Golden Visa: Portugal or Spain? How to Make the Right Choice
The Golden Visa is not just an opportunity to gain residency but also a chance to invest wisely, ensuring tax benefits and capital protection for the entire family. It opens the door to citizenship and enhances your quality of life in a stable economy.
A Golden Visa is a unique opportunity for investors and their families to obtain a residence permit or citizenship through investments in various countries worldwide, including Europe, the Caribbean, and the UAE. These programs offer access to new markets and tax benefits while significantly expanding global mobility options. The choice of country depends on your goals: citizenship acquisition, tax planning, or investments in real estate and business.
The Golden Visa programs of Portugal and Spain attract investors with favorable conditions and a high quality of life. These countries stand out among other European options due to their low investment thresholds, the prospect of acquiring EU citizenship, and developed real estate markets.
Despite their similarities, the programs have significant differences that can greatly affect your investment goals. Understanding these distinctions is crucial for making an informed decision that suits your personal circumstances and long-term plans.
Main Requirements for the Golden Visa
Portugal:
Portugal's Golden Visa program remains one of the most popular in Europe due to its flexible conditions and multiple investment options.
Minimum Investments:
- Investment in funds: From €500,000 in approved closed-end Portuguese investment funds controlled by the Securities Commission, covering sectors like green energy, agriculture, hospitality, AI, and sports.
- Business creation: From €500,000, with a commitment to creating at least five jobs.
- Donation to heritage funds: From €200,000 to support cultural and scientific projects.
Residency Requirements:
- In the first year, the investor must spend at least 7 days in Portugal.
- In subsequent two-year periods: At least 14 days per period.
Time to Citizenship:
- After 5 years, you can apply for citizenship if all conditions are met, including passing a Portuguese language exam at level A2.
Family Eligibility:
- The Golden Visa covers immediate family members:
- Spouse.
- Children under 18.
- Children aged 18-24 if financially dependent, unmarried, without children, and continuing their studies.
- Parents of the applicant or spouse over 65, financially dependent.
For the most up-to-date information on Portugal’s Golden Visa requirements and application process, visit the officialprogram website.
Spain:
Spain offers standard conditions for obtaining a Golden Visa through investments in real estate or other assets.
Minimum Investments:
- Government bonds: €2,000,000.
- Bank deposit: €1,000,000.
- Shares in Spanish companies: €1,000,000.
Residency Requirements:
- Spain has no mandatory residency requirements for visa renewal. However, to apply for citizenship, you must live in the country for at least 10 years.
Time to Citizenship:
- After 10 years of residence in Spain, you can apply for citizenship.
Family Eligibility:
- Includes spouses, children, parents, and dependents.
Key Comparison of Requirements:
| Parameter | Portugal | Spain |
|---|---|---|
Minimum Investments | €200,000 - €500,000 (funds, business, cultural projects) | Government bonds: €2,000,000 |
Other Investment Options | Innovation, cultural heritage, funds | Government bonds, bank deposits, shares |
Residency Requirement | 7 days in the first year, 14 days every two years | No mandatory residency for visa renewal |
Time to Citizenship | 5 years | 10 years |
Citizenship Process and Timelines
Portugal:
Portugal offers one of the fastest paths to EU citizenship. After 5 years of residence under the Golden Visa, investors can apply for citizenship. Key requirements include:
- Maintaining resident status, meaning meeting the minimum stay requirements (7 days in the first year and 14 days in each subsequent two-year period).
- Basic knowledge of the Portuguese language, confirmed by passing an A2 level exam. This exam includes written and oral tasks and assesses everyday communication skills.
- A clean criminal record and payment of all taxes in Portugal during residency.
The process of applying for citizenship includes several stages: gathering documentation, confirming legal residence, passing the language exam, and submitting the application for review. Once submitted, the citizenship application is typically processed within 24-29 months.
Spain:
Spain requires investors to reside in the country for 10 years before applying for citizenship. The main conditions include:
- Actual residence in Spain for the majority of the ten-year period. This means active presence in the country is required for citizenship, unlike in Portugal where stay requirements are minimal.
- Spain’s program requires passing language exams in three stages:
- Spanish language test at A2 level (grammar, vocabulary, writing),
- Knowledge of culture and society,
- Knowledge of the Spanish legal system.
- Maintaining a good tax history and avoiding criminal offenses are also important conditions.
Thus, the citizenship process in Spain is longer, and investors must be prepared to reside in the country for a decade.
