Taxes
Foreign Dividends & Taxes
Foreign dividends are often taxed twice before they reach you: once by the company's home country and again by the IRS. Most of that can be recovered or credited if you know the rules. These guides cover what is withheld, what you can claim back, and the traps that cost investors real money.
All guides in this section
Foreign dividend withholding: why your dividend arrives short
How foreign dividend withholding tax works for U.S. investors: statutory vs. treaty rates, how ADRs and brokers apply them, and why you may be over-withheld.
Dividend withholding rates by country for U.S. investors
2026 dividend withholding rates for U.S. investors in Canada, the UK, Japan, Germany, Switzerland, France, Australia, Brazil, India and the Netherlands, with treaty caps.
The foreign tax credit: getting back what other countries withheld
How U.S. portfolio investors claim the foreign tax credit: credit vs. deduction, the $300/$600 election to skip Form 1116, the limit, and carryovers.
When foreign dividends qualify for the lower tax rate
When dividends from foreign stocks and ADRs qualify for 0/15/20% rates: the treaty and U.S.-listing tests, PFIC exclusion, holding period, and 1099-DIV box 1b.
Foreign stocks in an IRA: when withholding becomes a permanent cost
Why foreign dividend withholding in an IRA usually can't be credited, why Canada and the UK are exceptions, and how to think about account placement.
Reclaiming foreign tax: getting the over-withheld amount back
How U.S. investors reclaim dividend tax withheld above the treaty rate in Switzerland, Germany, and France: forms, deadlines, costs, and when it's worth it.
PFIC rules: the tax trap inside foreign funds and junior miners
Passive Foreign Investment Company rules explained for individual investors: the tests, excess distribution tax, QEF and mark-to-market elections, Form 8621.
Reporting foreign investments: FBAR, Form 8938, and what's exempt
Do foreign stocks or ADRs at a U.S. broker trigger FBAR or Form 8938? What does, the 2026 thresholds, and where Form 8621 and Form 1116 fit in.