Spain Golden Visa: 15 benefits and 11 disadvantages of Spanish residence permit

The Spain Golden Visa is a program that allows non-EU investors to get a residence permit for 3 years, subject to extension.

Investments. Applicants choose between six options:

1. Buy real estate for €500,000;

2. Open a deposit in a Spanish bank with a minimum sum of €1,000,000;

3. Purchase shares of Spanish companies for €1,000,000;

4. Purchase units in investment funds for €1,000,000;

5. Purchase government bonds for €2,000,000;

6. Invest in a business — no minimum requirement.

Spain residence permit by investment

Savings. Applicants for Spanish residence by investment demonstrate their financial solvency. They must transfer to an account in a Spanish bank an amount equal to four times the annual minimum wage in Spain — 400% of IPREM.

In 2024, IPREM is €600 per month, or €7,200 per year. The investor’s account must have at least €28,800, with an additional €7,000 required for each family member.

Golden Visa pros. Alongside opportunities for permanent residence and citizenship, Spain Golden Visa benefits include the following:

1. Moving with the whole family.

2. Pathway to citizenship.

3. Creating a safe haven.

4. Visa-free travel.

5. No residing requirements.

6. Real estate option.

7. No language requirements.

8. Business opportunities.

9. Work opportunities.

10. Access to high quality education.

11. Access to high quality healthcare.

12. Tax benefits.

13. High quality of life.

14. Low cost of living.

15. Mild climate.

Golden Visa cons. Except for the high expenses, the cons of the Spain Golden Visa include investment risks, mandatory living in Spain for permanent residency, high waiting time for citizenship, renouncing the first passport to obtain Spain citizenship, strict Due Diligence, and high taxes.

1. Permanent residency and pathway to citizenship. The Spain Golden Visa allows its holders to become temporary residents and move to Spain.

After 5 years of living in the country, a resident becomes eligible for permanent residence, which is to be held for 5 years too. Then, investors can be granted a Spanish passport.

To qualify for Spanish citizenship, individuals must prove knowledge of the state language and culture. Visa-free access to the United Kingdom, the United States, Japan, Hong Kong, and other locations is one of the advantages of the Spanish passport.

Children born in Spain to foreigners with the Golden Visa become Spanish citizens after living in the country for just one year, making it an attractive benefit of the Spanish residency by investment.

2. Creating a safe haven. A residence permit allows its holders to visit Spain anytime, even if the borders are closed to tourists.

3. Freedom to travel within the Schengen Area. Spanish residents can visit 27 European countries without visas and can spend up to 90 days every six months there. The ease of travel not only saves time but also reduces administrative difficulties typically associated with cross-border movement.

4. Moving with the whole family. The spouse, unmarried children, and dependent parents can become residents of Spain together with the investor.

5. No residing requirements. Main applicants and their family members are not obligated to reside in Spain before or after obtaining residency by investment. It is necessary to visit the country only to extend the residence permit.

This flexibility offers advantages for global entrepreneurs who want to maintain their international lifestyle while benefiting from Spanish market opportunities.

6. Real estate option. Purchasing property provides investors with a solid, physical asset that can appreciate over time. Properties can be rented out to tourists or long-term tenants, providing an additional source of income while maintaining the residency status.

Spain’s real estate market, mostly in cities like Madrid, Barcelona, and coastal areas, has shown consistent growth, offering the potential for financial returns. 15% of all real estate is bought by foreigners. Most often, they purchase property in the Balearic Islands, Valencia, Murcia, Catalonia and Andalusia.

Examples of investment real estate in Spain

Spain, Palma de Mallorca

€360,000 — €420,000

Apartments in a new residential complex with a swimming pool

61 m²

2

2

Spain, Algorfa

€485,000 — €519,000

Modern villa near Golf club

119 m²

3

2

Spain, Benidorm

€340,000 — €650,000

Apartments and villas with sea and mountain view

73 m² — 230 m²

2—3

2—3

7. Business investment opportunities. A residence permit allows its holders to operate and manage their businesses in Spain without any additional work authorisation. Entrepreneurs are allowed to transfer their businesses from abroad.

Spain is ranked 2nd among 119 nations in the Travel & Tourism Development Index 2024, which reflects its strength as a global leader in tourism infrastructure and development. This ranking signifies that Spain excels in key areas such as tourism infrastructure, natural and cultural resources, travel accessibility, and the overall appeal of its destinations.

8. Working opportunities. A significant Spain Golden Visa benefit is having access to work anywhere within Spanish territory without any restrictions. This freedom lets residents choose any job across diverse sectors like technology, hospitality, the arts, and more.