Taxation and Economic Benefits
The tax system is one of the key factors to consider when choosing a country for a Golden Visa. Taxes can significantly affect income from investments and the cost of owning real estate and other assets. Portugal and Spain offer different tax regimes, making them more or less attractive for certain categories of investors.
Portugal:
As of January 1, 2024, the Non-Habitual Resident (NHR) program, which provided tax benefits to new residents, was abolished. This has introduced significant changes to tax optimization for foreign investors. Now, all Portuguese tax residents must pay taxes on their worldwide income.
Key features of Portugal’s tax system after the abolition of NHR:
- Taxation of worldwide income: All Portuguese residents are now required to pay taxes on income earned both inside and outside the country. This means that investors planning long-term residence in Portugal must consider taxation on all their income sources under a progressive tax rate, which can reach up to 48% depending on income levels (source).
- No inheritance or gift tax: Portugal still does not impose inheritance or gift taxes for direct relatives, making it an attractive country for long-term financial planning and transferring assets to the next generation.
- Capital gains tax: Capital gains are taxed at a rate of 28% if obtained from the sale of Portuguese assets. However, depending on the structure of the investment, there are ways to reduce tax liabilities, such as through structured real estate transactions.
- Corporate taxes: For those planning to start a business in Portugal, the main corporate tax rate is 21%. For startups and companies working in innovation and technology, various incentives exist, making Portugal attractive for business (source).
Spain:
Spain’s tax system is stricter and includes the taxation of both local and foreign income. Key features of Spain’s tax system:
- Progressive tax scale: Personal income taxes range from 19% to 47%, depending on the income level. Taxes are levied on both local and global income. This means that investors with global income sources must account for high tax rates on worldwide income.
- Capital gains tax: Capital gains are taxed at rates ranging from 19% to 23%, depending on the amount of profit. This applies to both the sale of real estate and other assets such as stocks and bonds. Unlike in Portugal, Spain imposes capital gains taxes on both local and foreign assets, making it less attractive for globally-focused investors.
- Inheritance and gift tax: Spain imposes inheritance and gift taxes, with rates varying by region and degree of kinship. In some regions, inheritance tax rates can reach up to 34%, making it more complicated to transfer assets to the next generation without significant tax losses.
- Property taxes: Spain imposes a property tax that ranges from 0.4% to 1.1% depending on the region and property value. This makes owning real estate in Spain more expensive compared to other countries like Portugal. These taxes include both local and regional fees, increasing the tax burden on property owners.
- Corporate taxes: Spain’s main corporate tax rate is 25%. There are also a number of regional and sectoral taxes that can increase the tax burden for companies. Unlike in Portugal, Spain offers fewer incentives for startups and innovative companies.
Sourses:
Real Estate: Comparison of Portugal and Spain
One of the key factors when choosing a country for a Golden Visa is the real estate market. Investors often view property investment as a way not only to obtain residency but also to secure a stable rental income or long-term asset appreciation. Both Portugal and Spain offer various opportunities for purchasing real estate, each with its own unique features and advantages.
Portugal:
The Portuguese real estate market remains accessible to foreign investors, offering lower prices, especially in regions outside major cities. Even in Lisbon and other large cities, property tends to be more affordable than in comparable Spanish cities.
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Lisbon:
In Lisbon, the capital of Portugal, the average price per square meter ranges from €3,500 to €5,000, depending on the district. In central areas like Baixa and Chiado, prices can reach up to €6,000 per square meter. For example, a 90-square-meter apartment in central Lisbon with a view of the Tagus River may cost around €550,000.
Example of property in Lisbon for €550,000
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Algarve:
The Algarve coast is also popular among foreign buyers, offering average prices of €3,000 to €4,500 per square meter. This is attractive for those seeking seaside properties. For instance, a 200-square-meter villa in Albufeira, near the beach, might cost €450,000.
Example of a villa in the Algarve for €450,000
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Porto and Other Regions:
Property prices in Porto, Portugal’s second-largest city, range from €2,500 to €4,000 per square meter. Regions like Braga and Coimbra are even more affordable, with prices around €2,000 to €3,000 per square meter. For example, a 100-square-meter apartment in Porto can be purchased for €350,000.
Example of property in Porto for €350,000
Investment Thresholds for the Golden Visa:
Portugal offers various thresholds for participating in the Golden Visa program. The minimum investment in real estate is €500,000, allowing investors to choose from luxury properties or more affordable options while securing a path to residency.
