DoubleTaxationIndia – Spain tax treaty: residence, 183 days, rates
Agreement for avoidance of double taxation and prevention of fiscal evasion between India and Spain — Convention and Protocol signed at New Delhi on 8 February 1993
- Signed: 08/02/1993
- In force since: 12/01/1995
- Official text
If both countries treat you as resident
- Resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, resident of the State with which his personal and economic relations are closer (centre of vital interests). Art. 4(2)(a) India–Spain DTAA (1993)
- The Central Government may enter into agreements for relief from double taxation and avoidance of double taxation; where an agreement applies, the Act applies only to the extent more beneficial to the assessee (s. 159(4)). A non-resident may claim treaty relief only with a certificate of residence from the other country's government and the prescribed documents and information (s. 159(8)). Income-tax Act, 2025, s. 159
- If the centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, the individual is deemed a resident of the State in which he has an habitual abode. Art. 4(2)(b) India–Spain DTAA (1993)
- Habitual abode in both States or in neither — resident of the State of which he is a national; national of both States or of neither — the competent authorities settle the question by mutual agreement. Art. 4(2)(c)–(d) India–Spain DTAA (1993)
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. 16(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 183 days in the tax year. | Art. 7, Art. 15 |
| Pension | Only the country of residence. | Art. 19 |
| Government service | Usually only the paying country; exception: service in the other country by its national. | Art. 20 |
| Government service pension | Usually only the paying country; exception: service in the other country by its national. | Art. 20 |
| 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 15%; the country of residence relieves double taxation. | Art. 11(2) |
| Interest (deposits, bonds, loans) | Source country: at most 15%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 12(2)–(3) |
| Royalties (copyright, licences) | Source country: at most 20%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 13(2); Protocol para. 7 |
| Technical, consulting, management services | Source country: at most 20%; the country of residence relieves double taxation. | Art. 13(2)(ii), (4); Protocol para. 7 |
| Sale of property or shares | Real estate: the country where it is located may tax. Shares of companies deriving their value mainly (over 50%) from real estate: the same. Other property: under certain conditions the source country may also tax (see the article). | Art. 14 |
| Other income | The source country may tax; the country of residence relieves double taxation. | Art. 23(3) |
How double taxation is relieved
- Spain: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 25(3)–(5)
- India: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 25(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.