MEP Sophia Kircher (PPE) has asked the Council of the European Union to address persistent double taxation on dividends for EU retail investors, warning that cumbersome refund procedures deter cross-border investment and cause permanent revenue losses for citizens.
In a parliamentary question submitted on 26 June 2026, Kircher highlighted that investors receiving dividends on foreign shares within the EU often face double taxation despite existing bilateral agreements. While refunds are theoretically possible, she noted that many banks do not offer the service and the process is lengthy and complex, leading many investors to forgo claims. She contrasted this with the relatively straightforward refund procedure for US securities.
The MEP acknowledged the FASTER Directive (EU) 2025/50, which aims to simplify withholding tax procedures, but pointed out that its measures will not apply until 2030 and will only partially resolve the issue. Her three-part question asks the Council: what view it takes of the practical obstacles to refund or relief of withholding tax on dividends within the EU; what further measures beyond FASTER it considers necessary to facilitate cross-border investment; and whether a largely automated system for offsetting withholding tax liabilities could be introduced in the long term to simplify the application of double taxation agreements.
The question signals a push for faster and more comprehensive action to reduce administrative burdens on retail investors, particularly younger citizens building portfolios via online brokers. The Council is expected to reply within approximately six weeks, and its answer will indicate whether member states are open to additional measures or prefer to await FASTER's implementation.