10 January 2021 · Country Matchups · Global
Portugal vs Spain: Which Golden Visa Fits You Best?
Written by BorderPilot relocation analyst, updated with 2024 data.
Two neighbours, two coastlines, two globally coveted residency-by-investment schemes—yet decidedly different rulebooks, tax perks and lifestyle vibes. I spend my days modelling budgets for would-be expats, and the Portugal-versus-Spain debate fills my inbox more than any other. Rather than rely on folklore (“Portugal is cheaper!” “Spain has tapas!”), let’s weigh the numbers, the timelines and the lived experience so you can answer one question:
Which Golden Visa is the smart fit for you and your family in 2024?
1. Residency Pathways at a Glance
| Portugal Golden Visa (GV) | Spain Golden Visa (GV) | |
|---|---|---|
| Minimum stay requirement | 7 days first year; 14 days in subsequent 2-year periods | First entry within 12 months, then 1 day per year to renew (if you keep ties outside Spain) |
| Fast-track to permanent residency | 5 years (then citizenship possible at 5 yrs, so 10 total) | 5 years (citizenship after 10 years of residency) |
| Main qualifying investments (2024) | €500k+ in eligible VC/private-equity funds, €500k+ in scientific research, €500k+ in cultural heritage, €1.5 M capital transfer, 10 job creation | €500k+ real estate, €1 M shares, bank deposits or funds, €2 M sovereign bonds, “significant business project” |
| Family reunification | Spouse, minor children, dependent adult children, dependent parents of either spouse | Same scope; requires economic dependence proof |
| Processing time (real-world) | 8–12 months post-October 2023 reforms | 2–6 months; often under 90 days for initial visa |
| Major 2023-24 changes | Real-estate route closed; online portal backlog clearing | Political debate on removing real estate but still active as of Q2-2024 |
“The Iberian Peninsula offers two of Europe’s most flexible residency regimes—yet their legislative winds blow in opposite directions.”
—BorderPilot Policy Brief, February 2024
1.1 Portugal’s Post-Real-Estate Era
Portugal abruptly closed its famed property pathway in October 2023. Fund investment now dominates: over 70% of Q1-2024 applicants opted for regulated venture-capital or private-equity funds focused on Portuguese innovation, tourism or renewables.
Pros: - Diversified exposure (no burst pipes to fix). - Remote-friendly—no need to fly in to view bricks and mortar. Cons: - Fund fees (2–3% annually) erode returns. - Exit horizon mirrors fund life cycle (5–10 years).
1.2 Spain’s Still-Standing Property Route
Spain remains one of the few EU states where a €500k free-and-clear real-estate purchase buys a residency card. Madrid apartments, Barcelona co-working lofts, or that Costa del Sol villa—all eligible, provided the first half-million is mortgage-free.
Pros: - Tangible asset you can enjoy or rent. - Capital gains have historically outpaced Portuguese equivalents. Cons: - Ongoing speculation that the real-estate route may close; investors face “now or never” pressure. - Property taxes and maintenance higher than in Portugal.
If you’re leaning digital-nomad rather than investor, bookmark our updated Portugal Digital Nomad Visa Guide for a lighter-capital option.
2. Taxation: The Deciding Factor for Many
Residency rights mean little if annual tax bills swallow your returns. Below I model a hypothetical family of four with €250k passive income plus €50k capital gains.
| Portugal (Incentivised Tax Regime 2024) | Spain (Beckham Law 2023 revamp) | |
|---|---|---|
| Eligibility | New residents in “high value” jobs or research, 10-year window | New residents who haven’t lived in Spain in the last five years, up to 6-year window |
| Tax rate on employment income | 20% flat on Portuguese-sourced earnings up to €300k | 24% on first €600k, 47% thereafter |
| Foreign passive income | Exempt if taxed abroad; else progressive up to 48% | Taxed at 24% under Beckham; else progressive up to 47% |
| Capital gains on shares | 28% | 19–28% sliding scale |
| Wealth tax | None | National sliding scale 0.2–3.5% plus regional surcharges (Andalusia waived; Madrid 100% rebate) |
| Inheritance & gift tax | No federal tax for spouse/children | 1–34% national + regional deductions |
Reading Between the Schedules
Portugal’s famous Non-Habitual Resident (NHR) scheme ended for new entrants on 31 December 2023. Its replacement—let’s call it “NHR-Lite”—narrows eligibility to STEM, academia and R&D hires. Pure investors often don’t qualify, so those lured by the old 0% foreign dividend treatment must recalculate.
Spain, meanwhile, turbo-charged the Beckham Law last year: qualifying dependants now include children up to 25 and spouses earn the same favourable flat rate. For high-salary remote execs, Spain’s scheme may produce lower tax than Portugal’s new regime.
BorderPilot modelling shows that for incomes above €500k, Spain’s flat Beckham rate can shave €30k–€70k in annual tax versus Portugal’s progressive bands—provided you structure correctly.
Local Taxes & Hidden Line Items
-
Property taxes
• Portugal: 0.3–0.45% IMI annually, plus 0.7–1% “AIMI” for properties above €600k.
