EU member-state tax residency + first-year filing (Portugal IFICI / Spain Beckham / Italy impatriati / NL 30%-ruling) — multi-country

You are advising [CLIENT_NAME] on tax residency and first-year filing in [TARGET_EU_COUNTRY], having arrived [ARRIVAL_DATE], on [EMPLOYMENT_PROFILE], with [INDIA_SOURCE_INCOME] and None, earning [EU_GROSS_INCOME] in target country. Each EU member state has its own tax-residency test, inbound regime (if any), and treaty position with India. Calibrate to country.

UNIVERSAL EU CONTEXT
- Most EU member states use 183-day physical presence + permanent home + centre-of-vital-interests test (broadly aligned with OECD Model Tax Convention)
- Worldwide taxation applies once tax-resident in most EU states (except UK pre-Brexit non-dom; Malta + Cyprus offer non-dom regimes; Portugal post-NHR is now standard)
- India-EU tax treaty (DTAA) — each EU member state has a bilateral DTAA with India; tie-breaker rules in Article 4 typically allocate residence
- Indian Income Tax Act 1961 s.6 — Indian resident if 182+ days in India or 60+ days + 365 days in prior 4 years
- DTAA tie-breaker: permanent home → centre of vital interests → habitual abode → nationality → mutual agreement

§1 — IF [TARGET_EU_COUNTRY] IS "Portugal"

LEGAL BASIS: Código do IRS (Decreto-Lei n.º 442-A/88); Lei n.º 82/2023 (IFICI introduction).

TAX-RESIDENCY TEST:
- 183+ days in Portugal in calendar year; OR
- Habitual abode in Portugal on 31 December (permanent home + intention to occupy as habitual residence)

TAX RATES (residents — 2026 levels; verify):
- IRS progressive: 13.25% (€0-€7,703) to 48% (over €81,199); plus solidarity surcharge 2.5-5% on income > €80k
- Capital gains: typically 28% (with options to integrate)
- Dividends: 28% withholding

INBOUND REGIME — IFICI (Incentivo Fiscal à Investigação Científica e Inovação):
- Replaced NHR October 2024
- Eligibility (narrow):
  - Scientific researchers (PhD-track positions)
  - Highly-qualified professionals in eligible sectors (technology, innovation, R&D)
  - Foreign-pension holders NOT covered (NHR's largest beneficiary group excluded under IFICI)
  - Specific occupations listed by Portaria — verify current list
- Benefits:
  - 20% flat rate on Portuguese-source employment / self-employment income (vs. progressive up to 48%)
  - Specific exemptions on foreign-source professional income
  - Foreign pensions NO longer exempt (under NHR, pensions taxed at 10%; under IFICI, fully taxed progressive)
- Duration: 10 years
- Application: register at Finanças within March 31 of year after becoming Portuguese resident

NHR LEGACY:
- Pre-31-Dec-2023 NHR registrants continue under NHR for full 10 years from their start date
- 20% on Portuguese-source qualifying professional income
- 10% on foreign pensions
- Various foreign-source exemptions (subject to DTAA + source-state taxation)
- If [CLIENT_NAME] arrived in 2023 or earlier and registered: NHR still applies

INDIA DTAA (1998):
- Tie-breaker: permanent home → centre of vital interests
- Indian rental income: taxed in India (situs); Portugal grants credit
- Indian dividends: 15% withholding India + Portuguese tax with credit
- Indian salary if continuing for Indian employer: complex — typically Portugal taxes if work done in Portugal

FIRST-YEAR FILING:
- Tax year = calendar year
- IRS return: Modelo 3 — file April-June following year via Portal das Finanças
- Bring: NIF, IBAN, all income statements, India-source declarations
- First-year option: split-year treatment available — taxed only on Portugal-source from arrival date

§2 — IF [TARGET_EU_COUNTRY] IS "Spain"

LEGAL BASIS: Ley 35/2006 (IRPF — Ley del Impuesto sobre la Renta de las Personas Físicas); Real Decreto 439/2007.