9. Access to European healthcare. The whole family receives quality medical services in the clinics of the Schengen countries.

According to the Expat Insider 2024, Spain is ranked 4th among 53 countries as a popular healthcare destination. Spain offers both public and private healthcare options, with well-trained medical professionals and modern facilities.

Healthcare costs in Spain are generally lower than in many other Western European countries.

10. Access to European education. Investor’s children can study in an education system with several world-class universities and bilingual schools, both public and private, offering curriculum from different countries.

According to the QS World University Rankings 2025, 15 Spanish universities are among 500 best higher educational institutes worldwide. Institutions like University of Barcelona, the Complutense University of Madrid, and the University of Salamanca have a long history of excellence in research and innovation, attracting international students and offering a variety of programs in both Spanish and English.

11. No language requirements. Investors don’t have to prove their Spanish proficiency, provide diplomas, or demonstrate their business experience to invest and get a Golden Visa.

12. Tax benefits. Investors don’t need to become tax residents unless they live in Spain for over 183 days per year. They are only taxed on their income generated within Spain, making it appealing for those seeking a sunny retirement or second home destination.

Investors who spend more than 183 days per year become tax residents and pay taxes on a worldwide income.

Investors over 65 selling their primary residence are exempt from capital gains tax on the sale, regardless of whether they reinvest the proceeds.

The standard corporate tax rate in Spain is 25%. Newly created companies can benefit from a reduced tax rate of 15% for the first two years.

13. High quality of life. Spain ranks 1st among 53 countries in terms of quality of life, according to the Expat Insider 2024. Respondents emphasise they can openly express themselves and their views. Expats also enjoy their travel opportunities. The vast majority appreciates affordability and availability of public transportation and car infrastructure.

14. Low cost of living. In Spain, housing, groceries, and dining out are more affordable, compared to places like Paris or Berlin. Low cost of living is one of the benefits of Spanish residency.

The family of four needs around €2,500 per month without rent, while Switzerland requires €5,700, Denmark — €3,900, and the Netherlands — €3,400.

The cost for renting apartments in Spain is more or less the same as in Portugal, Italy, France, and is estimated at around €1,500 per month for three bedrooms in the city centre.

15. Mild climate. A warm Mediterranean climate dominates most parts of the region, providing pleasant temperatures throughout the entire year-round. Spain is a sunny country, with around 3,000 hours of sunshine every year.

High minimum investment thresholds. Spain has some of the highest investment expenses in comparison with other countries offering residency by investment.

The property value must be at least €500,000, while other investment options require even greater sums.

All investments are non-refundable within the Golden Visa validity until applicants want to maintain investment residency. This means that investors can’t sell any assets obtained without their residency permit being cancelled.

Investment risks. Bank deposits and business investments carry a certain amount of risk. Funds might get stuck if banks face insolvency or businesses go bankrupt because Spain, like the rest of the countries, isn’t immune to economic downturns.

Investors may come across fake agents promising guaranteed returns or speedy application processes. Immigrant Invest is a licensed agent that carries out Due Diligence checks to reduce the risk of rejection to 1%.

Termination might be sudden and unexpected. The Spanish government can end the Golden Visa program without warning.

Illegal seizure of the property. The villas owned by investors in Spain who do not rent them out are left vacant and are in danger of being taken over by squatters. They can also be a threat to landlords. Tenants can simply stop paying rent, and they are just as difficult to evict as the squatters who move in without the landlord’s knowledge.

If the homeowner tries to break into their own property by force, they may even be prosecuted. The tenants residing illegally in a property can only be evicted through a court order. The Spanish court often supports the squatter by referring to the law that every human being has the right to housing.

Strict Due Diligence check. The eligibility criteria for visa applicants often include stringent background checks and screening processes. Even minor offences might pose obstacles during application review by Spanish authorities. Investors might face delays during processing time, or the entire application can even be rejected outright.

Tax implications. If a foreigner spends more than 183 days per year within Spanish territory, they become a tax resident. Global income will be taxed by Spanish authorities.

When one decides to move tax residency away from Spain after being a tax resident for more than 10 years, the Spanish Tax Office might present residents with an exit bill. This applies if certain thresholds in asset value or capital gains are exceeded.

Igor Buglo,

Head of the Maltese office, MBA

If an investor obtains a Spanish Golden Visa and continues to live in their country of origin, they may be taxed on their global income twice: in Spain and their home country. Some clients have experienced this and were obliged to pay taxes in Spain after renewing their residence permit. The decision of the Spanish tax service then had to be challenged in court.

