Local EU Tax Refunds Will Be FASTER

A European real estate investment can be acquired, financed, and reported across continents with relative ease. Yet when dividends are distributed and local withholding tax is applied, obtaining treaty relief often reverts to fragmented national procedures, paperwork, and mismatching local timelines. The European Union’s FASTER Directive is designed to address this.

A modernisation of withholding tax relief

The EU Directive on Faster and Safer Relief of Excess Withholding Taxes (FASTER) introduces a framework for facilitating relief from excess withholding tax on cross-border portfolio income. Its purpose is to streamline how tax rights are exercised. This means replacing manual and inconsistent processes with a more standardised digital system. Investors currently face delays and uncertainty in reclaiming tax, while tax authorities lack visibility in complex payment chains that have enabled abuse. FASTER addresses both issues simultaneously.