Spain:
Spain has a more diverse real estate market, with higher prices, especially in major cities and coastal areas. Madrid and Barcelona are the country’s most expensive markets, but Spain offers a wide range of luxury properties, especially for those interested in resort areas.
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Madrid:
In Madrid, the capital of Spain, the average property price ranges from €4,500 to €8,000 per square meter, depending on the district. In prestigious areas like Salamanca or Chamberí, prices can reach up to €10,000 per square meter. For example, a 100-square-meter apartment in central Madrid may cost around €800,000.
Example of an apartment in Madrid for €800,000
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Barcelona:
Barcelona remains attractive to foreign investors, offering properties priced between €5,000 and €8,000 per square meter in central districts. Prices are higher in areas with sea views. For example, a 120-square-meter apartment with a view of Barceloneta Beach may cost €950,000.
Example of an apartment in Barcelona for €950,000
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Costa del Sol and Costa Brava:
Resort areas like Costa del Sol and Costa Brava are also popular among foreign investors. Prices here range from €3,500 to €6,000 per square meter, depending on proximity to the coast. A 250-square-meter villa on Costa del Sol might cost around €1,000,000.
Example of a villa on Costa del Sol for €1,000,000
Investment Thresholds for the Golden Visa:
To participate in Spain’s Golden Visa program, the minimum investment in real estate is €500,000, making the threshold higher than Portugal’s program. However, this allows investors to acquire property in any region of Spain, including resorts and major cities.
Comparative Table:
| Parameter | Portugal | Spain |
|---|---|---|
Average Property Price (Lisbon/Madrid) | €3,500 – €5,000 per m² | €4,500 – €8,000 per m² |
Prestigious Districts | Baixa, Cascais (€6,000 per m²) | Salamanca, Chamberí (up to €10,000 per m²) |
Resort Areas | Algarve (€3,000 – €4,500 per m²) | Costa del Sol (€3,500 – €6,000 per m²) |
Minimum Investment for Golden Visa | €200,000 – €500,000 | €500,000 |
Example Property (100 m²) | Lisbon, €550,000 | Madrid, €800,000 |
Portugal offers more affordable property prices, especially in regions outside major cities, as well as flexible investment thresholds for the Golden Visa. In contrast, Spain has higher property prices in Madrid, Barcelona, and resort areas, with a fixed minimum investment of €500,000 for the Golden Visa program.
Sources:
Cost of Living Comparison: Portugal vs. Spain
When it comes to the cost of living, Portugal and Spain each have distinctive features. Overall, Portugal is slightly more affordable than Spain, particularly for everyday expenses. However, differences in costs may vary depending on where exactly you plan to live in these countries.
Housing and Rent:
Housing prices play a crucial role in the overall cost of living. On average, rent in Spain is slightly cheaper than in Portugal. For example, renting an 85-square-meter apartment in a prestigious area in Portugal costs around €1,424 per month, while in Spain it costs €1,441, which is nearly the same. Meanwhile, renting a standard apartment in Portugal may cost €1,005, while in Spain it is €983, making Spain slightly more affordable for housing.
Food and Dining:
Food and restaurant prices also differ between the two countries. In Portugal, dining out is cheaper: a mid-range dinner for two costs about €40, while in Spain the same meal costs around €50.
At the same time, the cost of groceries such as meat, dairy, and vegetables is also somewhat lower in Portugal. For example, 500 grams of cheese in Portugal costs about €5, while in Spain it is about €7.
Utilities and Internet:
Utilities, including electricity, gas, and water, are slightly more expensive in Portugal. On average, utilities for an 85-square-meter apartment cost around €131 per month in Portugal,
This is due to higher energy costs in Portugal. However, internet and mobile services are similar in cost in both countries.
Overall Expenses:
According to data, the average cost of living in Portugal is 5-7% lower than in Spain. In Portugal, average monthly expenses for one person are about €1,286, while in Spain, they amount to about €1,383.
The differences in the cost of living are particularly noticeable in major cities like Lisbon and Madrid, where prices for housing, food, and transportation are higher compared to smaller cities.
| Category | Portugal | Spain |
|---|---|---|
Rent (85 m², city center) | €1,424 | €1,441 |
Groceries (monthly) | 5-7% cheaper | 5-7% more expensive |
Utilities | €131 | €117 |
Dinner for two in a restaurant | €40 | €50 |
Average Cost of Living | €1,286 per month | €1,383 per month |
Thus, Portugal remains a slightly more affordable country to live in, especially in terms of daily expenses like food and dining. Spain, on the other hand, offers cheaper rent in most regions, except for major cities.
