The pain of being a dividend Investor in Austria or Germany

As a dividend Investor you have to consider a lot of things about the stock itself, is it fairly price or how are the fundamentals of the company etc.. But there other things which need to be considered like brokerage fees or last but not least the real pain the withholding tax.

As some of you might know the withholding tax rate in Austria and Germany are already quite high and do make the dividend investing strategy not so attractive anymore. Currently the rate in Austria is at 25% without any tax free amount. In Germany it is 26.375 % but with a tax free amount of 801 EURO.

But now in Austria it gets even worse. The government decided to raise the withholding tax only for dividends to the rate of 27.5% at the same time the rate for interest income remains at 25%. This doesn’t look logic to me and I really don’t see the reason behind it. If I might think out loud, they just prevent people of buying shares and investing money to have more income when there are older. As the pension from government would be enough haha J.


I have done some research what the situation is in your countries. But I haven’t been sure about the real situation in other countries. So before I am posting wrong information I would ask you directly.



What is the situation in your country? Would love to get some feedback!

1 Comment

  1. You raise a good point. In the US, basically you can invest either through a tax advantaged and/or taxable accounts. I do all my foreign investing in my taxable account. Withholding and the applicable rate is based on whether a tax treaty is in effect. Currently Canada holds 15% while the UK holds 0%. Australia is 0% unless the franking rate is not sufficient. But if paid, it offsets any US tax owed, in effect tax neutral. Countries without a treaty are a whole different story.

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