DoubleTaxationIndia – Germany tax treaty: residence, 183 days, rates
Agreement between the Republic of India and the Federal Republic of Germany for the avoidance of double taxation with respect to taxes on income and capital, signed at Bonn on 19 June 1995 (Notification S.O. 836(E), 29 November 1996)
- Signed: 19/06/1995
- In force since: 26/10/1996
- Official text
If both countries treat you as resident
- An individual resident of both States is deemed resident of the State in which he has a permanent home available to him; if he has one in both States, of the State with which his personal and economic relations are closer (centre of vital interests). Art. 4(2)(a) India–Germany Agreement
- If the State in which he has his centre of vital interests cannot be determined, or if he has no permanent home available to him in either State, he is deemed resident of the State in which he has an habitual abode. Art. 4(2)(b) India–Germany Agreement
- If he has an habitual abode in both States or in neither of them, he is deemed resident of the State of which he is a national; if he is a national of both States or of neither, the competent authorities settle the question by mutual agreement. Art. 4(2)(c)–(d) India–Germany Agreement
Income: who taxes it
| Income | Treaty rule | Article |
|---|---|---|
| Salary (employment) | The country where the work is done may tax it. Exempt if all apply: no more than 183 days in the tax year; the employer is not resident there; the pay is not borne by its permanent establishment there. | Art. 15(2) |
| Self-employment, business, services | Country of residence; the other country taxes profits of a permanent establishment (fixed base) there, or if your stay there reaches 120 days in the tax year. | Art. 7, Art. 14 |
| Pension | Only the country of residence. | Art. 18 |
| Government service | Usually only the paying country; exception: service in the other country by its national. | Art. 19 |
| Government service pension | Usually only the paying country; exception: service in the other country by its national. | Art. 19 |
| Rent from real estate | The country where the property is located may tax; the country of residence relieves double taxation. | Art. 6 |
| Dividends | Source country: at most 10%; the country of residence relieves double taxation. | Art. 10(2) |
| Interest (deposits, bonds, loans) | Source country: at most 10%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 11(2)–(3) |
| Royalties (copyright, licences) | Source country: at most 10%; the country of residence relieves double taxation. | Art. 12(2) |
| Technical, consulting, management services | Source country: at most 10%; the country of residence relieves double taxation. | Art. 12(2), (4) |
| Sale of property or shares | Real estate: the country where it is located may tax. Shares of companies deriving their value mainly from real estate: the same. Other property: under certain conditions the source country may also tax (see the article). | Art. 13 |
| Other income | Only the country of residence. | Art. 21 |
How double taxation is relieved
- Germany: exemption: the income is not taxed but counts towards the rate on other income (credit for dividends, interest, royalties, fees for technical services, gains on sale, director’s fees, performance income) Art. 23(1); Protocol para. 6
- India: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 23(2)
Data checked: 10/11/2026. A short summary for individuals; the full conditions, exceptions and protocols are in the treaty text. General information, not legal advice.