The true cost of doing nothing about withholding tax on your foreign dividends
"Doing nothing" isn't free: it's an over-withholding that expires at the statute-of-limitations date. The numbers behind inaction, the panel's shortest deadlines, and the success fee.
Data reviewed on 7 min read
Recovery cost is usually compared to zero — as if "doing nothing" were a neutral option. It isn't: every year, part of what you could have claimed crosses its statute-of-limitations date and disappears for good. The real comparison isn't "paying a commission" versus "paying nothing" — it's an over-withholding that quietly expires versus an over-withholding recovered, minus a commission that only exists on what is actually collected.
What expires while the file waits
Every country in our panel has its own statute of limitations, and some are far shorter than most investors assume. Here are the five shortest windows among countries with a genuine gap for a French resident:
| Country | Time to act | Recoverable gap |
|---|---|---|
| 🇨🇦 Canada | 2 years | 10% of the gross dividend |
| 🇵🇹 Portugal | 2 years | 10% of the gross dividend |
| 🇺🇸 United States | 3 years | 15% of the gross dividend |
| 🇨🇭 Switzerland | 3 years | 20% of the gross dividend |
| 🇩🇰 Denmark | 3 years | 12% of the gross dividend |
Two years, sometimes three: at that scale, "I'll deal with it next year" often means simply giving up one or two years of dividends already paid. The full breakdown, country by country, is in our statute-of-limitations ranking.
The calculation "doing nothing" skips
Take a concrete example: €3,200 of over-withholding identified on Swiss dividends. Doing nothing nets exactly €0. Filing the claim, once the success fee is applied to the amount actually recovered, nets this:
| Tier | Rate | Fee on this tier |
|---|---|---|
| €0 → €2,500 | 25% | €625 |
| €2,500 → €3,200 | 18% | €126 |
Versus €0 net if the file is never opened and the statute of limitations runs out. Success fee only: €39 minimum per successful file, never charged if nothing is recovered, capped at €5,000.
This isn't a marketing line — it's arithmetic. A commission charged only on a recovered amount always leaves more than an amount that was never claimed at all. The full pricing breakdown — and the cases where doing it yourself is still preferable — is in our article on the real cost of a recovery claim.
Why inaction costs more than it looks
- The clock doesn't pause. A dividend paid today starts running toward its statute-of-limitations date the moment it's paid, whether or not you've started a claim.
- History accumulates but doesn't get a grace period. Waiting three years to start doesn't leave three years of over-withholding to claim: the oldest years are already time-barred, at different paces per country.
- Preparation cost doesn't drop over time. Gathering multi-year-old brokerage statements is slower and less certain than handling a recent file — without the recoverable amount growing to match.
Your questions on the cost of inaction
If my amount is small, is it better to do nothing?
Not necessarily "do nothing" — rather, do it yourself. On a very small amount and a single country, the minimum fee may not be the best option: our free diagnostic says so plainly when that's the case, and our DIY comparison gives the threshold.
Does the initial diagnostic cost anything?
No: the diagnostic is free, and it's exactly what tells you whether a file is worth opening before you have anything to lose by checking.
What happens if the file doesn't succeed?
No commission is due: the "no win, no fee" principle applies in full. The only real cost of inaction is the over-withholding itself, which keeps running toward its deadline while you hesitate.
No win, no fee · Pricing 100% public · FR / EN