Dividends are double taxed in Portugal? (US assets)
Good afternoon.
Last month it became mandatory for portuguese people to change to a Portuguese IBAN, seemed to make sense..
My issue is that starting this month, dividends are double taxed.
I was issued a US dividend of 94 usd
A tax of 15% applied, corresponding to 14.10 usd (this is ok and expected)
Remaining value was converted 79.90 eur
This value was then taxed at a full 28% (Portuguese tax)
I received a total of 46.22 eur.
The issue here is that this corresponds to double taxation, of a total of roughly 43%
While i was advised this can be recovered on the annual tax report, it still does not make sense to me, to pay even more tax than i should in Portugal
The 15% should be deducted from the 28%.
Tnis puts you in a disadvantage to all other online brokers as all compounding effect is lost AND by all means i am paying more tax than i should.
Please check this situation with your fiscal departments as this makes TR totally unfit for dividend investors owning US assets