Why now
- India–EFTA TEPA (Switzerland, Norway, Iceland, Liechtenstein) has been in force since 1 October 2025, with a commitment of USD 100 billion of investment in India over 15 years. See TEPA explained.
- India–EU FTA negotiations concluded on 27 January 2026; it still needs signature and approval and is expected to take effect in 2027. See what it means for businesses.
- GCCs: India now hosts about 2,117 global capability centres (Zinnov–nasscom, 2026), and more than 80 German companies alone run over 150 GCC units in India. See setting up a GCC.
- The Netherlands is Europe’s largest source of FDI into India (about USD 56.7 billion cumulatively to March 2026, per DPIIT data), ahead of the UK and Germany.
Tax treaty rates on payments from India
| Country | Dividends | Interest | Royalties | Technical fees |
|---|---|---|---|---|
| Germany | 10% | 10% | 10% | 10% |
| Netherlands | 10% | 10% | 10% | 10% |
| France | 10% | 10% / 15% | 10% | 10% |
| Switzerland | 10% | 10% | 10% | 10% |
| Sweden, Ireland, Norway | 10% | 10% | 10% | 10% |
| Belgium | 15% | 10% (bank loans) / 15% | 10% | 10% |
| Italy | 15% / 25% | 15% | 20% | 20% |
Source: PwC Worldwide Tax Summaries (reviewed May 2026). A protocol to the India–France treaty signed in February 2026 will change dividend rates once in force. Since the Supreme Court’s 2023 Nestlé ruling, “most-favoured-nation” clauses don’t lower rates automatically.
Social security
India has social security agreements in force with countries including Germany, the Netherlands, France, Switzerland, Belgium, Sweden, Austria, Denmark, Finland, Norway, Portugal and Luxembourg. Employees seconded to India can usually stay in their home scheme for a period with a certificate of coverage. The India–EU deal also commits to concluding agreements with all EU member states within five years.
How we help
- Indian subsidiary, LLP or branch — structure, incorporation, FDI reporting.
- Captive centres — cost-plus transfer pricing, GST on exported services, payroll.
- Monthly reporting to headquarters in your GAAP and currency — as a fractional CFO or Virtual CFO.
- Fund managers: GIFT City vehicles for India-focused funds.
Doing business in India from abroad?
Need anything done in India — checks, research, filings, tax or accounting? Your team on the ground in India.