Indian NRE Account Interest in Germany

How Germany taxes it

For German tax purposes, NRE interest is identical to any other foreign bank interest: taxed at your personal marginal rate, added to total income, declared on Anlage AUS. The fact that India exempts it as a Non-Resident Indian benefit is a domestic Indian policy choice; Germany taxes it the same as any other foreign-bank income.

DTAA treatment

DTAA Article 11 still applies, but because India hasn't actually withheld tax on NRE interest, there's no foreign tax to credit. You owe German tax on the full gross amount — there is no DTAA "exemption flow-through" for income that the source country chose not to tax.

Where it goes on your return

NRE interest goes on Anlage AUS line 11 with foreign tax paid = €0. The gross interest comes from your bank's annual interest certificate (request a calendar-year version, not the Indian FY default).

Common gotchas

• Many Indians wrongly believe NRE = "tax-free everywhere" — Germany does NOT recognise the Indian exemption, this is a common audit catch
• NRO interest IS subject to TDS (typically 30%) and works under DTAA normally — don't confuse the two account types
• If you also keep a resident savings account in India (savings + FD bundled), separate the interest figures by account type — Form 26AS shows TDS by deductor