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Withholding tax in Germany 2026
German dividends reach non-residents net of 26.375% — usually reclaimable down to 15% under treaties — while ordinary bank interest flows out with no withholding at all, and royalties carry 15.825%.
At a glance
- top rate
- 26.375% (dividends, before treaty relief)
- entry band
- 0% on ordinary bank interest to non-residents
- tax year basis
- Taken when the payment is made
- filing deadline
- Event-based; withholding is usually final for non-residents
- residency basis
- German income of non-residents
- regime flag
- Treaty refunds typically bring dividends to 15%
Rates
Withholding on non-residents (2026)
| Rate | Base | Applies to |
|---|---|---|
| 26.375% | Gross dividend | German company dividends — final, reduced by treaty (commonly to 15%) via refund |
| 0% | — | Ordinary bank interest paid to non-residents |
| 26.375% | Gross | Interest on convertible/profit-sharing bonds and mortgage-secured loans |
| 15.825% | Gross | Royalties for rights registered or exploited in Germany (mainly related-party cases) |
| 15.825% | Gross (or 30% of net for European recipients) | Performances by non-resident artists and athletes |
| Payroll rates | German workdays | Salaries — withholding usually final for non-residents |
Thresholds & allowances
- Small performance fees0% below €250 per appearance
Artist/athlete withholding waived on small payments
Residency
Residency trigger
These rules cover people outside German residence, on income arising in Germany.
Non-resident treatment
Treaty relief is claimed by refund or advance exemption certificate; rental income from German property is taxed by assessment rather than withholding.
Notes
- The absence of withholding on regular bank interest makes German deposits administratively clean for foreign savers.
- A common European framework for faster dividend-withholding refunds arrives from 2030; Germany has not yet implemented it.
- Non-resident landlords file German returns on rental income — no flat withholding applies.
FAQ
What does Germany withhold on dividends to foreign investors?
26.375% at source, with treaty residents typically reclaiming down to 15% — the refund paperwork, not the rate, is the real cost.
Is German bank interest taxed for non-residents?
Ordinary bank and deposit interest paid to non-residents carries 0% German withholding; only special instruments like profit-sharing bonds are caught.
Figures: tax year 2026, compiled from public sources. Not tax advice.