TAX-RESIDENCY TEST:
- 183+ days in Spain (consecutive or not) in calendar year; OR
- Main centre of economic interests in Spain (where main income / assets / activities sit); OR
- Spouse + minor children habitually reside in Spain (presumption)

TAX RATES (residents — 2026 levels; verify):
- IRPF progressive: 19% (€0-€12,450) to 47% (over €300,000); plus regional surcharges (Madrid lower; Catalonia higher)
- Savings income (interest, dividends, gains): 19%-28% scaled
- Wealth tax (Impuesto sobre el Patrimonio): applies in Catalonia, Aragón, Asturias, Balearic, Cantabria, Galicia, Murcia, La Rioja, Valencia (not Madrid since exemption); €700k base exemption; 0.2-3.5% rates
- Solidarity wealth tax (Impuesto Temporal de Solidaridad de las Grandes Fortunas) — 1.7-3.5% on wealth > €3M; targets large-wealth Madrid residents who escape regional wealth tax

INBOUND REGIME — BECKHAM LAW (Régimen Especial de Impatriados, Art. 93 LIRPF):
- Eligibility:
  - Employee with target-country employment contract (or director with <25% stake)
  - Not Spanish resident in past 5 years (changed from 10 to 5 in 2023 reform)
  - Cause of move to Spain = employment OR posting OR digital nomad visa
  - Income/assets thresholds: no formal cap but employment income > €600k subject to higher 47% rate
- Benefits:
  - Flat 24% rate on Spanish-source employment income up to €600,000
  - 47% on employment income > €600,000
  - Foreign-source income (other than employment) NOT taxed in Spain (treated as non-resident)
  - No wealth tax on foreign assets
- Duration: year of arrival + 5 years (6 years total)
- Application: Modelo 149 within 6 months of registering with Spanish Social Security

2023 REFORM ADDITIONS:
- Now extended to: digital nomads (entrepreneurs working remotely for foreign employers), highly-qualified professionals certified by SEPE, scientific researchers, family members (spouse + children under 25)
- Lower minimum-stake threshold for self-employed founders

INDIA DTAA (1995):
- Tie-breaker: permanent home → centre of vital interests
- Indian rental: taxed in India; Spain (under Beckham) does NOT tax foreign-source; under regular regime, Spain taxes with credit
- Indian dividends: 15% withholding India + Spanish tax (Beckham exempt foreign-source; regular regime credit)
- Indian salary: complex

FIRST-YEAR FILING:
- Tax year = calendar year
- IRPF return: Modelo 100 — file April-June via AEAT portal
- Wealth tax: Modelo 714 — same window
- For Beckham regime: Modelo 151 — separate

§3 — IF [TARGET_EU_COUNTRY] IS "Italy"

LEGAL BASIS: D.P.R. 917/1986 (TUIR — Testo Unico delle Imposte sui Redditi); Legge 207/2023 (2024 impatriati reform).

TAX-RESIDENCY TEST:
- Registered with anagrafe della popolazione residente for majority of tax year; OR
- Domicile in Italy (place of main interests); OR
- Habitual residence in Italy
- Tax year = calendar year

TAX RATES (residents — 2026 levels; verify):
- IRPEF progressive: 23% (€0-€28,000) to 43% (over €50,000); plus regional + municipal addizionali
- Capital gains: 26%
- Dividends: 26%

INBOUND REGIME — LAVORATORI IMPATRIATI (2024 REFORM, Legge 207/2023):
- TIGHTER than pre-2024 regime
- Eligibility:
  - Employed (or assimilated) — must work mainly in Italy
  - Not Italian-resident in past 3 years (or 6 years if working for same group)
  - Income cap: €600,000 per year benefit
  - Family + minor-child requirement for full benefit
- Benefits:
  - 50% of Italian-source employment / self-employment income EXEMPT from IRPEF (down from 70%/90% pre-2024)
  - 60% exempt if relocating to South (Mezzogiorno) regions
  - 60% if relocating with minor children
- Duration: 5 years extendable to 10 with home purchase / new child birth in Italy
- Application: declare in tax return; certain employer-attestations required

