If you’re a UK resident receiving dividends from Swiss investments, you will likely incur a 35% withholding tax on those earnings.
That’s a significant cut — but the good news is, you may be able to reclaim a large portion of that tax.
In this guide, we’ll break down how Swiss dividend withholding tax is applied to investments for UK residents, how to reclaim it, and what the UK-Switzerland tax treaty means for you.
Does Switzerland have a tax treaty with the UK?
Yes, Switzerland and the United Kingdom have a double taxation agreement (DTA).
This treaty is designed to prevent you from being taxed twice on the same income and outlines how much tax each country can levy on dividends, interest, and royalties.
Under this agreement, UK residents can reclaim part of the Swiss withholding tax on dividends — bringing the effective rate down from 35% to 15% in most cases.
The good news is that you can do this easily with Sprintax Dividends. Our software streamlines the withholding tax reclaim process, ensuring you receive your DWT refund without having to do any hard work.
How does Swiss Dividend Withholding Tax apply to UK residents?
When a Swiss company pays you a dividend, 35% of it is automatically withheld by the Swiss tax authorities. For example:
- Gross dividend: CHF 1,000
- Withholding tax: CHF 350
- You receive: CHF 650
Thanks to the tax treaty in place between the UK and Switzerland, UK residents can reclaim 20%.
This will reduce the final Swiss withholding tax for UK residents to 15% — in line with the treaty rate
However, it’s worth noting that some UK residents may even claim a full 35% DWT refund. This is seen in cases where the dividends are paid in a Self-Invested Personal Pension (SIPP) account.
How do I reclaim my Swiss withholding tax on dividends using Sprintax Dividends?
Claiming your DWT refund with Sprintax Dividends is easy.
Here’s how to submit your Swiss withholding tax reclaim application in just a few short steps with Sprintax Dividends Flex:
1. Create a Sprintax account
Firstly, quickly create an account at Sprintax Dividends.
2. Prepare a DWT refund application with Sprintax
Next, Sprintax will then produce an estimate of your DWT refund, prepare a refund application, and then provide you with instructions on how to get the application certified by HMRC.
3. Refund of Swiss dividend tax withholding
Once certified, the application is submitted to the Swiss tax authorities. Upon approval, the refund will be paid directly into the bank account you’ve nominated through Sprintax.
It’s that easy!
DWT refunds can take several months to process, so make sure everything is correct and complete.
At Sprintax Dividends, we specialise in helping non-residents and expats manage cross-border tax obligations.
If you’re a UK resident struggling with reclaiming your Swiss dividend withholding tax, we can guide you through the reclaim process, ensuring accuracy, speed, and peace of mind.
We’ll secure your maximum refund without delay, ensuring you receive everything you are owed!
