W-8BEN explained (non-US investors): what it does, how to fill it, and what to avoid
The W-8BEN is the form most non-US investors complete at a broker to document foreign status and (when eligible) claim a reduced treaty rate on US dividends. Fill it wrong and you can get default withholding.
FAST PATH
If you buy US-listed stocks/ETFs, get the W-8BEN right
This guide is practical: what the form changes, how long it lasts, and how to fill each line so your broker can apply the correct withholding workflow.
Disclosure: We may earn a commission if you open an account using our links. You do not pay extra.
Educational content only. Not personalized investment or tax advice.
W-8BEN in 30 seconds
- What it does: tells your broker you are not a US person for tax purposes.
- Why it matters: it affects withholding tax on US-source income (mainly dividends).
- When you need it: typically when opening a broker account that gives access to US markets.
- Most common failure: mismatched name/address + wrong treaty claim logic.
W-8BEN cheat sheet (field-by-field)
| Line | What to enter | Notes |
|---|---|---|
| 1 | Your full legal name | Match your account profile exactly. |
| 2 | Country of citizenship | Use your passport country. |
| 3 | Permanent residence address | No PO box; use your real residence. |
| 5 | Mailing address (only if different) | Leave blank if same. |
| 6 | Foreign tax identifying number (if required) | Depends on broker workflow; don’t invent numbers. |
| 9–10 | Treaty claim (if applicable) | Only claim what you understand; wrong claims create delays. |
| Sign | E-sign + date | Ensure name matches Line 1. |
Educational content only. Not personalized investment or tax advice.
Mistakes that cause delays or wrong withholding
- Name/address on the form doesn’t match your broker profile.
- Claiming a treaty rate without meeting the requirements (or not knowing what you claimed).
- Using an address that looks like mail-forwarding instead of residence.
- Leaving IDs blank when the broker explicitly requires one (or entering a fake one).
What the W-8BEN is (and what it is not)
The W-8BEN is an IRS form used by non-US individuals to certify foreign status for US withholding and (when eligible) claim treaty benefits. Most brokers collect it inside the account setup or tax profile.
It does not replace your local tax rules, does not exempt you from reporting income where you live, and does not automatically guarantee a reduced rate—your broker applies a treaty rate only if your form supports it.
USE W-8BEN IF
- You’re not a US citizen/US tax resident
- You hold US-listed stocks/ETFs that pay dividends
- Your broker requests it to set the right withholding profile
DO NOT USE IT IF
- You are a US person (you’d use W-9)
- You are completing a form for a company/trust (that’s usually W-8BEN-E)
- You expect it to change capital gains tax (it usually doesn’t)
When it matters most (US-listed vs UCITS)
The W-8BEN is most relevant when you receive US-source dividends directly, typically from US-listed stocks and US-listed ETFs. If you only buy UCITS ETFs, withholding often happens inside the fund structure (you still may be asked for W-8BEN by a broker, but the practical impact can differ).
US-LISTED ETFs
You receive dividends directly. Withholding is applied at payment. W-8BEN controls the withholding profile.
US STOCKS
Same as above. W-8BEN is the standard broker tax form for foreign individuals.
UCITS ETFs
Often “fund-level” withholding exists. Your broker can still require W-8BEN, but it won’t rewrite the fund’s internal tax drag.
How long the W-8BEN stays valid
In most brokerage workflows, the W-8BEN is treated as valid from the day you sign it until the last day of the third succeeding calendar year, unless a change in circumstances makes any information on it incorrect.
EXAMPLE
Signed on June 10, 2026 → typically valid through December 31, 2029 (unless something changes that makes it wrong).
Brokers usually auto-prompt you to renew. If they don’t, you still should update it if your tax residency changes.
How to fill it (line-by-line, broker-proof)
Brokers implement the form as fields. The labels vary, but the logic is the same: identity → tax residence → treaty claim → signature.
PART I — IDENTIFICATION
Lines 1–3: name, citizenship, and “disregarded entity”
- Line 1 (Name): must match your legal name at the broker.
