Swiss Withholding Tax on Dividends
On dividends from Nestlé, Roche, Novartis or UBS, Switzerland withholds a hefty 35% withholding tax — far more than the usual 15%. The good news: you credit 15% in your country of residence, and you can reclaim the remaining 20% from Switzerland. The bad news: it does not happen automatically. Anyone who forgets to file the claim gives away 20% of their dividend.
35% — the highest withholding rate you regularly encounter
Swiss companies are popular with dividend investors: Nestlé, Roche, Novartis, Zurich Insurance or UBS are among the most reliable dividend payers in Europe. But Switzerland levies a withholding tax of 35% on distributed dividends — a security tax deducted directly at source. For Swiss residents it serves as a prepayment they get back. For you as a foreign investor it is at first a hefty deduction, but you can reclaim most of it.
How the 35% splits up
The double-taxation agreement between Switzerland and your country of residence caps the final withholding tax at 15%. The 35% withheld therefore breaks down into two parts: the first 15% is the treaty-conforming final burden — it is credited against your capital-gains tax at home. The remaining 20% Switzerland only withheld as a security; on this amount you, as a foreign investor, have a refund claim against the Swiss Federal Tax Administration (ESTV).
CHF 100 Swiss dividend — the path of the tax
| Component | Rate | What happens to it |
|---|---|---|
| Total withholding tax | 35 % | withheld immediately |
| Treaty rate | 15 % | final, creditable at home |
| Excess | 20 % | reclaimable from Switzerland |
How to reclaim the 20%
The refund runs through the Swiss Federal Tax Administration (ESTV). As a private individual resident abroad, you use the ESTV refund form designated for your country (application for refund of Swiss withholding tax). You need a confirmation from the tax authority of your country of residence regarding your residency, plus the dividend statements from your broker as proof. Today you can largely submit the application electronically via the ESTV portal.
Income statement or dividend statements from your broker showing the 35% withholding tax.
The tax authority of your country of residence confirms on the application that you are tax-resident there.
File the application (electronically or by post) with the ESTV — within three years of the end of the year the dividend was due.
The ESTV refunds the 20% to your account. Processing takes a few months depending on the backlog.
Many brokers automatically credit only the 15% — reclaiming the remaining 20% stays your job. Anyone who does not file the claim loses a fifth on every Swiss dividend. For small amounts the effort is often not worth it; from a few hundred euros of dividend per year it clearly is. The deadline is three years — you can bundle several years together.
Tax treatment by country
Germany: 15% is credited against the flat-rate capital-gains tax (Abgeltungsteuer, 25% + solidarity surcharge); you reclaim the 20% from the ESTV using Form 85. Austria: With the capital-gains tax (KESt, 27.5%), 15% is likewise creditable; the refund of the 20% follows analogously through the ESTV with a residency confirmation from the Austrian tax office. Spain: The 15% treaty rate is accounted for via the deducción por doble imposición; the excess is reclaimed from the ESTV. Italy: For private investors the foreign withholding tax is usually not creditable; all the more important is reclaiming the portion above 15% directly from Switzerland.
FAQ — Swiss withholding tax
How high is the Swiss withholding tax on dividends?
Switzerland withholds 35% withholding tax on dividends. However, the double-taxation agreement caps the final burden for foreign investors at 15%. The remaining 20% you can have refunded by the Swiss Federal Tax Administration.
How do I reclaim the Swiss withholding tax?
As a private individual resident abroad, you file the application using the ESTV refund form designated for your country with the Swiss Federal Tax Administration (ESTV). You need a residency confirmation from the tax authority of your country of residence and the dividend statements from your broker. The deadline is three years after the end of the year the dividend was due.
Does my broker do the refund automatically?
Usually not. Brokers generally credit only the treaty-conforming 15% against the capital-gains tax automatically. Reclaiming the remaining 20% from Switzerland is something you have to apply for yourself. Some banks offer a paid service for this.
Is reclaiming the 20% always worthwhile?
For very small dividends the bureaucratic effort is often out of proportion. From a few hundred euros of Swiss dividend per year it is clearly worth it. Since the deadline is three years, you can collect several years and reclaim them in one bundle.
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