fiscal diversity.<\/span> Even between neighbouring countries there are considerable differences.<\/span> These are some of the withholdings that will apply at source during 2025:<\/span><\/p>

  1. Spain<\/strong>: 19%.<\/li>
  2. Germany<\/strong>: 26.375% (includes a 5.5% solidarity surcharge on the prime rate of 25%)<\/li>
  3. France<\/strong>: 30%.<\/li>
  4. United Kingdom<\/strong>: 0% (no withholding tax on dividends at source)<\/li>
  5. Italy<\/strong>: 26%.<\/li>
  6. Holland (Netherlands)<\/strong>: 15%.<\/li>
  7. Denmark<\/strong>: 27% (can be up to 15% depending on tax treaties)<\/li>
  8. Norway<\/strong>: 25%.<\/li>
  9. Belgium<\/strong>: 30%.<\/li>
  10. Portugal<\/strong>: 28%.<\/li>
  11. United States<\/strong>: 30% (may be reduced to 15% with the W-8BEN form, depending on the tax treaty)<\/li><\/ol>

    <\/p>

    It is important to emphasize that these rates correspond to withholding taxes, applied by the country where the dividend distributing company is headquartered. For international investors, the correct management of withholding taxes and the application of tax treaties can make a big difference in the final returns. <\/p>

    As you can see, the range is wide: from 0% in the UK to 30% in Belgium and France.<\/span> This disparity forces investors to look beyond the dividend itself.<\/span> Dividend withholding by country in 2025 may make one market more attractive than another, depending on the tax impact on the portfolio.<\/span><\/p>

    And in America, what is the outlook?<\/span><\/h2>

    In the United States, the standard is a 30% withholding.<\/span> However, if the Spanish investor submits form W-8BEN, this can be reduced to 15% thanks to the bilateral tax agreement.<\/span> A simple procedure, but one that makes a big difference if done correctly.<\/span><\/p>

    In Latin America, the situation is also very uneven:<\/span><\/p>