When the U.S. pays you dividends, interest or royalties, it withholds at source. The base rate is 30% — but if your country has a tax treaty with the U.S., it can drop to 15%, 10%, 5% or even 0%. Pick your country and see the difference.
Country of tax residence + income type + amount. To claim the treaty rate you need a valid W-8BEN on file with whoever pays you.
Withholding rates on passive U.S.-source income for 19 countries, per IRS Tax Treaty Table 1 (rev. May 2023) and the U.S.–Chile treaty (in force 2024). "Direct" dividends = ≥10% ownership.
| Country | Treaty? | Dividends | Div. ≥10% | Interest | Royalties |
|---|---|---|---|---|---|
| Mexico | Yes | 10% | 5% | 15% | 10% |
| Spain | Yes | 15% | 5% | 0% | 0% |
| Chile | Yes | 15% | 5% | 15% | 10% |
| Venezuela | Yes | 15% | 5% | 10% | 10% |
| Canada | Yes | 15% | 5% | 0% | 0% |
| United Kingdom | Yes | 15% | 5% | 0% | 0% |
| Ireland | Yes | 15% | 5% | 0% | 0% |
| Germany | Yes | 15% | 5% | 0% | 0% |
| France | Yes | 15% | 5% | 0% | 0% |
| Netherlands | Yes | 15% | 5% | 0% | 0% |
| Switzerland | Yes | 15% | 5% | 0% | 0% |
| Italy | Yes | 15% | 5% | 10% | 8% |
| Portugal | Yes | 15% | 5% | 10% | 10% |
| Australia | Yes | 15% | 5% | 10% | 5% |
| Japan | Yes | 10% | 5% | 10% | 0% |
| South Africa | Yes | 15% | 5% | 0% | 0% |
| India | Yes | 25% | 15% | 15% | 15% |
| Israel | Yes | 25% | 12.5% | 17.5% | 15% |
| Philippines | Yes | 25% | 20% | 15% | 15% |
| Argentina, Colombia, Peru, Uruguay, Ecuador, Bolivia, Paraguay, Brazil, Panama, Costa Rica, Guatemala, Honduras, El Salvador, Nicaragua, Dominican Republic | No | 30% | 30% | 30% ⁵ | 30% |
The exceptions within each treaty don't fit in a table: Mexico charges 4.9% on interest from banks and bonds listed on recognized markets; Venezuela 4.95% if the beneficiary is a financial institution; Chile 15% on interest until 2029 and 10% after (4% for banks), with 2% on industrial equipment royalties; Canada goes from 0% to 10% on film, TV and equipment royalties; Italy charges 8% in general but 0% on copyright. When you select your country above we show you the applicable note. The U.S. has treaties with about 70 countries — if yours isn't in this table, check Table 1 of IRS Publication 515 before assuming a 30% withholding.
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