In-depth guide · Tax

Reclaiming withholding taxes: a guide for family wealth

Updated: 14 November 2026 · Leutrim Miftaraj, FLIORE · Editorial standards · Other languages: Deutsch · Français · Español

Short answer

Many states withhold tax on dividends and certain interest – Switzerland 35 per cent withholding tax, Germany 26.375 per cent capital gains tax including the solidarity surcharge, Austria 27.5 per cent on dividends. Anyone not resident in the source state can usually reclaim the portion above the double taxation treaty rate. Without systematic records, such claims lapse when the deadlines expire.

Why reclaims are often left undone

Withholding taxes are deducted automatically; reclaims must be actively applied for – for every country, every person or structure and often for every year. Banks do not always handle this, and not for every country. In family wealth with portfolios at several banks and securities from many countries, unclaimed amounts add up over the years to considerable sums that are lost for good once the deadlines have passed.

The main rates in German-speaking Europe

Withholding taxes on dividends (principles, for orientation only; the statute and treaty apply)
Source state	Rate	Residents	Non-residents
Switzerland	35 % withholding tax (Verrechnungssteuer)	Full refund if properly declared	Reclaim down to the treaty rate, often to 15 %
Germany	25 % capital gains tax plus 5.5 % solidarity surcharge = 26.375 %	Credit or flat-rate final tax	Refund down to the treaty rate at the Federal Central Tax Office
Austria	27.5 % capital gains tax on dividends	Final taxation or assessment	Refund down to the treaty rate by the tax administration
USA	30 % without a treaty	–	Usually reduced to 15 % with Form W-8BEN or W-8BEN-E

Worked calculation

A person resident in Germany receives a dividend of CHF 10,000 from a Swiss share. Switzerland withholds CHF 3,500 in withholding tax. Under the Switzerland–Germany double taxation treaty, Switzerland generally keeps 15 per cent, that is CHF 1,500. CHF 2,000 can therefore be reclaimed. The remaining CHF 1,500 is credited against tax in Germany under German rules.

In Switzerland, the right to a refund of withholding tax lapses if the application is not filed within three years after the end of the calendar year in which the payment fell due. Other countries have their own deadlines, which vary by type of reclaim and by country.

Prerequisites for a successful reclaim

A certificate of residence from the tax authority of the state of residence or seat.
The bank's tax certificate or dividend statement showing gross amount, withholding tax and net amount.
Beneficial ownership: the applicant must have economic control over the income; arrangements around the dividend record date are closely scrutinised.
Clarity on whether a structure is itself entitled to apply or is treated as transparent – for example partnerships or certain trusts.
Compliance with formal requirements and deadlines in each country.

Worked example (simplified)

A single family office looks after five family members in Switzerland and Germany as well as a holding company. An analysis shows that the bank in Zurich automatically reclaims foreign withholding taxes for the Swiss residents for only three countries, and the bank in Frankfurt for none. Over three years, reclaims for French, Dutch and American dividends were therefore never filed. The family office keeps a list per person, country and year, files the applications that are still within the deadline and agrees with both banks which countries they will handle in future.

Process in the family office

Record all income subject to withholding tax per person or structure, country and year.
Determine the applicable treaty rate and the reclaimable amount for each country.
Clarify which bank handles which reclaims and which must be filed by the family office itself.
Obtain certificates of residence in good time.
File applications, keep deadlines in the calendar, reconcile receipts.
Provide the non-reclaimable residual rates for the tax return in the state of residence.

The USA and other countries

Besides the countries in German-speaking Europe, the USA, France, the Netherlands, the United Kingdom and the Nordic countries are usually relevant for family wealth. Without a treaty, the USA levies 30 per cent on dividends; with a valid Form W-8BEN or W-8BEN-E, the treaty rate – usually 15 per cent – is applied directly at source, so a later reclaim is not needed. The United Kingdom generally levies no withholding tax on dividends.

Other countries either apply the treaty rate at source if the bank passes on the necessary certificates, or require a later reclaim with their own forms and deadlines. For planning, an overview per country is worthwhile: relief at source possible, later reclaim needed, deadline, documents required, competent authority. It also shows where the effort is not worthwhile because the amounts are small.

In FLIORE

FLIORE keeps income and accounts per person and structure in their original currency, stores tax certificates and certificates of residence in the document vault and records application deadlines in the compliance calendar. Open reclaims thus remain visible until they are settled.

At a glance

Switzerland	35 % withholding tax; right to a refund lapses after three years
Germany	26.375 % capital gains tax including solidarity surcharge
Austria	27.5 % capital gains tax on dividends
Reclaimable	The difference between withholding tax and the treaty rate

Terms on this page

Single family office: An organisation that manages exclusively the wealth and affairs of a single family.

Frequently asked questions

How much Swiss withholding tax does a person resident in Germany get back?

Under the Switzerland–Germany treaty, Switzerland generally keeps 15 per cent on dividends. Of the 35 per cent, 20 percentage points can therefore be reclaimed.

Does the bank handle the reclaim?

Some banks offer the service for selected countries, often for a fee. Which countries are covered should be clarified in writing.

What is a certificate of residence?

A confirmation by the tax authority of the state of residence or seat that the person or structure is tax-resident there. Many countries require it for every reclaim or anew each year.

Can a family foundation reclaim withholding taxes?

That depends on its tax treatment in its state of seat and on the treaty concerned. Tax-exempt or transparent structures sometimes have their own rules.

How long can one reclaim?

For Swiss withholding tax, three years after the end of the year in which the payment fell due. Other countries have their own deadlines; they should be kept in the calendar per country.

Is it worth reclaiming small amounts?

That is a question of cost. With systematic records across several years and persons, smaller amounts also become economical, because certificates and processes are bundled.

Must Form W-8BEN be renewed regularly?

Yes. Forms W-8BEN and W-8BEN-E generally remain valid until the end of the third calendar year after signature, unless circumstances change earlier. The bank usually requests a new form in good time.

Sources

This page provides orientation and does not replace legal or tax advice. The cited legal sources in their applicable version are authoritative.

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