Austria NRIs · Dividend Tax
Dividend tax on Indian shares for NRIs in Austria
Dividends from Indian companies are withheld at the non-resident rate before they reach you in Austria — here's the treaty position and how to reclaim any excess.
India-Austria key facts: dividend tax
| Default Section 195 rate | 20% |
| India-Austria DTAA treaty rate | 10% |
| Your saving via the treaty | 10% |
| Treaty article / basis | Article 10: flat 10% treaty cap on Indian-source dividends |
| Your TRC issuing authority | Wohnsitzfinanzamt (local tax office, under the Federal Ministry of Finance) |
Rates reflect India's domestic Section 195 withholding and the India-Austria treaty. Surcharge and cess apply on top where relevant.
How it works on the India side
Since the 2020 shift back to classical dividend taxation, dividends from Indian companies are taxable in the shareholder's hands and the company deducts TDS before paying. For a non-resident the default is Section 195 at 20% (plus surcharge and cess). Whether a treaty rate is available depends on the specific treaty — for many countries the lower dividend rate is written only for companies holding a large stake in the Indian payer, which means individual portfolio investors stay at the domestic rate.
Where a lower individual rate does apply, you claim it with Form 10F and a Tax Residency Certificate lodged with the company or broker, and any quarter withheld at the higher rate before your paperwork was on file is reclaimed through your Indian return. Where no lower rate applies, the dividend still goes on your return, and the real relief sits on your home-country side as a foreign tax credit for the Indian tax already paid.
What changes because you live in Austria
Austrian residents are taxed on worldwide income, with investment income taxed at a flat 27.5% KESt and a credit for the Indian tax paid against it. The credit is limited to the Austrian tax on the same income, so a high Indian withholding above the KESt rate may not be fully recovered, which is why claiming the 10% treaty rate up front matters. Other income not covered by a specific article is taxable only in Austria, so India cannot reach it.
Frequently asked questions
Common questions from Austrian NRIs
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Dividend Tax sorted, by an Indian CA who works with Austrian NRIs
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