What is the interest withholding rate between Germany and United States?
The Germany-United States tax treaty reduces the withholding rate on interest payments to 0%. This means interest paid between residents of these two countries is exempt from withholding tax at source. This is particularly beneficial for cross-border debt financing and bank deposits. The 0% rate still requires proper documentation β it does not apply automatically. Interest is fully exempt β Germany has 27 such treaties in its network.
Network Comparison
Germany
Rank 27 of 49 active treaties (lowest rate = #1)
Lower rates with: Sweden (0%), Singapore (0%), Slovak Republic (0%)
Higher rates with: Chile (5%), Israel (5%), Saudi Arabia (5%)
United States
Rank 7 of 64 active treaties (lowest rate = #1)
Lower rates with: Canada (0%), Switzerland (0%), Czech Republic (0%)
Higher rates with: Denmark (0%), Spain (0%), Finland (0%)
Sources
- United States Treaty Reference(treaty text)
- IRS Table 1 (Withholding Rates)(rate table)
Data last reviewed: 2026-04-07