Spain has been on the radar of investors seeking "residency by investment" for many years due to its quality of life, strong infrastructure, and mobility offered within the Schengen area. The biggest reason for this interest was the flexibility provided by the Spain Golden Visa (Residence by Investment) program, which started in 2013 and will close on April 4, 2025. Although the program has ended, many of the advantages discussed when it comes to "citizenship by investment in Spain" still remain relevant from the perspective of investment-based residency strategies, tax planning, and the residency path to citizenship.
In this article, I will step by step address what advantages residency sourced from investment in Spain (through the historical Golden Visa framework) offers to investors, what realistic timelines those aiming for citizenship should consider, and which alternatives stand out in the post-2025 period.
Let's clarify first: Does Spain grant "direct citizenship by investment"?
The term "citizenship by investment" is often misunderstood in practice. Spain does not have a system that grants citizenship directly through investment. Investment can at most open the door to residency; citizenship usually comes into play after long-term residency and the completion of certain conditions.
The logic was the same during the Golden Visa period: a temporary residency is obtained with a suitable investment, and if conditions are met, permanent residency in 5 years, followed by citizenship in 10 years is targeted. For some nationalities (e.g., from Latin American countries, Portugal, the Philippines), the path to citizenship could be shortened to 2 years; however, this rule does not apply to everyone and requires a detailed eligibility analysis.
The main needs of investors: EU access + flexibility + family security
For high-income individuals and families, the plan to reside in an EU country like Spain generally rests on three main goals:
- Strengthening Schengen mobility and business/life connections with Europe
- Flexible residency model: Maintaining status without the obligation to live in the country for long periods each year
- Securing the family together: The ability for spouses and children to obtain residency under the same application
The Golden Visa was popular precisely because it met these needs. Even though it closed in 2025, investors are still evaluating alternative types of residency in Spain with similar goals.
The most important advantages of the Golden Visa (2013–2025) from an investor's perspective
1) Coverage of the family in a single application
One of the strongest aspects of the program was family inclusivity. The residency permit could be extended to:
- spouse (and in some cases same-sex partner and officially recognized partner),
- unmarried children,
- dependent parents
This structure reduces the stress of “I’ll go first, then I’ll do family reunification”; it helps to plan education, health, and mobility for the entire family at once.
2) Low residency requirement (flexibility)
The "most critical" advantage of the Golden Visa from the investor's perspective was the approach of no minimum residency requirement when renewing the residency permit. This means that a person could maintain their status by completing certain procedural steps, even if they did not live full-time in Spain (for example, if they continued their work in another country). However, in practice, entry/exit planning to Spain would still be necessary for biometric, renewal, and documentation processes.
This flexibility was valuable for second home investors, international businesspeople, and families wanting to keep the “EU option” open.
3) Strong mobility in the Schengen area
The residency obtained in Spain through the Golden Visa provided a significant advantage in terms of visa-free short-term travel within the Schengen area. Additionally, offering a framework based on the right to live, work, and study in Spain was meaningful for investors planning careers and education linked to the EU.
4) Permanent residency in 5 years, citizenship target in 10 years
The program offered a gradual path instead of unrealistic promises like “today residency, tomorrow EU passport”:
- Permanent residency: Generally, after 5 years (for permanent status, criteria such as annual actual residency expectations and absence limits usually come into play).
- Citizenship: As a general rule, application can be made after 10 years of residency. For some nationalities, this period can be reduced to 2 years.
At the citizenship stage, requirements such as language/integration exams usually come into play. Therefore, investors need to plan the process with two separate sets of goals: “residency” and “citizenship.”
5) Low language/experience barrier
During the Golden Visa phase, since barriers such as diploma, previous entrepreneurial history, or Spanish language proficiency were not required, the process progressed more on the axis of “investment and eligibility.” This provided speed and predictability, especially for investors with a busy work schedule.
6) Tax planning perspective: “Tax residency” is a critical distinction
Obtaining residency in Spain does not automatically mean becoming a tax resident. In practice, the key threshold in most scenarios is whether one stays in Spain for more than 183 days a year. Non-tax residents generally only face taxation on Spain-sourced income.
Additionally, some general frameworks that stand out in research data are:
- Corporate tax: Incentives such as lower corporate tax rates for newly established companies (e.g., for the first 2 years) may be applicable compared to standard rates.
- Real estate and income taxes: Separate tax assessments are required depending on the type of investment (rental income, capital gains, etc.).
Important note: Tax planning varies according to the individual's country of citizenship, current tax residency, double taxation treaties, and types of income. Therefore, instead of a “one-sentence tax optimization” approach, a personalized analysis with international accounting and tax expertise is necessary.