High taxes. For buying residential real estate in the primary market, the tax rate ranges from 7 to 12% of the transaction amount, rising up to 25% when buying commercial real estate. To compare, in Portugal, the property transfer tax is 0—8%.

Corporate tax in Spain is 25%, while it is 21% in Portugal, and 9% in Hungary.

Official inheritance and gift tax rates in Spain range from 7.65 to 34%. However, these tax rates have to be multiplied by kinship coefficients. A coefficient ranging from 1 to 1.2 is applied to an inheritance made to children, a spouse or parents, which can increase the tax rate to 40,8%.

If the inheritance is made to distant relatives, for example, a partner who was not officially married, the coefficient ranges from 2 to 2.4. In this case, for properties worth more than 4 million euros, such as villas on the ocean, the tax can reach 81,6%.

In neighbouring Portugal, inheritance and gift tax is levied at a flat rate of 10%, and if the inheritance is received by close relatives, such as a spouse, children, parents or grandchildren, the tax is not charged at all.

Political instability. An incoming government may not view foreign investments favourably or decide that the real estate market needs to decline due to high prices driven by overseas investors.

In times of unrest or uncertainty, property values can fluctuate wildly, plunging dramatically. This impacts those who chose the purchase of real estate as the path to a Spanish residence permit.

Mandatory living in Spain for permanent residency. Investors need to continuously live in Spain for at least 5 years as a residence permit holder to obtain permanent residency. They cannot leave Spain for more than 10 months in total during the entire period.

High waiting time for citizenship. It takes 10 years to become eligible for a Spanish passport. The applicant needs to live permanently in the country without leaving it for more than 6 months a year. Besides, it is obligatory to pass two exams:

• DELE to confirm A2 level in Spanish;

• CCSE to prove knowledge of Spanish culture and legal life.

Renouncing first citizenship. To become a Spanish citizen, investors have to give up their first passport. Only foreigners from France, Portugal, Andorra, the Philippines, Equatorial Guinea, and a number of Latin American countries are allowed to keep their citizenship after obtaining a Spanish one.

Investors over 18 with a legal income can qualify for a Spain residence permit. They must have health insurance, no criminal record, and no debt in Spain. All the investment money must be earned outside of Spain.

Spouses in an officially registered marriage or unregistered partnership can be included in the application. Same-sex couples are included.

Children of no age limit can receive residence permits in Spain too. Those over 18 must be unmarried, have no children, be financially dependent on the investor, or be in the investor’s custody due to mental or physical characteristics.

Parents of no age limit and financially dependent on any of the spouses are also eligible for the Spain Golden Visa.

Investors submit a package of documents alongside the Spain Golden Visa application. The essentials include the following:

1. A valid passport issued within the last ten years.

2. A certificate of no criminal record from the countries where the applicant has lived in the past five years.

3. Health insurance from a company licensed to work in Spain.

4. Proof of investment: for example, a certificate from the Land Registry.

5. Documents proving that the applicant has a sufficient income and a stable financial position.

6. Documents proving kinship and financial dependence of family members on the investor.

7. Filled-out government forms.

8. Passport-size photos.

Personal documents must be translated into Spanish by a translator licensed by the Ministry of Foreign Affairs. All copies must be notarized and apostilled. Additional documents might be required.

The initial duration of the Spain Golden Visa is 3 years. It is renewable for 5 years if the investment is maintained.

Investors can apply for permanent residency after 5 years of living in Spain. After this period, investors can apply for permanent residency in Spain. To obtain the status, foreigners must live in the country for at least six months a year, confirm their integration into the local economy and social life, pay taxes regularly, and have a good reputation.

1. The Spain Golden Visa is a program that allows non-EU investors to get a residence permit.

2. Investment options include buying real estate, opening a deposit, purchasing shares in Spanish companies, units in investment funds or government bonds, and business investment.

3. The minimum investment sum is €500,000.

4. Spanish citizenship can be granted after 10 years of residing in the country. However, it will require renouncing the original passport.

5. One of the advantages of the Spain Golden Visa is the possibility to include family members in the application, such as spouses, parents, and children.

6. Benefits of the Spain Golden Visa are creating a safe haven for the whole family; visa-free travel to the Schengen Area; no residency or language requirements; business and work opportunities; access to high quality education and healthcare; tax benefits; high quality of life; low cost of living; and a mild climate.

7. Disadvantages of the Spain Golden Visa include high expenses, investment risks, mandatory living in Spain for permanent residency, high waiting time for citizenship and renouncing the first passport, required clean criminal record, tax implications, high taxes, and political instability.