Fixed Deposit Taxes by Country in Europe
The advertised rate on a fixed deposit is a gross number. What lands in your bank account depends on where the deposit is held, where you are resident, and whether a double-tax treaty applies between the two.
The withholding-tax map
The nominal domestic withholding tax on interest is a flat rate in most EU countries: Germany 25% + Soli (26.375%) + church tax if applicable; France 30% PFU (12.8% IR + 17.2% social); Spain 19% up to €6,000 / 21% / 23% / 27% progressive; Italy 26% imposta sostitutiva; Portugal 28% flat; Belgium 30% precompte mobilier; Netherlands no withholding but Box 3 wealth-tax treatment on the underlying; Ireland 33% DIRT.
Countries with low or zero domestic withholding on cross-border interest include Estonia, Latvia and Lithuania (often 0% at source, taxed only in the recipient's country), and Malta and Cyprus (low or default rates depending on structure).
For a resident of Portugal buying an Estonian deposit through a platform, the practical flow is: Estonian bank withholds 0%, pays the full gross interest to the depositor's cash account, and the Portuguese tax authority receives the CRS report and expects the depositor to declare and pay Portuguese IRS on the interest.
Treaty relief and paperwork
Every EU member state has a bilateral double-tax treaty with every other member state (and with most non-EU jurisdictions). Under the OECD Model Treaty, interest is generally taxable in the recipient's country of residence, with a reduced source-country withholding rate — typically 0%, 10% or 15% depending on the pair.
To access the reduced rate, the depositor usually files a certificate of tax residency (a form issued by the home tax authority) with the bank before interest is paid. Without the certificate, the bank applies the full domestic rate and the depositor reclaims the excess later — a slow, paperwork-heavy process.
Cross-border platforms (PickTheBank, Raisin) collect the residency certificate at onboarding and pass it to the bank, avoiding upfront over-withholding.
Withholding tax on interest, selected EU countries (2026)
| Country | Domestic rate | Cross-border treaty rate (typical) |
|---|---|---|
| Germany | 26.375% | 0% at source, taxed at home |
| France | 30% (PFU) | 0% at source, taxed at home |
| Spain | 19–27% | 0% at source, taxed at home |
| Italy | 26% | 0% at source, taxed at home |
| Portugal | 28% | 10–15% at source or full at home |
| Belgium | 30% | 0% at source, taxed at home |
| Netherlands | 0% (Box 3 wealth tax applies) | 0% at source |
| Ireland | 33% (DIRT) | 0% at source, taxed at home |
| Estonia / Latvia / Lithuania | 0% for many cross-border cases | 0% at source |
Rates are the standard domestic rate for retail residents. Treaty rates for cross-border pairs are usually 0–15%.
How to think about net yield
Always compare offers on a net-of-tax basis. For a German resident (26.375% effective), a 3.20% gross deposit in Estonia (0% at source, 26.375% at home) delivers 2.36% net. A 2.60% gross deposit in Germany delivers 1.91% net — an 45 bp gap that adds up over €100,000 of savings.
For a Portuguese resident (28% flat), a 3.00% Estonian deposit delivers 2.16% net and a 2.50% Portuguese deposit delivers 1.80% net.
The tax layer never reverses the ranking of a well-priced cross-border deposit — it just narrows the gap. The gross-rate cross-border offer almost always wins after tax.
Frequently asked questions
- Yes, in every EU member state — as ordinary interest income, at a flat rate in most countries and progressively in a few. CRS/DAC2 automatic exchange means your tax authority sees the interest regardless of where the account is held.
Related on Banks.eu
Informational purpose only. Rates and product terms change frequently — always verify with the issuing institution before opening an account. Some links may be affiliate or partner links and never influence editorial rankings.
