NRI from Spain\nIndia Investment Guide

No — if you are an NRI (Section 6 residency tests not met), Spanish salary is exempt from Indian tax. Spain taxes salary via IRPF progressive 19-47% + autonomous community surcharges. India-Spain DTAA prevents double taxation. If you qualify for Beckham Law (skilled workers, employee status, first 6 years in Spain): FLAT 24% on Spanish income up to €600K. Only Indian-source income (NRO interest, rental, Indian capital gains) is taxable in India. NRO interest reducible via DTAA to 15% with TRC + Form 10F.

Beckham Law (Régimen Especial de Trabajadores Desplazados) — special tax regime for skilled workers relocating to Spain. BENEFITS: (1) FLAT 24% on Spanish income up to €600K (vs 19-47% progressive normal). (2) Foreign income NOT taxed for first 6 years (vs normal worldwide taxation). (3) Massive saving for high-earning tech workers — saves 15-20% effective tax vs normal regime. ELIGIBILITY: (1) Not Spanish tax resident in last 10 years. (2) Move to Spain for work contract (NOT self-employed/autónomo). (3) Apply WITHIN 6 MONTHS of arrival — strict deadline, no extensions. (4) Maintains employee status throughout. WHO BENEFITS MOST: tech professionals earning >€60K, executives relocated by multinational, professional sports. WHO DOESN'T: low-earners (Beckham 24% may be HIGHER than progressive starting 19%), self-employed, returning Spanish nationals. CRITICAL: apply within 6-month window via Modelo 149.

Modelo 720 — MANDATORY annual declaration of foreign assets held by Spanish tax residents. THRESHOLD: must declare if total in any of 3 categories EXCEEDS €50,000 on Dec 31: (1) Bank accounts (including Indian NRE/NRO). (2) Securities (Indian MFs, shares, life insurance). (3) Real estate (Indian property). EACH CATEGORY separately — even if total foreign assets €40K but bank accounts alone €51K, must file. DEADLINE: March 31 following year. PENALTIES: NON-DISCLOSURE: €10,000 MINIMUM (largest in EU). Additional 150% of unreported value as income tax penalty in some scenarios. EU Court of Justice (2022) ruled some penalties disproportionate — Spain revised partially but still strict. RECOMMENDATION: maintain detailed records of all Indian assets year-end values. File Modelo 720 every year you exceed thresholds. Use Spanish gestor (tax advisor) — DIY risk is too high given penalties.

Yes — Spain NRIs face no FATCA-equivalent burden. All Indian AMCs accept Spain NRI investments. KYC via Indian broker. CAVEATS: (1) Modelo 720 declaration if total Indian securities exceed €50K. (2) Capital gains on sale: Spain progressive 19-28% on financial CG, with credit for Indian taxes. (3) Wealth tax (Patrimonio): varies by autonomous region — Madrid effectively 0%, Catalonia 0.2-2.5% above €700K. Indian holdings count toward threshold. (4) Beckham Law beneficiaries: foreign-source income not taxed first 6 years — major advantage if you hold Indian assets. STRATEGY: high-net-worth Indians moving to Spain should consider Madrid residence + Beckham Law to minimize Spanish tax + Patrimonio.

Complex - generally NOT refundable. Spanish Seguridad Social pension contributions accumulate toward pensión de jubilación at age 67. Options when returning to India: (1) LEAVE contributions intact + claim monthly pension from age 67+ (Spain pays globally — wherever you reside). (2) BILATERAL AGREEMENT: India-Spain has limited social security agreement for specific cases. (3) Some categories may have refund options — verify via Seguridad Social portal. RECOMMENDATION: For most Indians returning after 5-15 years: leaving Seguridad Social contributions intact + receiving monthly pension post-67 in INR (or wherever reside) may be simpler. Apply via Tesorería de la Seguridad Social (Spanish social security treasury) for cross-border pension setup. If you used Beckham Law: Seguridad Social applies normally — Beckham Law only affects income tax, not social security.