Your guide to investing in European stocks from Canada

The European Union is the world’s largest trading bloc, the biggest import market for over 100 countries and the biggest export of manufactured goods and services¹. For Canadians looking to invest beyond North America, Europe offers access to a wide range of strong, established markets—whether it’s tech in Germany, luxury fashion in France, or renewable energy in Scandinavia.

In this guide, we’ll walk you through how to invest in European stocks from Canada, including the platforms you can use, what legal and tax considerations to keep in mind, and how a tool like Wise can help reduce foreign exchange costs while you manage your global investments with confidence.

We will discuss:

Can Canadians invest in European stocks? Legal & regulatory overview What Canadians can do: What Canadians cannot do: How to buy EU stocks from Canada: A step-by-step guide Best platforms to buy EU stocks in Canada Comparison of major brokerages What are the main EU stock exchanges? Tax considerations for Canadians investing in EU stocks Capital gains Foreign withholding tax on dividends Form T1135 – Foreign Income Verification Statement Passive investing in EU markets Currency exchange: What to know before you buy Wise: A smarter way to handle currency conversion for EU investing Why use Wise to buy EU stocks from Canada? Commonly asked questions about buying EU stocks from Canada

Can Canadians invest in European stocks?

Canadians can invest in European stocks (and many do) to gain exposure to a wider range of industries, currencies, and markets. While access is generally available through select Canadian and international brokerages, investing overseas comes with additional legal, regulatory, and tax responsibilities that are important to understand before getting started.

Legal & regulatory overview

Here’s what Canadians can and cannot do when it comes to investing in European markets:

What Canadians can do:

Access foreign markets via Canadian or international brokerages: Platforms like Interactive Brokers provide access to major European exchanges such as the London Stock Exchange (LSE), Euronext, and the Frankfurt Stock Exchange.

Buy European-listed stocks directly or indirectly: You can invest via direct stock purchases, exchange-traded funds (ETFs), or American Depositary Receipts (ADRs) listed on U.S. exchanges.

Hold investments in registered or non-registered accounts: TFSAs, RRSPs, and standard brokerage accounts are all permitted for holding foreign assets, though tax treatment varies.

Claim foreign tax credits: Canadians can typically claim credits for foreign withholding taxes paid on dividends, reducing their Canadian tax bill.

What Canadians cannot do:

Avoid reporting foreign holdings: Canadian residents must report foreign investment property (including stocks) over CAD $100,000 in total cost on Form T1135 – Foreign Income Verification Statement².

Ignore country-specific rules: Each European country has its own securities laws and tax treaties with Canada. For example, dividend withholding rates vary—35% in Switzerland, 25%³ and 0% in the UK⁴ (for most individual investors).

Expect the same investor protections: Canadian investors are protected under CIPF (Canadian Investor Protection Fund) when using Canadian-regulated brokerages. Investments made through foreign brokers may not offer the same safety nets.

How to buy EU stocks from Canada: A step-by-step guide

Getting started with investing in European stocks from Canada is straightforward with the right tools. Here’s a step-by-step guide to help you open an account, fund it, make your first EU stock purchase, and meet reporting obligations.

Step 1: Open a trading account

Choose a brokerage that offers access to European markets. Popular platforms among Canadians include:

• Interactive Brokers – Access to major European exchanges
• Questrade – Access via ETFs and some direct foreign markets
• TD Direct Investing and Scotia iTRADE – Limited international access

Select your account type based on your investment goals:

• Personal (non-registered) – Standard taxable account
• TFSA – Tax-free growth and withdrawals (foreign withholding tax may still apply)
• RRSP – Contributions are tax-deductible; may reduce withholding tax
• RESP/FHSA – For education or first home savings (less commonly used for international investments)

Step 2: Verify your identity

Canadian brokerages require identity verification as part of FINTRAC’s KYC (Know Your Customer) obligations. You’ll typically need:

• A valid government-issued ID (e.g., driver’s license or passport)
• Your SIN (Social Insurance Number)
• Proof of address (e.g., utility bill), email address, phone number, etc.

This process can usually be completed online.

Step 3: Fund your account

Once your account is open, link your Canadian bank account to transfer funds. You’ll need to convert Canadian dollars (CAD) into the currency of the stock you're buying—most often euros (EUR), pounds (GBP), or Swiss francs (CHF).

• Broker FX rates usually include markups of 1.5–2.5%^5,6 or more.
• Wise can help reduce foreign exchange costs when funding accounts abroad, using the real mid-market rate with transparent fees.