REGIME FORFETTARIO (self-employed / freelance):
- 5% flat rate on lump-sum income for newly self-employed (turnover < €85,000)
- 15% standard regime forfettario
- Useful for freelancing Indian-professionals (consultants, designers)

NON-DOM HNW REGIME (Article 24-bis TUIR):
- Flat €100,000/year tax on foreign-source income for HNW newcomers (raised from €100k to €200k in some 2024 proposals — verify)
- Plus €25k per family member
- Eligibility: not Italian-resident in past 9 of 10 years
- Duration: 15 years
- Useful for HNW [CLIENT_NAME] with significant India-source rental + business income

INDIA DTAA (1995):
- Tie-breaker: permanent home → centre of vital interests
- Indian rental income: taxed in India; Italy grants credit (no Italian tax under non-dom HNW regime if elected)
- Indian dividends: 15% withholding India; Italian tax 26% with credit

FIRST-YEAR FILING:
- Modello Redditi PF — file September-November following year via Agenzia delle Entrate online or via commercialista
- 730 form alternative for employees (simpler)

§4 — IF [TARGET_EU_COUNTRY] IS "Netherlands"

LEGAL BASIS: Wet inkomstenbelasting 2001; Wet op de loonbelasting 1964.

TAX-RESIDENCY TEST:
- Where you "really live" — combination of: family + permanent home + social ties + economic interests
- BSN registration in BRP relevant but not decisive

TAX RATES (residents — 2026 levels; verify):
- Box 1 (income from work + own home): 36.97% (€0-€38,098); 36.97% (€38,098-€75,518); 49.5% (over €75,518) — note Netherlands has compressed 2-bracket since 2020 reform
- Box 2 (substantial interest in companies): 24.5%-33% scaled
- Box 3 (savings + investments): notional yield × 36% — fiercely contested; reformed 2023+

INBOUND REGIME — 30%-RULING (now phase-down under 2024 reform):
- Eligibility:
  - Inbound knowledge worker (Highly Skilled Migrant or comparable)
  - Specific expertise scarce in Dutch labour market
  - Minimum salary thresholds (2024: €46,107 for general; €35,048 for under-30 with master's; €70,178 for "non-scientific researcher" cap)
  - Recruited from abroad (lived > 150 km from Dutch border for 16+ months of past 2 years)
- Benefits:
  - 30% of gross salary tax-free (effectively reducing taxable income)
  - Foreign-source income exempt (partial non-resident status — eligible for "partial foreign taxpayer" election Box 2 + 3)
  - License-exchange driving licence (without test) — see eu-settlement-driver-license-conversion-by-country
- Duration: 5 years
- 2024 PHASE-DOWN: 30% first 20 months → 20% next 20 months → 10% final 20 months (under current reform proposal — verify)
- Application: jointly with employer to Belastingdienst within 4 months of start

EXISTING 30%-RULERS:
- If you started 30%-ruling before 2024 reform took effect: grandfathered under full 30%

INDIA DTAA (1988):
- Tie-breaker
- Indian rental: India taxes; Netherlands grants credit (or full exemption under partial-non-resident election)

FIRST-YEAR FILING:
- Tax year = calendar year
- Aangifte inkomstenbelasting — file April 1 to May 1 following year (or extension to October via tax adviser)
- Online via Mijn Belastingdienst with DigiD
- M-form for migration year (split-year filing)

§5 — IF [TARGET_EU_COUNTRY] IS "France"

LEGAL BASIS: CGI (Code général des impôts) Art. 4 B; Article 155 B CGI for impatriés.

