Netherlands NRIs · Dividend Tax
Dividend tax on Indian shares for NRIs in Netherlands
Dividends from Indian companies are withheld at the non-resident rate before they reach you in Netherlands — here's the treaty position and how to reclaim any excess.
India-Netherlands key facts: dividend tax
| Default Section 195 rate | 20% |
| India-Netherlands DTAA treaty rate | 10% |
| Your saving via the treaty | 10% |
| Treaty article / basis | Article 10 — 10% flat rate on Indian-source dividends to resident beneficial owners (no shareholding sub-rate) |
| Your TRC issuing authority | Belastingdienst (Dutch Tax Authority) |
Rates reflect India's domestic Section 195 withholding and the India-Netherlands 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 Netherlands
For Dutch residents, Indian savings and investments fall in Box 3, which taxes a deemed (notional) return on the value of the assets rather than the actual Indian income they earned — effectively a wealth-style tax on the asset base. For 2026 the deemed return is applied at a flat rate after a per-person tax-free allowance, with the long-promised actual-return system not expected until 2028, so the mechanic remains in transition. Double-taxation relief still applies — the Netherlands grants a proportional reduction for the foreign (Indian) portion under the treaty — but because the Dutch charge is built on asset value rather than income, it won't simply mirror the Indian rate shown here.
Frequently asked questions
Common questions from Dutch NRIs
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Dividend Tax sorted, by an Indian CA who works with Dutch NRIs
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