Double Taxation On Foreign Dividend And Interest Income
Investors resident in Finland typically pay withholding tax on dividend and interest income in the country where the income originates. The same income may also be taxed in Finland, resulting in double taxation. Tax treaties that Finland has concluded with many countries aim to reduce this problem.
The source country often withholds more tax than the relevant tax treaty between Finland and that country allows. In that case, the investor can apply directly to that country for a refund of the excess tax. The refund process varies by country, but usually requires the investor to complete several forms, attach supporting documents, and provide certificates issued by the Finnish Tax Administration when needed.
If the payer knows the investor’s country of residence, it can withhold tax directly at the treaty rate. In that case, no separate refund application is needed because the tax is correctly withheld from the outset under the terms of the treaty.
This article shares our experiences of reclaiming foreign taxes that were withheld abroad.
Certificates Of Residence For Tax Reclaims
To apply for a tax refund, the taxpayer must prove that they were resident in Finland. For this reason, before submitting our own applications, we requested certificates of residence from OmaVero for all the tax years for which we planned to seek refunds. We ordered the certificates electronically for each country and separately requested paper versions.
In our experience, ordering certificates of residence from OmaVero was mostly straightforward. The main challenge was that the Tax Administration asked for unnecessary additional information on the application form, even though it was not needed on the certificate itself. For example, they asked us to report foreign investment income, even though we were only applying for a certificate of residence. The certificates arrived quickly – electronically within a few days, and the postal delivery was also prompt.
Getting the certificates of residence turned out to be the easiest part of the process — the real challenges only began once we started dealing with foreign tax authorities.
Statements For Foreign Dividend And Interest Income
We also needed calculations and statements for our foreign investment income. Nordea had not sent these by post, but we found year-end summaries in online banking that itemised the dividends and the tax withheld on them. We printed both on paper and as PDF files. Unfortunately, the documents did not include an official signature.
The drawback of the documents provided by Nordea was that the dividends and withholding tax were shown only in euros, even though the dividends had often been paid originally in other currencies. Because foreign tax authorities require amounts in the local currency, we had to recalculate all euro-denominated dividends into the original currencies.
We could not simply convert the euro amounts back to the original currencies with basic multiplication, because we did not know which exchange rates had been used initially. The situation was eased somewhat by the fact that the account statement’s transaction details showed the per-share dividend in the local currency, which allowed us to calculate the total amounts.
The calculations and form-filling became more complicated because some companies paid dividends several times during the same year. This required careful breakdowns of each payment and the conversion of those amounts into local currencies. As evidence, we only had Nordea’s summaries, which listed all amounts in euros. We still do not know whether all foreign tax authorities will accept these euro-based attachments as they are.
Using Multi-Currency Accounts For Tax Refunds
We quickly realised that refunds would be paid in each country’s own currency. Fortunately, we had access to the Wise service, which allowed us to open accounts in different currencies and get local account numbers for them. This made it easy to receive, for example, Swiss francs and Swedish krona.
We recommend Wise, because it lets you receive refunds in the local currency and convert them into euros at competitive exchange rates.
Wise was also handy for travel.
Curve Pay enabled low-cost payments abroad.
Foreign Withholding Tax Refunds – Country-By-Country Experiences And Forms
Switzerland – Form 88
Switzerland withholds 35% tax on dividends, which is clearly higher than in many other countries. Under the tax treaty between Finland and Switzerland, however, Switzerland is only entitled to withhold up to 15% on dividends, so the excess 20% can be reclaimed from the Swiss tax authorities.
In Finland, dividends are generally taxed as investment income, but the tax paid in Switzerland can be credited to avoid double taxation. In practice, this means that, once the application is completed correctly and the required documents are submitted, it is possible to reclaim 20% of the dividend amount on Swiss dividends.
We applied for a refund of Swiss withholding tax using form 88 (Claim for Refund), which we downloaded from the website of the Swiss Federal Tax Administration. The form could be completed electronically, but because of its unusual format, we needed the free Snapform program.
We followed the instructions on the form, and filling it in was fairly straightforward. When printing, the form generated several slightly different copies, and the first three versions required signatures from the Finnish Tax Administration. We first mailed these forms to the Finnish Tax Administration for signature, then sent two signed copies to the Swiss tax authorities in Bern. We attached the certificates of residence for the relevant tax year,s as well as the dividend and withholding tax summaries printed from Nordea’s online banking.