- Line 2 (Country of citizenship): your citizenship country, not necessarily your tax residence.
- Line 3: usually blank for individuals.
Line 4–6: permanent address + mailing + TINs
- Permanent residence address (Line 4): where you live for tax purposes (no PO box).
- Mailing address (Line 5): only if different.
- FTIN (Line 6a): your foreign tax ID (if your country issues one and the broker requires it).
- Line 6b: used when your country does not legally require an FTIN (broker UX may show a checkbox).
PART II — TREATY
Line 9: treaty claim basics
This is where you declare you are a resident of a treaty country for treaty purposes. Brokers use this to apply a reduced dividend withholding rate when applicable.
Line 10: “special rates and conditions”
Many brokers hide this unless needed. If shown, it’s for cases where the treaty requires extra conditions or a specific article reference. If you do not know what to enter, leave it blank unless your broker explicitly instructs you.
PRACTICAL RULE
The most common cause of “wrong withholding” is not “Line 10” — it’s a mismatch in tax residency, missing FTIN, or the treaty claim not being applied by the broker profile.
Part III: signature
- Certify the information is correct.
- Electronic signature is normal in broker flows.
Common errors that trigger default withholding
ERROR
Wrong tax residency (using citizenship instead of tax residence, or old address after moving)
Fix: update tax profile at broker and resubmit W-8BEN after changing residency/address.
ERROR
Missing FTIN where the broker expects it
Fix: add your local tax ID (or use the broker’s “not legally required” option where applicable).
ERROR
Treaty claim not applied (form submitted but account remains “no treaty”)
Fix: verify the withholding rate setting in your broker’s tax profile; contact support if it stays at default.
ERROR
Expired form (not renewed on time)
Fix: re-sign the W-8BEN; brokers usually prompt renewals, but don’t assume.
How to verify it worked (without guessing)
- Open a dividend payment detail for a US stock/ETF.
- Check the withholding tax line item and the % applied.
- Confirm your broker tax profile shows foreign status and (if applicable) treaty rate.
DOCUMENTS
Many brokers provide a year-end tax document for foreign investors (often a 1042-S for US-source income subject to withholding).
CLUSTER
Next steps: understand what W-8BEN actually affects
What gets withheld, when it happens, and why the rate matters.
The bigger picture: withholding is only one part of your tax workflow.
Whether you even need W-8BEN depends on what products you can access.
All the tax topics that matter for non-US investors, in one place.
CLUSTER
Next steps: implement cleanly (broker setup + reporting)
Where W-8BEN appears in onboarding and how to avoid setup mistakes.
Choose a broker that supports your country and handles withholding correctly.
Broker choice affects how clean your tax reporting and paperwork feels.
A common non-US default broker where W-8BEN is part of setup.
FAQ
Do I submit the W-8BEN to the IRS?
No. You give it to your broker/withholding agent as part of their tax documentation process.
Does W-8BEN reduce tax on capital gains?
Usually no. It mainly affects US withholding on US-source income like dividends.
Do I need a US TIN (ITIN/SSN)?
Often no for basic treaty dividend withholding, but requirements can vary by broker, country, and claim type. A foreign tax ID (FTIN) is commonly requested.
How long is the W-8BEN valid?
Typically from signature date through the last day of the third succeeding calendar year, unless a change makes it incorrect.
What if I move country?
Update your broker tax profile and resubmit the W-8BEN. A change in tax residency is a “change in circumstances.”
Is W-8BEN the same as W-8BEN-E?
No. W-8BEN is for individuals; W-8BEN-E is for entities.
NEXT STEP
If you’re using US-listed ETFs, simplify the workflow
Pick a broker that handles W-8BEN cleanly, shows withholding clearly, and doesn’t destroy returns with FX costs.
Disclosure: We may earn a commission if you open an account using our links. You do not pay extra.
Educational content only. Not personalized investment or tax advice.
Educational content only. Not personalized investment or tax advice.
Investments can lose value and past performance does not guarantee future results. You are responsible for your own decisions and for confirming tax and legal rules in your country.