As an NRI, you do not lose your rights over Indian property. You can continue to hold, rent, or sell residential and commercial property in India freely. The only restriction is that NRIs cannot purchase agricultural land, plantation property, or farmhouses in India but existing ownership of any property type is fully protected.

You retain the property, maintain it, and return to it during visits to India. There are no tax implications simply from holding property as an NRI. The challenge is maintenance from a distance, most Indians in this situation arrange for a trusted family member or a property management service to oversee the property in their absence.

Renting out your Indian property as an NRI is a common and financially sensible choice, particularly for those with property in high-demand Indian cities. The income provides a rupee revenue stream while you live in Spain.

The key financial points to understand is rental income paid to an NRI is subject to 30% TDS (Tax Deducted at Source) in India, deducted by the tenant before paying you. The net rental income flows into your NRO account. You must declare this rental income in Spain as well- under the India-Spain DTAA, the tax paid in India is credited against your Spanish liability, so you will not be taxed twice on the same income, but the declaration obligation in Spain exists regardless.

Selling Indian property as an NRI is permitted, though the tax process requires careful handling.

For property held for more than 24 months, the gain is treated as long-term capital gain and is taxed at 20% with indexation, although recent changes have introduced alternative tax treatments in certain cases. For property held under 24 months, gains are treated as short-term and taxed at your applicable income tax slab rate.

The buyer is required to deduct TDS before paying you, usually around 20% for long-term gains, and higher for short-term gains. This TDS is not always your final tax liability, and you can file an income tax return in India to claim refunds if excess tax has been deducted.

Sale proceeds are credited to your NRO account. From there, you can repatriate up to USD 1 million per financial year (across all NRO remittances), subject to submitting a CA certificate along with Forms 15CA and 15CB. These documents confirm tax compliance before funds are transferred abroad. It is advisable to verify current tax rules and repatriation procedures with a CA experienced in NRI taxation before completing the transaction.