TAX-RESIDENCY TEST:
- Permanent home in France; OR
- Principal place of stay (183+ days); OR
- Centre of economic interests; OR
- Principal professional activity in France

TAX RATES (residents — 2026 levels; verify):
- IR progressive: 0% (under €11,294); 11% (€11,294-€28,797); 30% (€28,797-€82,341); 41% (€82,341-€177,106); 45% (over €177,106)
- Plus CSG / CRDS: 9.7% of salary
- Wealth tax (IFI — Impôt sur la Fortune Immobilière): real-estate-only wealth tax; €1.3M base; 0.5-1.5%

INBOUND REGIME — IMPATRIÉS (Article 155 B CGI):
- Eligibility: inbound employee recruited from abroad within last 5 years
- Benefits:
  - Impatriation bonus / signing bonus EXEMPT (up to 30% of total remuneration)
  - Foreign-source professional / passive income partially exempt
  - Other foreign-source non-real-estate income exempt from IFI
- Duration: 8 years
- No formal application — declared in tax return

INDIA DTAA (1992):
- Tie-breaker
- Indian rental: India taxes; France grants credit

FIRST-YEAR FILING:
- Tax year = calendar year
- Déclaration via impots.gouv.fr — May-June following year
- First filing as French resident: declare arrival date + worldwide income from that date

§6 — IF [TARGET_EU_COUNTRY] IS "Belgium"

LEGAL BASIS: Code des impôts sur les revenus 1992; loi-programme 27 December 2021 (special tax regime).

TAX-RESIDENCY TEST:
- Domicile in Belgium (subjective + objective); OR
- Seat of wealth in Belgium (centre of economic interests)

TAX RATES (residents — 2026 levels; verify):
- Income tax progressive: 25% (€0-€15,000) to 50% (over €46,440)
- Plus municipal surcharge (centimes additionnels) ~7%

INBOUND REGIME — RIE/RNS (régime spécial d'imposition pour les contribuables impatriés / regime for inbound taxpayers and researchers, loi-programme 2021):
- Eligibility:
  - Inbound employee or researcher; specific salary thresholds (€75,000 employee; lower for researcher); not Belgian-resident in past 5 years
- Benefits:
  - 30% of gross remuneration tax-free up to €90,000 cap
  - Specific allowances (relocation costs etc.) free
- Duration: 5 years extendable 3 years
- Application via employer + Service public fédéral Finances

INDIA DTAA (1993):
- Tie-breaker
- Tax year = calendar year (federal); Brussels-Capital + Wallonia + Flanders have additional regional surcharges

FIRST-YEAR FILING:
- Declaration via Tax-on-Web — May-July following year

§7 — IF [TARGET_EU_COUNTRY] IS "Greece"

LEGAL BASIS: L 4172/2013 (Income Tax Code); L 4646/2019 (non-dom).

TAX-RESIDENCY: 183+ days; or centre of vital interests.

TAX RATES: 9%-44% progressive; 15% on capital + dividends.

NON-DOM REGIME (Article 5A IT Code):
- €100,000/year flat tax on foreign income
- 15-year duration
- €500,000 investment requirement in Greece within 3 years
- HNW only

RETIRED-NON-DOM (Article 5B):
- 7% flat tax on foreign pension income
- 15 years
- Useful for retired Indian pensioners (verify DTAA interaction with Indian pension)

§8 — IF [TARGET_EU_COUNTRY] IS "Austria"

LEGAL BASIS: Einkommensteuergesetz 1988.

TAX-RESIDENCY: residence or habitual abode (6+ months).

TAX RATES: 0% (under €11,693) to 55% (over €1M).

EXPAT INCENTIVES: limited compared to Italy / Spain / NL; specific provisions for researchers + university teaching staff.

§9 — INDIA-SIDE COMPLIANCE (universal — applies regardless of EU country)

ITR FILING:
- If [CLIENT_NAME] is no longer Indian resident under Indian s.6 (i.e. < 182 days in India in FY): file ITR-2 (non-resident) for Indian-source income only
- Disclose foreign income + assets per Schedule FA if return-resident
- If departing mid-year (June 2026 arrival): tax-year 2026-27 first 2.5 months Indian-resident (April-June) — file full residency for that period

FEMA COMPLIANCE:
- Resident → Non-resident status change requires:
  - Convert savings accounts to NRO within "reasonable period"
  - Notify banks within 30 days
  - Update PAN tax-residency
- LRS (Liberalised Remittance Scheme): now Non-resident; no LRS — TCS not applicable on outbound remittances from NRE; different rules for NRO