The decision on the tax refund arrived within a few weeks, and the money reached our account shortly afterwards. We used Wise multi-currency accounts to receive the francs.
UPDATE 2026: We also submitted a second application to Switzerland, and it was processed very quickly.
Germany – BOP And ELSTER
Germany’s taxation of investment income differs somewhat from the Finnish system, but the tax treaty between the two countries is designed to prevent double taxation. Germany usually withholds 25% tax on dividends. Under the treaty, however, Germany may tax dividend income received by a Finnish resident at a maximum rate of 15% so that the excess part can be reclaimed from the German tax authorities.
To apply for a refund, we first registered with the BOP portal (Bescheinigungsportal), which is the German tax authority’s electronic system. As part of the registration, we received a confirmation letter from Germany by post to verify our address.
Only after the letter arrived could we continue the registration process and create a user account for Germany’s ELSTER portal, the broader electronic tax system. Creating an ELSTER ID required receiving a second confirmation code that was sent by post.
After several weeks and two letters from Germany, we finally obtained a working ELSTER ID, which allowed us to submit our application for a refund of the withholding tax.
Although the ELSTER system worked, it was not as user-friendly as Finland’s OmaVero. The application form requested a great deal of detailed information, which made filling it out laborious. We completed the application and attached PDF statements of the dividends and the certificates of residence. We submitted the application, but had not yet received a response.
UPDATE 2026: A long time has passed, but we still have not received any update from Germany.
Sweden – Form 3740
Sweden’s taxation of investment income differs from the Finnish system, but the tax treaty between the two countries helps to prevent double taxation. Sweden typically withholds 30% tax on dividends. Under the treaty, Sweden may withhold a maximum of 15% from a Finnish investor’s dividends so that the excess can be reclaimed from the Swedish tax authorities via a separate application.
We applied for a refund from Sweden using PDF form 3740, which we downloaded from the Swedish Tax Agency’s website. The first challenge was opening the form: we had to update Adobe Reader before the form would work properly. After the update, we were able to open and complete the form on our computer.
Compared to our earlier applications, the Swedish form was surprisingly simple and quick to complete because it did not request unnecessary details. We printed the forms and mailed them to Solna, Sweden. We attached our certificates of residence and Nordea’s dividend calculations. For the time being, we had not received a decision or a request for additional information.
UPDATE 2026: We received a clear and prompt response from Sweden by post. However, no refund was paid, because based on Nordea’s information, the application had been sent to the wrong country – it should have been addressed to Switzerland.
Norway – RF-1534
Norway’s taxation of investment income differs from the Finnish system, but the tax treaty between Finland and Norway prevents double taxation. Norway typically withholds 25% tax on dividends. Under the treaty, Norway may tax dividends from Norwegian shares received by a Finnish resident at a maximum rate of 15%. The excess can therefore be reclaimed from the Norwegian tax authorities.
Applying for a tax refund from Norway went fairly smoothly through the Altinn system. Once again, the biggest challenge was finding the correct page to start the process.
We recommend starting from the Norwegian Tax Administration’s dividend tax refund page, which provides instructions and an easy path into the Altinn system. It is possible to create an Altinn user account even without a Norwegian national identification number.
Although the form was electronic, filling it in did not go entirely without issues. The service was less smooth than OmaVero, but the built-in error checking helped us catch the most obvious mistakes. Because of the form’s complexity, we were not completely sure we had filled it in correctly. Still, we submitted it anyway, trusting that it would either be processed or that any requests for clarification would arrive by email.
UPDATE 2026: A long time has passed, but we still have not received any update from Norway.
Denmark – eForm
Danish dividend taxation differs in some respects from the Finnish system, but the tax treaty between Finland and Denmark also prevents double taxation. Denmark generally withholds 27% tax on dividends. Under the treaty, Denmark may tax dividend income received by a Finnish resident at a maximum rate of 15%. The excess 12% can be reclaimed from the Danish tax authorities via a separate refund application.
We quickly found information on the Danish tax authority’s website about reclaiming withholding tax, but the link to the refund form was broken. After a bit of searching, we also found a working instruction page for withholding tax refund applications. To our pleasant surprise, the refund could be requested using an online form without authentication.
