Two Countries.
One Tax Life.
The Full
Picture.
You earn in euros. Your family is in India. You have investments, property, RSUs, and NRI obligations spanning two countries and two tax authorities. Here is the complete picture — what Spain taxes, what India taxes, and how the DTAA decides.
The most common mistake Indian IT professionals make in Barcelona is treating Spanish taxes and Indian taxes as two entirely separate problems — to be handled by a Spanish gestor and an Indian CA respectively, who never speak to each other. In reality, the India–Spain Double Taxation Avoidance Agreement (DTAA) creates a framework that links the two systems in ways that significantly affect your total tax burden.
This post covers the cross-border picture: what you need to file in each country, what gets taxed where, and the key areas where getting it wrong is expensive.
Your NRI Status: What It Is and Why It Changes Everything
The moment you spend fewer than 182 days in India in a financial year (April–March), you become a Non-Resident Indian (NRI) under India's Income Tax Act. For most Indian professionals who relocated to Barcelona mid-year, this NRI status kicks in from the financial year after your first full year abroad — but it can also apply from the year of departure depending on timing.
Many Indian professionals in Barcelona continue maintaining regular savings accounts in India long after becoming NRIs. Under FEMA (Foreign Exchange Management Act), this is a violation — you are legally required to convert your resident savings account to NRE (Non-Resident External) or NRO (Non-Resident Ordinary) status. The conversion process is simple: notify your bank with a copy of your passport and visa/residency permit. Most banks allow this by email or through their NRI services portal. Do this immediately if you haven't already.
The India–Spain DTAA: How Double Taxation Is Avoided
India and Spain have a Double Taxation Avoidance Agreement (DTAA) that determines which country has the primary right to tax each type of income. The DTAA was signed in 1993 and revised in recent years. Understanding which "Article" of the DTAA applies to your income type is the key to cross-border tax planning.
Under the Beckham Law, you are treated as a non-resident for Spanish income tax purposes — which means your foreign-sourced income (Indian salary, Indian interest, Indian capital gains) is generally not subject to Spanish tax. This is one of the most significant advantages of the Beckham regime for Indian professionals with India investments: you don't pay Spanish tax on income already taxed (or not taxed) in India. Under standard Spanish residency, your India income would be subject to Spanish tax with a credit for Indian tax paid.
What You File in Spain: Modelo 100, 151, and 720
What You File in India: ITR, NRI Rules, and When You Must File
As an NRI, you are taxed in India only on income sourced from India. Your Spanish salary is not taxable in India. But if you have income from Indian sources — rent, FD interest, dividends, capital gains from stocks or mutual funds — you may still have an Indian tax filing obligation.
NRE (Non-Resident External): holds foreign earnings (your Spanish salary) repatriated to India. Interest is tax-free in India. Freely repatriable. Both principal and interest can be transferred back to Spain without restriction. Best for parking savings from Barcelona.
NRO (Non-Resident Ordinary): holds Indian-sourced income — rent from property, dividends, pension. Interest is taxable in India at applicable rates. Repatriation limited to $1 million per year (per RBI rules) with CA certification.
You must file an ITR in India if: (a) your India-sourced income exceeds ₹2.5 lakh in the financial year, OR (b) you have capital gains from selling Indian assets (stocks, MFs, property) regardless of amount, OR (c) TDS has been deducted on Indian income and you want to claim a refund. Filing is also recommended even below the threshold if you have any India investments, to establish a record for future repatriation.
There is no limit on how much you can remit from Spain to India as an NRI. Money sent to your NRE account from your Spanish salary is freely allowed. You do not need to justify the source to Indian authorities as long as it comes from legitimate employment income and you use a regulated channel (Wise, bank transfer). Keep transfer records — your CA may need them if India-side income ever triggers an audit.
When you become an NRI, some investment vehicles become restricted or prohibited:
❌ Cannot make new PPF contributions (existing account can continue to maturity)
❌ Cannot open new NSC, Senior Citizen Savings Scheme, or Post Office schemes
❌ Cannot invest in certain government bonds designated for residents only
✓ Can continue investing in Indian stocks (through NRE/NRO linked demat account)
✓ Can invest in most Indian mutual funds (NRE/NRO based, subject to fund restrictions)
✓ Can hold existing investments until maturity or sell
RSUs Across Two Countries: The Most Complex Area
If you received RSU grants while working in India and they vest after you've moved to Spain (or vice versa), the cross-border treatment becomes complex. The fundamental principle is that RSU income is allocated proportionally between the two countries based on where you worked during the vesting period. This is called the "situs rule" and it applies regardless of DTAA.
If you were granted RSUs while working in India (pre-relocation) and they vest after you move to Spain, the taxable income is allocated based on days worked in each country during the vesting period.
India portion: taxable in India as employment income in the year of vesting (NRO account, subject to TDS). Spain portion: taxable in Spain as employment income in the year of vesting (at 24% under Beckham or progressive rate).
If the entire grant and vesting period occurs while you are working in Spain, the full vesting value is taxable in Spain as employment income. Under Beckham Law, this is at 24% flat. There is no India tax obligation on this income (it is not India-sourced under the DTAA).
This is the cleanest scenario — fully treated as Spanish employment income.
Many Indian IT professionals in Barcelona work for Spanish subsidiaries of US, UK, or other foreign companies and receive RSUs from the foreign parent company's equity plan. In this case, the country of the parent company's incorporation may also be a relevant tax jurisdiction — creating a potential three-way tax situation (India, Spain, and the parent company's country).
This requires specialist advice. Do not try to navigate this without a cross-border tax professional who is familiar with both Spain's Beckham regime and your parent company's jurisdiction.
For every RSU grant, keep: the grant date, the grant price, the vesting schedule, the number of shares vesting each date, the market price at each vesting date, and where you were working on each vesting date. Your gestor and Indian CA will need all of this. Most equity plan platforms (Carta, Morgan Stanley, E*Trade) provide annual vesting statements — download and store them every year.
The Annual Cross-Border Tax Checklist
Each tax year, you have obligations in both countries. Here is the complete annual checklist — timeline, forms, and who handles each.
You Need Two Professionals — and They Need to Talk to Each Other
Every Indian IT professional in Barcelona with India investments, RSUs, or property needs both a Spanish gestor experienced in Beckham Law and cross-border income, and an Indian CA familiar with NRI/DTAA matters. The key — and the part most people skip — is that both professionals need to know what the other has filed. The DTAA only works as a double taxation prevention tool if the filings in both countries are consistent. Ask your gestor and CA explicitly: "Are you coordinating on the DTAA treatment?" If neither knows the other exists, that's the first problem to fix.
Ask the community for gestor + India CA recommendations →Indian professionals who've navigated Spain + India tax are in the community.
DTAA questions, Modelo 720 experiences, NRE/NRO conversion, RSU cross-border treatment — people who've been through it are already in the Catalunyaar community.
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