In the realm of European residency by investment programs, the Spanish Golden Visa and the Portuguese Golden Visa stand out as two of the most sought-after options for non-EU citizens aiming to gain a foothold in Europe. Both programs offer unique pathways to residency—and potentially citizenship—through investment, but they come with their own set of rules, benefits, and considerations. This article delves into the intricacies of both programs to aid potential applicants in making an informed decision.
Understanding the Basics
The Spanish Golden Visa and the Portuguese Golden Visa programs are designed to attract foreign investment by offering residency rights in Spain and Portugal, respectively. While both programs share the common goal of encouraging investment, they differ significantly in their requirements, benefits, and pathways to citizenship.
Key Differences in Investment Options and Requirements
One of the most critical aspects for potential applicants is the investment options and the minimum investment required. Spain’s program primarily focuses on real estate investments with a minimum threshold of €500,000, business development, or a capital transfer of €1 million. Conversely, Portugal has recently adjusted its program to exclude real estate purchases in high-density areas and real estate-related funds from qualifying investments, focusing instead on job creation, donations, business investments, and research.
Certainly, here’s the information with the rows reordered:
| Requirement | Spain | Portugal |
|---|---|---|
| Investment options | Real estate, business development, capital transfer | Job creation, donation, business, research |
| Investment amount | €500,000 – €2,000,000 (depending on the option) | €200,000 – €1,000,000 (depending on the option) |
| Age | 18 or older | 18 or older |
| Criminal record | Clean | Clean |
| Health insurance | Required | Required |
| Financial means | Sufficient to live on without working in Spain | Sufficient to support yourself and your family |
| Residency status | Legal | Legal |
| Illnesses | None according to a 2005 regulation | None |
| Application process | Online application, biometric data collection, approval, issuance, renewal | Online application, biometric data collection, approval, issuance, renewal |
| Citizenship eligibility | After 10 years of residency | After 5 years of residency |
Pathway to Citizenship: A Comparative Look
The pathway to citizenship is a crucial consideration for many investors. Portugal offers a relatively faster route, allowing investors to apply for citizenship after five years of residency without a stringent physical presence requirement—only seven days per year on average. Spain, on the other hand, requires a longer residency period of ten years before eligibility for citizenship application, with no minimum stay requirement for maintaining the residency status.
| Criteria | Spain | Portugal |
|---|---|---|
| Application processing time | 20 business days | 12 to 18 months |
| Timeline to citizenship | 10 years (See Fast-track option below) | 5 years |
| Physical stay requirements | 183 days per year | 7 days in the first year and also 14 days in the following two-year periods |
| Fast-track citizenship option (2 years of legal residence) | Yes, for nationals from former Spanish territories (Latin American countries, Portugal, Philippines & Andorra) | No |
Advantages at a Glance
Both programs offer the enticing prospect of visa-free travel within the Schengen Area, but there are nuances to consider. Portugal’s Golden Visa provides visa-free access to 188 countries, including EU and Schengen countries, while Spain’s program offers a similar benefit within the EU Schengen zone. Family inclusion, access to education, and retirement benefits are also key features of both programs, with each country presenting a slightly different package to appeal to potential investors.
| Advantage | Spain | Portugal |
|---|---|---|
| Family inclusion | Allows for the inclusion of family members within the program. | Permits simultaneous applications for the entire family. |
| Tax liability | Tax liability only applies if you exceed 183 days of stay in Spain. | Tax obligation arises if spending more than 183 days per year in Portugal. |
| Residency requirement | No specific residency duration required. | Requires an annual average of 7 days of residency. |
| Education | Offers a diverse range of educational institutions catering to international students. | Provides access to public services, including educational facilities. |
| Retirement | Presents a variety of pension options for selection. | Features a tax-friendly regime for individuals classified as non-habitual residents. |
| Visa-free travel | Allows visa-free travel within EU Schengen countries. | Grants visa-free access to 188 countries, including EU and Schengen nations. |
| Citizenship eligibility | Eligibility for citizenship after residing in the country for 10 years.(*Except Fast-track – see above) | Qualifies for citizenship after 5 years of residency. |
Investment, Fees, and Validity Periods
Investment types and amounts vary between the two programs, with Spain generally requiring higher investment thresholds. The application and renewal fees also differ, with Portugal’s fees being notably higher than Spain’s. Both programs offer initial residence permits valid for one year, with the possibility of renewal for two more years, leading to permanent residency and, eventually, citizenship.
Investment types
| Investment Type | Portugal | Spain |
|---|---|---|
| Fund Subscription | €500,000 | Not available |
| Donation | €250,000 or €500,000 | Not available |
| Real Estate | No longer available | €500,000 |
| Business Development | €500,000 + 5 jobs or €350,000 + 8 jobs | €1 million |
| Capital Transfer | No longer available | €1 million |
Golden Visa Fees
| Application Fees | Spain Golden Visa | Portugal Golden Visa |
|---|---|---|
| Initial application fee | €72.00 | €532.70 |
| Renewal fee | €18.82 | €532.70 |
| Issuance fee | €10.60 | €5,324.60 |
| Family member fee | €18.82 | €83.10 |
Validity Periods
| Validity Periods | Spain Golden Visa | Portugal Golden Visa |
|---|---|---|
| Initial residence permit | 1 year | 1 year |
| First renewal | 2 years | 2 years |
| Second renewal | 2 years | 2 years |
| Permanent residence | After 5 years | After 5 years |
| Citizenship | After 10 years (*Except Fast-track – see above) | After 5 years |
Making the Right Choice
Choosing between the Spanish Golden Visa and the Portuguese Golden Visa depends on the investor’s personal circumstances, goals, and preferences. Portugal’s program may appeal more to those seeking a faster route to citizenship and lower physical stay requirements, while Spain’s program might be more attractive for those interested in real estate investment or who prefer the Spanish lifestyle and culture.
Conclusion
In conclusion, both the Spanish Golden Visa and the Portuguese Golden Visa programs offer compelling benefits for non-EU investors seeking residency in Europe. The choice between Spain and Portugal will ultimately depend on the investor’s specific needs, investment capacity, and long-term residency or citizenship goals. By carefully considering the differences and similarities between the two programs, investors can make a decision that best aligns with their aspirations for living, working, and possibly becoming citizens of these vibrant European nations.