7) Quick results and predictability in process management
The Golden Visa period was known as a system where applications could relatively quickly yield results. Additionally, the renewal of residency at specific intervals (provided the investment is maintained) could be managed with a regular “compliance calendar.” For investors, this meant a reduction in uncertainty.
What were the investment options for the Golden Visa? (Historical framework)
During the program period, the most popular route was at least €500,000 real estate investment. Alternatively:
- €1,000,000 bank deposit, shares, or investment fund,
- €2,000,000 government bonds
The applicant was also expected to show conditions such as being over 18 years old, a clean criminal record, health insurance, proof of legal income outside Spain, and financial sufficiency. While the amounts for financial sufficiency may vary by year, for example, in 2024, it was discussed that the applicant would need to prove a specific amount (e.g., €28,800) and additional amounts for family members (e.g., €7,000 per person).
Disadvantages and limits: It was not the “perfect solution” for every investor
While the Spain Golden Visa offers strong advantages, some realities must also be clearly seen:
- High investment threshold: Especially the €500,000 real estate threshold created an entry barrier for many investors.
- Actual residency for permanent residency: Even with a flexible renewal logic, actual residency, absence periods, and integration requirements become important for permanent residency and citizenship goals.
- Citizenship timeline: The general rule of 10 years and exam/integration obligations makes the goal “long-term.”
- Closure after 2025: The closure of the real estate option fundamentally changed the investment strategy.
What alternative paths stand out for investors in Spain after 2025?
The closure of the Golden Visa directed investors wanting to move to Spain or create a “Plan B” in Europe towards alternative residency categories. The highlighted topics in research data are:
Non-Lucrative (Non-Work Granting) Residency
Generally evaluated for profiles that can prove passive income (such as retirees, those with rental/dividend income). Since work rights are limited, it may not always be suitable for those planning to start a business/work actively.
Entrepreneur/Startup Visa
Criteria such as innovative business plans, added value, and scalability come into play. When correctly structured for investors with a strong intention to start a business, it can be an effective route. On the tax side, regimes like the “Beckham Law” may come into play in some cases; however, eligibility and application strategy definitely require professional analysis.
Highly Qualified Professional Residency
This category progresses based on a qualified job offer from Spain and can have speed advantages in family reunification. It stands out more for profiles seeking “career mobility” rather than investors.
Strategic residency by establishing a company (job creation/economic contribution)
Establishing a company in Spain (e.g., SL structure) and residency scenarios through economic activity is a more “active” model than the Golden Visa. However, when planned correctly, both operational expansion and long-term residency goals can be pursued together.
Cost and planning: It’s not just about the investment amount, there are also “compliance costs”
The cost for investors aiming for residency and long-term citizenship in Spain is not just about the investment amount. Generally, the following items are considered together:
- Legal processes and application management (documents, translation, apostille, appointments, biometrics)
- Tax residency and declaration planning (management of double taxation risks)
- Real estate/portfolio structure (rental, income tax, documentation of expenses)
- Family coverage (document set and compliance calendar for each individual)
- Company establishment and accounting (corporate structure, payroll, annual reporting)
How does Corpenza add value in this journey?
Although the Golden Visa is now closed specifically for Spain, the need of investors has not disappeared: Selecting the right residency category in the EU, establishing sustainable corporate structures, and managing tax/accounting compliance correctly are still critical.
Corpenza approaches the process not just as an “application for residency” but as a comprehensive settlement and operational establishment project with a focus on international business development and mobility. Depending on the need:
- Company establishment and structuring (establishing operations in Europe, suitable country/structure analysis)
- International accounting and tax compliance (residency planning, reporting logic, risk reduction)
- Payroll / EOR (recruitment and payroll management in the new market)
- Efficiency in cross-border assignments with personnel leasing/posted worker model
aims to ensure that your investment and mobility decisions do not remain “on paper” but transform into a sustainable order in real life.
Conclusion: A correct strategy is essential in the equation of “investment + residency + citizenship” in Spain
The closure of the Spain Golden Visa has changed the rules of the game; however, when it comes to the advantages of “citizenship by investment in Spain,” what investors are actually looking for remains the same: Schengen access, family security, flexible living arrangements, and the option of citizenship in the long term.
Today, achieving these goals in Spain requires more planning and the correct choice of category compared to the Golden Visa period. Therefore, addressing the process with the dimensions of investment, residency, tax residency, and operational establishment significantly reduces costs and risks.
Disclaimer
This content is for general informational purposes; it does not constitute legal, tax, or financial advice. Legislation and practices may vary by country, the applicant's situation, and current regulations. We recommend checking current official sources and seeking support from professionals in the field before making an application or investment decision.
