Investors can file an application to secure the treaty rate after the dividend is paid. In these reclaim regimes, investors submit claims to recover the difference between the unfavorable statutory rate and the favorable treaty rate.

For example, if an investor receives a $1000 Swiss dividend, they would be taxed at the 35% rate Swiss statutory rate when the dividend is paid. If they are eligible for the 15% treaty rate, they can submit a reclaim application to the tax authority and get a refund of 20% of the withheld tax, or $200. 

As long as a shareholder falls within the Statute of Limitations–the time limit for submitting reclaim applications–he or she is eligible to recover taxes. Unfortunately, receiving this refund payment takes time; it can take, on average, between two and three years for foreign tax authorities to process reclaims.