You should be careful with these three countries

Munich Those who receive dividends from abroad sometimes experience a nasty surprise: often less money ends up in the account than hoped for. This is due to the withholding tax that German investors pay abroad on capital gains if they are taxed in the respective country.

This can result in income being taxed twice. Because the German tax authorities also want their share of the money earned abroad. “In the vast majority of cases, investors can have overpaid taxes refunded,” says Katharina Busch, tax advisor at the major law firm Ecovis.

Because Germany has double taxation agreements with many countries. Investors who collect dividends abroad then only have to pay as much tax on them as if the payments were from a domestic company. In some countries, however, it is difficult to get the withholding tax refunded. The Handelsblatt explains which options investors have, which forms they need to know and when the dividend shares are no longer worthwhile.