US dividend withholding tax rates by country of residence

Rate by country of residence

Two things in this table catch people out. A treaty existing does not mean a reduced dividend rate exists — several residences hold a treaty in force and still sit at 30%. And a rate below 15% means an Irish UCITS would leak more tax on the same index, not less, reversing the advice most cross-border guides give.

How to read the rate against your own holdings

The column applies to the residence, not to the holding. A resident of one country pays the same rate on every US-domiciled fund and every US stock they own; moving to another country changes that rate on every future dividend without a single share changing hands.

Two conditions sit underneath the number. The rate is the treaty rate where the broker holds valid documentation — usually a W-8BEN, which expires; without it the statutory 30% is withheld whatever the table says. And it is the general portfolio-dividend rate: the IRS footnotes carry conditions, and each country page lists the ones attached to that residence.

Comparing the number against 15% answers the fund-domicile question for that residence, because an Irish UCITS holding US stocks suffers 15% inside the fund whoever owns it. US ETFs vs Irish UCITS works through what that costs and what it saves, and the break-even comparison puts the saved withholding against the higher expense ratio.

Common questions

What is the US withholding tax rate on dividends by country?

It is set by the income tax treaty between the United States and your country of tax residence, not by where the fund is listed or bought. The table on this page carries the rate on portfolio dividends for every country in IRS Table 1 — 15% for most treaty countries, 10% or less for a few, and the 30% statutory rate where no treaty is in force. The reduced rate applies only where the broker holds valid documentation for the investor, typically a W-8BEN.

Is this the same as the withholding tax my own country charges?

No. These are two independent steps. This table is step one: what the United States takes from a dividend before it leaves the country. Step two is what your country of residence charges on the income once it arrives, and whether a foreign tax credit offsets step one. No rate for step two is stated anywhere on these pages, because it depends on a tax position no table can see.

Does a US tax treaty always mean a reduced dividend rate?

No. Several residences hold a treaty in force and still sit at the 30% statutory rate on portfolio dividends, because the treaty reduces other categories of income rather than dividends. The treaty article column shows which provision the rate comes from where one applies.

Does the rate change if I hold an Irish-domiciled ETF instead?

It changes where the tax is taken rather than removing it. An Irish UCITS holding US stocks suffers 15% US withholding inside the fund regardless of your residence, so a residence with a treaty rate above 15% loses less through the Irish wrapper, a residence at 15% sees no difference, and a residence below 15% loses more.