INDIAN ASSETS (None):
- Rental income from Indian property: taxed in India (situs rule); declare in DTAA-resident return + India return; credit in DTAA-resident country
- Indian mutual funds: redemption gains taxed in India; declare in EU country tax return with credit
- Indian bank deposit interest: 30% TDS for NRO (vs. 10% for NRE — verify); declare in EU country with credit
- Indian shares: long-term gains 10% (over ₹1L exemption); short-term 15%
- Goa / agricultural land: cannot acquire as NRI; can retain inherited

§10 — DTAA TIE-BREAKER ANALYSIS

For [CLIENT_NAME]:
- Step 1: Permanent home test — is the home in target country only? (If yes, target-country residency settled)
- Step 2: If permanent home in both: centre of vital interests — where do family + economic ties predominantly sit?
- Step 3: If still tied: habitual abode (more days)
- Step 4: If still tied: nationality
- Step 5: If still tied: competent-authority mutual agreement

For most settled Indian families in EU: permanent home + centre-of-vital-interests rests with EU country once spouse + children there + employment there.

§11 — FIRST-YEAR FILING CHECKLIST

[ ] Tax ID issued (NIF / NIE / Codice / BSN / NIR / NN / AFM / Meldezettel)
[ ] Inbound regime application within deadline (Beckham 6 months; 30%-ruling 4 months; impatriati declaration in first tax return; IFICI by March 31)
[ ] Bank account established + statements available
[ ] Indian-side: ITR filed for partial-year Indian residency
[ ] EU country: first tax return for partial-year EU residency
[ ] Foreign-asset disclosure (most EU countries: foreign accounts > €50k threshold; investments > similar threshold)
[ ] Foreign-tax credit claimed for Indian-source income taxes paid
[ ] DTAA tie-breaker analysis documented
[ ] Indian banks notified (within 30 days)
[ ] Indian NRO/NRE conversion underway
[ ] FBAR-equivalent disclosures (Modelo 720 Spain; INPS Italy foreign-asset; CFCRA Belgium; etc.)
[ ] Wealth-tax filing if applicable (Spain — Catalonia / Madrid exemption review)

§12 — RED FLAGS

[ ] Beckham 6-month application deadline missed: REGIME LOST FOREVER for this arrival
[ ] 30%-ruling 4-month deadline missed: lost — but possibly recoverable in narrow circumstances
[ ] IFICI deadline missed (March 31): lost
[ ] Indian DTAA tie-breaker resolved incorrectly: double taxation OR illegal under-taxation
[ ] Modelo 720 (Spain): non-disclosure of foreign assets carries severe penalties (€10k+ even on small omissions — though 2022 ECJ ruling tempered some)
[ ] Italian RW Quadro: foreign-asset disclosure required; non-compliance carries 0.5%-1.5% penalty on asset value
[ ] French DPAEF: foreign-bank-account disclosure mandatory; penalty €1,500/account/year
[ ] BSM (Bank-Secrecy Mandate) reporting in Belgium / Greece
[ ] India-side: continuing to file as Indian resident when no longer is — wastes Indian-tax payments
[ ] Forgetting India-source rental income disclosure in EU return: tax-evasion exposure (most EU countries have automatic exchange via OECD CRS)

End with: "DRAFT — for country-specific tax-adviser review + Indian CA review. Verify against current member-state tax-authority guidance (Portuguese AT; Spanish AEAT; Italian Agenzia delle Entrate; Dutch Belastingdienst; French DGFiP; Belgian SPF Finances; Greek AADE; Austrian Finanzministerium) and current India-target-country DTAA text before filing. Inbound regimes (IFICI Portugal post-2024; Beckham Spain post-2023; impatriati Italy post-Legge 207/2023; 30%-ruling Netherlands post-2024 phase-down) all under active reform — confirm current rules at application date. Modelo 720 Spain, RW Italy, and Belgian foreign-asset disclosures carry severe non-disclosure penalties. Not tax advice."