Golden visa Spain vs Portugal Which one is the best?

Spain after 10 years and Portugal after 5 years and it is easier than in Spain.

In Spain, the Golden Visa program does not automatically grant Spanish citizenship unless you are a national from one of Spain’s former colonies in Central and South America, the Caribbean or the Philippines. These nationals can gain citizenship within two years, provided they meet other requirements.  

Particularly for Americans, as well as nationals of other countries, they must first live as temporary residents in Spain, for 183 days per year and apply to become permanent residents after five years. After another 5 years of permanent residency, they can apply for citizenship – 10 years in all. 

In Portugal, acquiring permanent residency and citizenship is easier and faster. Investors can apply for permanent residency after five years, without living in Portugal. They become eligible for citizenship after the fifth year. 

Portugal has more competitive investment options and is generally a little less costly than Spain.

Portugal has 3 options.  

1. The lowest cost is a EUR 250,000 donation to the arts.  
2. An investment of at least EUR 500,000 into a Portuguese Investment or Venture Capital fund with certain government requirements.  
3. Purchasing real estate 
   1. Any property in a designated area (Not Lisbon, Porto or the coast) for EUR 500,000 or in a low density area for EUR 400,000.
   2. A property in a designated area that is at least 30 years old for renovation, with a minimum value of EUR 350,000 or 280,000 in a low density area 

First Spain has only two options 

1. A minimum of 1 million Euros deposited into an accredited Spanish bank
2. A minimum real estate investment of EUR 500,000 in real estate or real estate shares – for the purchase of 1 or multiple properties and a mix of residential or commercial real estate. 

Both countries have relatively dynamic and robust real estate markets, and it is worth noting that these are investment programs. It is reasonable to expect that investors can recoup their funds after 5 years with a likely profit, except for the Portugal Arts donation option, and there may be interim dividends available.

Portugal’s Golden Visa program offers more – the Non-Habitual Residence (NHR) Portugal Tax Regime, which allows tax exemptions for up to ten years. These exemptions are extensive and include income obtained from pensions, dependent and independent work, real estate income, capital gains, and intellectual or industrial property. Portugal’s property transfer tax is also highly beneficial.

Spain’s Golden Visa real estate investment has a significant factor to consider, which is the taxation system. Investors who reside in Spain for more than 183 days per year are subject to tax on their worldwide income, which is not the case in Portugal. For non-resident individuals, the country charges a 24% tax on income derived in Spain, such as rental income.

Both countries include spouses, dependent children under 18 dependent parents. All eligible for residency. Portugal offers marginally broader family eligibility, for example, including dependent children over 18 who are still in school.

In summary, for Americans or most other nationalities, there are very solid benefits to both Golden Visa programs. Many experts consider Portugal’s Golden Visa to be slightly more advantageous, but it’s important to note that both Portugal’s and Spain’s golden visa real estate investment pros and cons exist. It’s important to consider both options and choose the one that best aligns with your priorities. 

As noted earlier there have been some reports of Portugal terminating their Golden visa program.  In this event we would recommend you consider some of the other similar European programs, such as those of Malta, Cyprus, Greece, France and Monaco.