EU members want to make it easier for investors to get double taxation refunds

It could soon become easier for investors in other European countries to get refunds for cases of double-taxation. European Union finance ministers agreed to a plan to help EU residents quickly receive a tax refund if they receive dividends and interest from an investment in a different Member State. They are often improperly charged tax both in the country of the investment, and their country of residence.

The “very important” new rules do not only help investors, but also the European economy, said Dutch caretaker State Secretary Marnix van Rij. Investors are currently still hesitant to invest in other EU member states, said Van Rij after a meeting with his EU colleagues in Brussels this week. He said the European economy can only compete with the United States and China if European entrepreneurs can find investors to start their companies or help them grow.

A Dutch resident receiving dividends on Italian shares or German bonds can certainly be hit twice. Although this money can be recovered, it is usually very complicated and time-consuming. The finance ministers of the EU member states have now agreed that they will immediately charge the correct tax bill or send back the excessive fees within a specific timeframe.

Van Rij thinks the new rules will eliminate this hurdle, although “it will take a couple of years” before they are implemented. Ministers will still need European Parliament to first give its own non-binding opinion on the deal. The legislative body is on recess until July, with elections set for June 6-9.

Finance ministers can only begin the attempt to adopt the proposal as a law once this happens.