Expatistan, cost of living comparisons
Visa and Mobility
One of the key advantages of the Golden Visa programs in Portugal and Spain is the ability to move freely within the Schengen Zone. Both countries offer residents visa-free entry to 26 European countries, making their programs particularly attractive for global investors and travelers.
Portugal:
Portugal’s Golden Visa grants holders access to visa-free travel across the Schengen Zone for up to 90 days within every 180-day period. This is particularly convenient for investors who do not plan to live in the country full-time but want the freedom to travel across Europe for business meetings, leisure, or other purposes.
An additional benefit of the Portuguese visa is the ability to apply for long-term visas to the United States and the United Kingdom. Portugal has agreements with these countries, allowing residents to apply for long-term visas, simplifying the application process (source).
Spain:
Spain’s Golden Visa program also allows visa-free travel across the Schengen Zone for up to 90 days in every 180-day period. This is a standard condition for most European residency-by-investment programs.
However, unlike Portugal, Spain does not offer additional benefits for obtaining long-term visas to the United States or the United Kingdom. This makes Portugal’s program more appealing for those seeking global mobility beyond Europe (source).
Visa Mobility Comparison:
| Country | Schengen Visa-Free Access | Long-Term Visas (USA) |
|---|---|---|
Portugal | 26 Schengen countries | Available |
Spain | 26 Schengen countries | Not available |
Long-Term Outlook
When choosing a country for a Golden Visa, it is important to consider long-term factors such as the path to citizenship, tax implications, quality of life, and economic stability.
Portugal:
Portugal remains one of the most attractive countries for long-term investors due to its flexible citizenship conditions. After 5 years of holding the Golden Visa, investors can apply for citizenship with minimal residency requirements: 7 days in the first year and 14 days every two subsequent years. This timeline is one of the shortest among EU countries offering Golden Visa programs. Once citizenship is granted, the Portuguese passport allows visa-free travel to 187 countries, including the EU, USA, and Canada, significantly enhancing global mobility (source).
With the termination of the Non-Habitual Resident (NHR) program as of January 1, 2024, Portugal’s tax system now requires residents to pay taxes on their worldwide income. Despite this change, Portugal remains attractive to investors due to the absence of inheritance and gift taxes for direct relatives, making it particularly advantageous for long-term investments and asset transfer planning (source).
Spain:
Spain requires a longer period of residency before investors can apply for citizenship—10 years. This makes it less flexible for those looking to quickly obtain an EU passport. However, for those who plan to reside in Spain long-term and actively participate in the country’s economy, the program remains a reliable option. The Spanish passport provides access to 194 countries, making it one of the most powerful passports globally in terms of mobility (source).
In Spain, as in Portugal, residents’ worldwide income is taxed. However, Spain’s high standard of living, developed infrastructure, and access to prestigious real estate make it a preferred choice for those who value social and economic advantages (source).
Key Long-Term Factors Comparison:
| Parameter | Portugal | Spain |
|---|---|---|
Time to Citizenship | 5 years | 10 years |
Residency Requirements | Minimal (7 days in the first year, 14 days every two years) | No mandatory residency for visa renewal |
Mobility After Citizenship | 187 countries (including EU, USA, Canada) | 194 countries (including EU, USA, Canada) |
Portugal offers a shorter timeline to citizenship and greater mobility, making it attractive for long-term investors. Spain, despite the longer path to citizenship, offers a prestigious passport and a high standard of living, making it a competitive option for long-term residence.
Choosing between the Golden Visa programs of Portugal and Spain is a significant decision that can greatly impact your family’s future. Both countries offer unique advantages and opportunities for investors seeking European residency and potential citizenship.
Portugal stands out with its faster path to citizenship, minimal residency requirements, and favorable tax incentives. This country is ideal for those who value flexibility and aim for maximum global mobility in the shortest possible time.
Spain, on the other hand, offers access to one of Europe’s largest real estate markets, a high quality of life, and rich culture. Despite the longer path to citizenship, this program may be perfect for those who plan to live and conduct business in the country on a permanent basis.
Regardless of the country you choose, Golden Visa programs open doors to new opportunities, offering access to the European market, a high standard of living, and expanded global mobility.
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