The form was clear and user-friendly, so completing it was quick. We attached the required documents as PDFs. The only downside was that we did not receive a confirmation message or acknowledgement after submitting the form. We had not yet received a decision on the application.
UPDATE 2026: After about 10 months, we received two letters from Denmark stating that processing was severely backlogged. The estimated remaining processing time was around 18 months, but interest would be paid for the waiting period.
Canada – NR7-R
Canada’s taxation of dividend income differs somewhat from the Finnish model, but the tax treaty between the countries reduces the risk of double taxation. Canada normally withholds 25% tax on dividends. Under the treaty, however, Canada may withhold tax of up to 15% from dividends paid to a Finnish resident. The excess 10% can be reclaimed from the Canada Revenue Agency through a separate application process.
We also sought a refund of excess withholding tax from Canada, and the process required a lot of work. We had to complete a separate PDF form for each withholding tax for which we wanted a refund. These forms, together with the certificates of residence, had to be sent to Canada on paper. The stack of documents grew quite large, increasing postage costs. We also attached a separate form to provide our bank details and entered our Wise account information there.
To our surprise, about a month later, we received a letter from the Canada Revenue Agency stating that the forms were missing signatures in the sections where the dividend payer or intermediary should have confirmed the accuracy of the information. In practice, getting signatures from foreign companies proved almost impossible, and Nordea was also unwilling to sign the forms. We sent the documents back to Canada without the required signatures. Still, this time we attached Nordea’s dividend summary and a cover letter requesting that the application be processed based on the attached documents. We had not yet received a final decision.
UPDATE 2026: Reclaiming tax from Canada is now almost free of charge, but all dealings with the Canadian tax authority still take place by postal mail, which makes the process quite cumbersome.
Challenges In Reclaiming Foreign Dividend Taxes – A Tip For Success
Recovering excessive foreign withholding tax on dividends is difficult. Most countries have complex refund procedures, and in some cases, the process is particularly demanding. On top of that, processing times are often very long.
The forms use many different terms for the same things, so finding the correct response can be tricky. Some countries require signatures from the bank, the dividend payer, and the Finnish Tax Administration. Obtaining these signatures is surprisingly difficult.
The most advanced countries use electronic systems that make communication and requests for additional information more efficient. On the other hand, some countries remain very old-fashioned, and Canada is a good example. The Canada Revenue Agency still relies on traditional correspondence across the Atlantic, which considerably slows the process. It is quite likely that refund procedures are deliberately kept difficult to minimise the number of refund applications.
Our tip for success: be patient!
Is It Worth Applying For Withholding Tax Refunds?
It is usually not worth it if you value your time. For a small investor, learning the process and submitting the applications can take many hours, and the refunds are typically modest. Administrative fees, postage, and printing documents add to the costs, and there is no guarantee that the applications will be approved. Resolving any issues that arise is also laborious.
For more professional investors, the paperwork becomes so burdensome that handling it personally is rarely worthwhile. Outsourcing, in turn, is generally so expensive that it is not financially sensible. For these reasons, reclaiming foreign taxes often does not make economic sense.
It would be ideal if countries automated their tax processes with each other. Alternatively, it would be excellent if stockbrokers handled refund applications on behalf of their clients and dealt directly with the source countries to ensure that taxes are not withheld in excess of the amounts allowed under tax treaties.
Starting Points For Foreign Withholding Tax Reclaims
Below is a list of links if you are planning to file a reclaim application in any of the countries discussed above. You will need dividend statements from your broker as well as certificates of residence.
- Switzerland: Forms for the Refund of Anticipatory Tax
- Germany: Electronic Data Submission (BOP)
- Sweden: Swedish Withholding Tax on Dividends
- Norway: Application for Refund of Withholding Tax
- Denmark: Claiming Refund of Danish Dividend Tax
- Canada: NR7-R Application for Refund of Part XIII Tax Withheld
Bottom Line
Taxation of foreign dividend and interest income easily leads to double taxation, but with careful documentation and well-prepared refund applications, excess tax can usually be recovered. Tax treaties provide the legal framework, but the practical work still requires time and effort.
Our experience showed that each country has its own process. Obtaining certificates of residence in Finland was still relatively straightforward, but the actual refund applications required considerable work and patience.
Although preparing the applications was laborious, the process taught us a great deal about international taxation and also produced results. We encourage other investors to look into the topic. Careful work is rewarded, and in the end, the tax refunds may well be worth the effort.