For instruments traded on US markets
Stock
A dividend tax is automatically withheld for all dividends received from US listed companies in accordance with US tax regulation. The dividends after tax are paid as cash to your US Dollar account balance.
As part of onboarding, Lightyear generates and submits an IRS W8-BEN form on behalf of our users based on the information provided at registration to reduce the withholding tax rate where applicable. Please contact our Support team if your details are incorrect or have changed to ensure your tax reporting is accurate.
Currently, for tax residents of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Slovakia, Slovenia, Spain, and the United Kingdom, the dividend withholding tax is 15%.
For tax residents of Croatia, Greece, and Hungary the dividend withholding tax rate is 30%.
ADR
For ADRs tax is withheld at the source instrument, based on the local withholding rates of the underlying instrument. Currently non-treaty withholding rates apply for all Lightyear users.
As we don't withhold any taxes and what's credited to your Lightyear account is the received net amount, you'll see the tax withholding rate as 0.00% in the transaction confirmation in the app. If unsure, consult with a local professional to determine the accurate applicable tax rate of the ADR dividend you received. For large European markets these can be found below.
For instruments traded on UK and EU markets
The following table shows the Dividend Withholding Tax Rates for European issued instruments. Currently non-treaty withholding rates apply for all Lightyear users.
| Instrument country | Instrument type | Withholding tax rate |
|---|---|---|
| Belgium | Stock | 30% |
| France | Stock | 25% |
| Germany | Stock | 26.375% |
| Ireland | ETF | 0% |
| Netherlands | Stock | 15% |
| Spain | Stock | 19% |
| UK | Stock | 0% |
Please note that these rates here are informational and they are subject to change depending on local tax laws.
It's important to know that Lightyear cannot give tax advice as it always depends on your personal circumstances and local tax laws. We recommend talking to a local tax professional if you have any specific questions about reporting. See also Taxes and statements