Step 4: Choose and buy EU stocks

Once your account is funded and your currency is converted, you’re ready to invest. You can:

• Search for specific stocks on European exchanges
• Invest through ETFs that track regional indexes (like the Euro Stoxx 50)
• Use ADRs listed on US exchanges for easier access with USD

Enter the order details (stock symbol, quantity, order type) and confirm the trade.

Step 5: Monitor your investments

Track your holdings through your platform's dashboard. Keep an eye on:

• Exchange rates (as returns may be affected by currency fluctuations)
• Market hours (European markets often close before North American ones open)
• Stock performance and dividend payouts

Step 6: Report foreign investments

If the total cost of your foreign investments exceeds $100,000 CAD, you must file a CRA Form T1135² – Foreign Income Verification Statement annually.

You must also report:

• Foreign income (e.g. dividends) on your Canadian tax return
• Capital gains on the sale of European stocks

Best platforms to buy EU stocks in Canada

Canadian investors interested in European stocks have several brokerage platforms to choose from. Each offers different levels of access to EU markets, currency conversion options, and fee structures. Choosing the right platform depends on your investment goals, preferred markets, and how you want to handle currency exchange.

Comparison of major brokerages

Platform	EU Market Access	Foreign Currency Support	CAD to EUR Conversion Fee
Questrade	Limited access - mostly ETFs and ADRs	Supports USD	Around 1.5% currency conversion markup5
Interactive Brokers Canada	Direct access to major European exchanges	Multi-currency accounts including EUR	Low FX fees, typically 0.1% - 0.2% spread7
Wealthsimple Trade	Limited direct EU stock access; mainly North American stocks and ETFs	No foreign currency accounts	Conversion fee approx. 1.5%8
Scotia iTRADE	Limited access to European stocks, mainly via ADRs or ETFs	Supports USD accounts	Conversion fee around 2.5%9
TD WebBroker	Limited access; some European stocks and ETFs available in CAD or USD	Supports USD accounts	Currency conversion markup approx. 2.5%6

What are the main EU stock exchanges?

Europe is home to several major stock exchanges where Canadian investors can find opportunities to invest in established companies across various sectors. Here’s a quick overview of the leading European exchanges, the countries they’re based in, their top-listed companies, and the currencies they trade in. The leading EU exchanges and top companies include:

Exchange	Country	Major Stocks	Market Currency
Euronext	Pan-European (Headquarters in Amsterdam)	L’Oréal (France), Airbus (France), Unilever (Netherlands), Philips (Netherlands)	Euro (EUR)
Xetra/Frankfurt	Germany	Siemens, Volkswagen, SAP, Allianz	Euro (EUR)
Borsa Italiana	Italy	Eni, UniCredit, Ferrari, Intesa Sanpaolo	Euro (EUR)
Bolsa de Madrid	Spain	Banco Santander, Telefónica, Iberdrola, Inditex	Euro (EUR)

Tax considerations for Canadians investing in EU stocks

Investing in European stocks from Canada comes with specific tax rules that you need to understand to stay compliant and optimize your returns.

Capital gains

When you sell EU stocks at a profit, the gain is considered a capital gain and must be reported on your Canadian tax return. Only 50% of the capital gain is taxable at your marginal tax rate¹⁰. Losses can be used to offset capital gains in the same year or carried forward/back to other years.

Foreign withholding tax on dividends

European countries often impose withholding tax on dividends paid to foreign investors. The rates vary by country and depend on tax treaties between Canada and the respective EU country. For example, Switzerland withholds 35% on dividends³ whereas this is 0% in the UK⁴ . You can often claim a foreign tax credit on your Canadian return to offset this tax, but full recovery depends on the treaty terms.

Form T1135 – Foreign Income Verification Statement

If the total cost of your foreign property, including stocks held in EU markets, exceeds CAD 100,000 at any time in the year, you must file Form T1135 with the CRA². This form reports your foreign investments and income to ensure proper tax compliance.

Passive investing in EU markets

Investing via ETFs or mutual funds that hold European stocks can simplify tax reporting. However, foreign withholding tax on dividends may still apply and should be factored into your investment strategy. Some ETFs might distribute foreign income subject to withholding, which you can claim as a credit. Understanding how these passive investments are taxed helps optimize your after-tax returns.

