Dividends from German dividend stocks are taxed with a withholding tax of 25% right upon receipt. Depending on your tax jurisdiction, an additional 5,5% on that 25% is levied in the form of a "solidarity surcharge" (=Solidaritätszuschlag). Example: You get a dividend of 540€ from Allianz. 25% withholding tax is instantly deducted: 135€. An additional 7,42€ representing 5,5% of the 135€ is further deducted. In total, the bank deducts 142,42€, representing a total of 26%.