Withholding tax (Quellensteuer)
A tax that the home country of a dividend withholds directly before the money reaches you.
In short
As of 8 October 2026Withholding tax is a tax that the home country of a dividend keeps back directly. The US takes 15 % with the W-8BEN form, Switzerland 35 %. In Germany, usually up to 15 % is credited against capital gains tax so you do not pay twice. Anything higher has to be reclaimed abroad yourself. Withholding tax inside ETFs cannot be credited.
When a foreign company pays a dividend, its home country often withholds a tax right away: the withholding tax (Quellensteuer). In Germany the dividend is still taxable. So you do not pay twice, part of the withholding tax is credited against German capital gains tax, usually up to 15 %.
US: normally 30 %, only 15 % with the W-8BEN form, usually handled by your broker. Switzerland: 35 %, of which 15 % is credited; the rest you reclaim in Switzerland yourself. Withholding tax incurred inside ETFs cannot be credited by you.
Example: a US stock pays you a 100 euro dividend. The US keeps 15 euros, and the German tax of 25 euros drops by those 15 euros to 10, plus solidarity surcharge. More in the chapter on taxes on stocks and the topic on using your allowance.
Related terms
Sources
As of 8 October 2026 · Educational content, not investment or tax advice.