Belgium NRIs · Dividend Tax

Dividend tax on Indian shares for NRIs in Belgium

Dividends from Indian companies are withheld at the non-resident rate before they reach you in Belgium. Here's the treaty position and how to reclaim any excess.

When an Indian company pays you a dividend while you live in Belgium, the company withholds tax at source before the money reaches you. India's default withholding on non-resident dividends is 20% under Section 393(2), the successor to Section 195. The India-Belgium treaty position is more favourable, capping the rate at 15% for individual residents, a real saving over the 20% default (Article 10). To claim it you need Form 41, the successor to Form 10F, and a Tax Residency Certificate on file with the company or your broker.

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India-Belgium key facts: dividend tax

Default non-resident TDS rate	20%
India-Belgium DTAA treaty rate	15%
Your saving via the treaty	5%
Treaty article / basis	Article 10: flat 15% treaty cap on Indian-source dividends
Your TRC issuing authority	FPS Finance / SPF Finances

Rates reflect India's domestic withholding under Section 393(2) (Section 195 until 31 March 2026) and the India-Belgium 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 20% under Section 393(2) (Section 195 until 31 March 2026), plus surcharge and cess, and Section 115A taxes those dividends at 20% of the gross amount with no expenses allowed. A lower rate only ever comes from a treaty, and only where that treaty writes one for individuals: several of India's treaties reserve the reduced dividend rate for companies holding a large stake in the Indian payer, and some countries have no treaty with India at all, so portfolio investors there stay at the domestic rate.

Where a lower individual rate does apply, you claim it with Form 41 (formerly Form 10F) and a Tax Residency Certificate lodged with the company or broker, and any dividend withheld at the higher rate before your paperwork was on file is reclaimed through your Indian return. Where no lower rate applies, the 20% is generally your final Indian tax, so the questions worth asking are whether the payer withheld more than the correct rate and surcharge, and whether the country you live in gives you a credit for that Indian tax.

What changes because you live in Belgium

Belgium won't hand back the Indian tax on your Indian dividends and interest. You declare that income net, after the Indian deduction, and Belgium then charges its flat 30% on what's left, so the two taxes stack instead of cancelling. The treaty does promise a credit, but Article 23(3)(b)(i) grants it only in accordance with the existing provisions of Belgian law, and Belgian law gives a private investor none. The famous exception is French dividends, and that rests on the France treaty's own wording, so don't let a Belgian forum thread convince you the same trick works here. Your share gains changed too. Since 1 January 2026 Belgium taxes gains on financial assets at 10% above a 10,000 euro yearly allowance, whether you hold them here or abroad, counting only the rise since their 31 December 2025 value. Indian property stays outside that one.

Frequently asked questions

Common questions from Belgian NRIs

India's default is 20% under Section 393(2), but the India-Belgium treaty caps it at 15% for individual residents, a saving of 5%. To get the lower rate you file Form 41 with a Tax Residency Certificate from FPS Finance / SPF Finances. Any excess withheld beforehand is reclaimed on your Indian return.

Yes. With Form 41 and a Tax Residency Certificate on file, the treaty rate of 15% applies instead of the 20% default, a 5% reduction. Dividends withheld at the higher rate before your paperwork was lodged are reclaimed when you file your Indian return.

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Dividend Tax sorted, by an Indian CA who works with Belgian NRIs

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