Avoiding double taxation in the United States: the W-8 BEN Form
As a general rule, persons resident in Spain who purchase U.S. shares are subject to a 30% tax rate on their dividends.
To benefit from a reduction, you have to prove that you do not reside in the United States by means of the W-8 BEN form of the US Treasury Department (IRS). With the W-8BEN form, the dividend withholding tax on your U.S. securities will be 15% instead of 30%.
Dividend withholding on U.S.-issued REITs works a little differently. You will find specific information on these investment assets here.
How to file the W-8BEN form with HeyTrade
To streamline your trading, completing the W-8BEN form is part of the HeyTrade registration process. During onboarding, we will fill out the form automatically, so all you have to do is validate the information and digitally sign the file.
In addition to checking that your details (name and ID) are correct, the most important thing is that the form contains a Spanish address.
Once signed, you will be able to invest in US stocks without having to worry about double taxation. In addition, HeyTrade will take care of managing the form, storing it, and sending it to the IRS if requested. The form is valid for 3 years. When it is your turn to renew it, we will notify you by email.
Avoiding double taxation in Canada: Form NR-301
With some exceptions, the withholding tax on dividends applied to Spanish residents who buy Canadian shares is 40%. Like the United States, Canada has a bilateral agreement with Spain that avoids double taxation and limits this withholding tax to 15%.
How to fill in the NR-301 form with HeyTrade
When you buy Canadian stocks on HeyTrade, you will need to request the NR-301 form by email. Once completed and signed, you will need to return it to support@heytrade.com. HeyTrade will process the form and store it securely.
In case the Canadian Revenue Agency (CRA) requests a copy of the document, we will send it to them. The form is valid for 3 years. We will notify you by email when it is time to renew it.
At the moment HeyTrade processes the above forms but it is not possible to process other forms for withholding tax reduction in other countries.
We hope you have found this information useful. If you have any questions, please write us through our chat or send us an email to support@heytrade.com. It will be our pleasure to help you! 😊