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Belgium NRIs · Rental Income Tax

Rental income tax for NRIs in Belgium

Renting out Indian property from Belgium means your tenant must deduct tax on the gross rent. Set it up right and reclaim the heavy over-deduction.

When you rent out Indian property while living in Belgium, the rent is taxed in India. Under the India-Belgium treaty, income from immovable property is taxable where the property sits (Article 6), so the rate doesn't drop for living abroad. Because you're a non-resident landlord, your tenant is legally required to deduct tax at source on the rent under Section 393(2) (Section 195 until 31 March 2026), at the 31.2% non-resident rate on the gross rent, not under the lighter resident-landlord rule. That deduction is heavier than your actual tax, because you get a 30% standard deduction when you file, so most of the gap comes back as a refund.
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India-Belgium key facts: rental income tax

Default non-resident TDS rate31.2%
What the treaty changes hereIt sets no lower rate on this income. What a treaty decides here is which country gets to tax it.
Treaty article / basisArticle 6, source-country taxation
Your TRC issuing authorityFPS 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 applies on top; the 4% cess is already included in this figure.

How it works on the India side

A tenant paying rent to an NRI landlord must deduct TDS under Section 393(2) (Section 195 until 31 March 2026), the provision for any payment to a non-resident, which means the tenant has to take a TAN, deduct each month on the gross rent, deposit it, file a quarterly Form 144 (the old Form 27Q) against your PAN, and issue you a TDS certificate. The common, costly mistake is the tenant using Section 194-IB, the 2% resident-landlord rule, which doesn't apply to a non-resident landlord and leaves both sides exposed.

The deduction on gross rent is more than you actually owe, because your taxable rental income is much smaller: a flat 30% standard deduction comes off under Section 24(a), and home-loan interest comes off too. When you file your return, the TDS the tenant deposited is set against your real liability and the excess is refunded, but only if the tenant's quarterly statement correctly reports it against your PAN, which is why setting the tenant up right from the start matters. If you'd rather not wait a year for that refund, a lower-deduction certificate on Form 128 under Section 395 (the old Form 13 under Section 197) can cut the monthly deduction at source instead.

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

Under Section 393(2), the successor to Section 195, because you're a non-resident landlord. The tenant has to take a TAN, deduct on the gross rent at the 31.2% non-resident rate, deposit it, file a quarterly Form 144 (the old Form 27Q) against your PAN and give you the TDS certificate. Section 194-IB, the 2% rule most tenants know (it was 5% until 1 October 2024), applies only to resident landlords and is the wrong provision for a non-resident.

Yes. The deduction is on the gross rent, but your taxable rental income is much smaller, because you get a flat 30% standard deduction under Section 24(a) plus any home-loan interest before tax is computed. The over-deducted amount comes back as a refund when you file your Indian return, provided the tenant's quarterly statement correctly reports the TDS against your PAN. Belgian NRIs who don't want to wait for that refund apply for a Form 128 certificate instead.

No. Income from immovable property is taxable where the property sits (Article 6), so Indian rent stays taxable in India regardless of where you live. Belgium may tax the same rent, with a credit for the Indian tax paid, though whether it does turns on remittance and residence-year rules the note below sets out. The treaty stops double taxation. The saving comes from the 30% standard deduction and reclaiming the over-deducted TDS, not from a lower treaty rate.

Go further

Read the full guide, or see your country's complete picture

NRI landlord: setting your tenant up for Section 195 TDSBelgium NRI tax guide: every income type and the rates that apply

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