Currency exchange: What to know before you buy

When investing in European stocks, currency exchange plays a crucial role in your overall costs and returns.

• Exchange rates fluctuate: Currency values between CAD and EUR (or other European currencies) can change, affecting the value of your investment and returns when converted back to CAD.
• Conversion fees: Brokerages often charge currency conversion fees or add a markup to the exchange rate, which can reduce your investment’s value.
• Timing matters: The timing of currency conversion can impact costs, especially when funding your account or repatriating profits.
• Settlement currency: Some EU markets trade in currencies other than the euro (e.g., GBP for UK stocks), which may add complexity and extra conversion steps.
• Reporting impact: Currency gains or losses may also affect your tax reporting and capital gains calculations.

To make things easier and save money on currency exchange, many Canadians turn to services like Wise.

Wise uses the real exchange rate and keeps fees low and clear, so you can top up your brokerage account or bring your investment returns back home without losing a chunk to hidden conversion costs.

Wise: A smarter way to handle currency conversion for EU investing

Managing currency exchange efficiently can have a significant impact on your returns when investing in European stocks from Canada. With transparent pricing, fast transfers, and low fees, Wise is a reliable, cost-effective way to fund your international investments and bring your profits back to Canada.

Why use Wise to buy EU stocks from Canada?

• Real exchange rate: Wise uses the mid-market rate without hidden markups, ensuring you get a fair deal on your currency conversions.
• Low, transparent fees: Unlike traditional banks and brokers, Wise clearly shows the small, upfront fees before you transfer, so you know exactly what you’re paying.
• Faster transfers: Wise processes international transfers quickly, helping you fund your brokerage account in euros or other European currencies without unnecessary delays.
• Multi-currency account: With the Wise Account, you can get an IBAN in Canada, hold and convert 40+ currencies, including euros and Canadian dollars, making it easier to manage your investments and cash flow.
• Easy to use: The Wise platform is user-friendly, with mobile and desktop access, allowing you to send money or convert currencies anytime, anywhere.
• Safe and regulated: Wise is regulated by financial authorities worldwide, giving Canadian investors peace of mind when transferring funds internationally.

Commonly asked questions about buying EU stocks from Canada

Q: Can I buy European stocks from Canada?

A: Canadian investors can buy European stocks through many online brokerage platforms that offer access to international markets. Some brokers provide direct access to major European exchanges, while others may offer European stocks via ETFs or ADRs (American Depository Receipts).

Q: What are the best EU stocks to invest in?

A: The best European stocks depend on your investment goals and risk tolerance. Europe has a lot to offer—from cutting-edge tech companies in Germany to luxury brands in France and renewable energy firms in Scandinavia. Many investors also like to focus on well-established blue-chip stocks listed on big exchanges like Euronext and Xetra because they tend to be more stable and reliable over time.

Q: Do I need to convert CAD to EUR to invest in European stocks?

A: Generally, yes. Buying European stocks typically requires euros or other local currencies depending on the market. Many brokerages handle currency conversion for you but often at a markup. Using a service like Wise can help you get better exchange rates and save on conversion fees.

Q: How are European investments taxed in Canada?

A: Income from European investments is taxable in Canada. Dividends may be subject to foreign withholding tax, which you can often claim as a foreign tax credit. Capital gains on the sale of European stocks must also be reported. Additionally, if your foreign investments exceed certain thresholds, you may need to file Form T1135 to disclose those holdings to the Canada Revenue Agency.

Conclusion

European stocks open the door to some of the world’s most established markets and innovative industries, making them an attractive option for Canadians looking to diversify beyond North America.

That said, investing overseas comes with a few extra steps. Be sure to factor in tax rules, currency exchange, and the reporting requirements. And if you’re converting CAD to EUR, a service like Wise can help you keep more of your money by cutting down on fees. With the right tools and information, you can invest internationally with confidence.

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Sources:

1. Achievements and benefits | European Union
2. Questions and answers about Form T1135 - Canada.ca
3. Global withholding tax relief - United Kingdom
4. United Kingdom - Corporate - Withholding taxes
5. Trading Commissions & Fees | Pricing | Questrade
6. TD Direct Investing Commission Schedule and Statement of Disclosure of Rates and Fees
7. Currency Trading | Interactive Brokers LLC
8. Wealthsimple Investments Inc. Fee Schedule for Self-Directed Accounts
9. Credit Card Fees | Scotiabank Canada
10. Understanding taxes and your investments

Sources verified on 9 July, 2025