• Spain: 0.4–1.1% IBI, levied by municipalities. -
Health contributions
• Portugal: Access to SNS public system is free, but private insurance (€50–150/month) recommended.
• Spain: Non-resident property owners pay “imputed rent” tax; private insurance mandatory for initial visa (€60–200/month). -
Social security
• Neither Golden Visa forces you to pay until you take local employment contracts.
Bottom line: Tax residency is optional under both visas if you stay fewer than 183 days. However, your lifestyle might make that threshold unavoidable—so plan early with a professional.
3. Cost of Living: From Flat Whites to Footie Tickets
BorderPilot’s cost index (100 = Berlin baseline) shows:
| City | Housing (Rent) | Groceries | Eating Out | Childcare | Index |
|---|---|---|---|---|---|
| Lisbon | 85 | 80 | 70 | 60 | 79 |
| Porto | 70 | 75 | 65 | 55 | 71 |
| Madrid | 95 | 90 | 85 | 78 | 89 |
| Barcelona | 100 | 92 | 88 | 80 | 92 |
| Malaga | 75 | 78 | 70 | 65 | 77 |
Key takeaways:
- Portugal’s secondary cities (Braga, Faro) drop 15–25% below Lisbon.
- Spain’s non-capital metros (Valencia, Seville) rival Portugal on rent but still cost more in dining and utilities.
- Private international schooling: €6k–€11k per year in Portugal, €8k–€18k in Spain.
Coffee test:
Lisbon flat white: €2.50
Madrid cortado: €1.80
(But you’ll buy two in Madrid because they’re half the size.)
4. Lifestyle & Culture: Beyond the Spreadsheet
Iberian cultures look similar at 30,000 feet—Mediterranean diet, relaxed pace, beaches galore—but daily life diverges.
4.1 Language & Integration
Portugal:
• English widely spoken in tech hubs and the Algarve.
• Portuguese takes patience; nasal vowels deter casual learners but locals appreciate any effort.
Spain:
• Spanish essential outside expat enclaves.
• Add regional layers (Catalan, Galician, Basque).
My anecdote: After six months in Porto, the fishmonger taught me to pronounce carapau. In Madrid, I needed conversational Spanish inside three weeks just to open a bank account.
4.2 Healthcare
Both countries rank top-15 globally, yet subtle differences matter:
- Portugal’s SNS faces longer queues for non-urgent specialists; private clinics abundant and cheap.
- Spain’s Sistema Nacional de Salud enjoys broader coverage; expats rave about maternity care.
4.3 Day-to-Day Tempo
Portugal:
• Earlier dining (20:00 is late).
• Bureaucracy improved via online portals but SEF restructuring still in flux.
• Surf culture; work-life balance strong.
Spain:
• Late everything—lunch at 14:30, dinner 21:30+.
• Paper-heavy admin yet reliable once you know the game.
• Football/national fiestas punctuate the calendar (prepare for city-wide shutdowns).
4.4 Safety & Community
Both countries score high on the Global Peace Index (Portugal #7, Spain #29, 2023). Petty theft common in tourist centres; violent crime rare.
Expat groups:
- Portugal’s digital-nomad Slack channels active 24/7 (Lisbon Cowork, Madeira Slack).
- Spain hosts large international chambers (American, British) offering business networking.
5. Best Golden Visa by Expat Profile
Nobody likes the answer “it depends,” so let’s segment:
5.1 Yield-Focused Investor
Risk appetite: moderate
Capital: €500k–€2 M
Time in country: Minimal
Pick Portugal if you prefer regulated funds with professional management and a 7-day stay rule. Robust exit strategies and lower ancillary taxes sweeten net IRR.
5.2 Real-Estate Lover Wanting a Holiday Home
Risk appetite: hands-on
Capital: €500k+
Time in country: Seasonal stays
Pick Spain while property route remains. You’ll hold a tangible asset you can Airbnb (subject to local licences) and perhaps capture price appreciation ahead of the 2030 World Cup uplift.
5.3 Remote Executive on High Salary
Salary: €300k+
Company: foreign employer
Tax planning: key concern
Pick Spain under Beckham Law. The 24% flat rate up to €600k wins, plus no wealth tax in Madrid.
5.4 STEM Professional or Academic
Job offer: Portuguese R&D lab or university
Long-term vision: citizenship
Pick Portugal and use the new incentive regime. Combine the Golden Visa (or even D3 talent visa) with tax benefits and path to EU passport in as little as five years’ residency.
5.5 Early Retiree on Pensions & Dividends
Income: €100k passive
Lifestyle: coastal, mild winters
Crunch both scenarios. Portugal’s pension tax may rise to 15% without NHR—Spain’s progressive 19–26% rates can sting. But Andalusia’s wealth tax rebate plus cheaper flights might tip the scales.
6. Scenario Modelling: Two Case Studies
Case 1: The Crypto Founder
- Exit proceeds: €3 M
- Wants: low days in-country, EU option
- Risk profile: comfortable with VC funds
Portugal fund route wins. Capital gains on fund shares taxed at 28%, but if non-resident (<183 days) he pays in his home jurisdiction. Minimal stay plus clear exit at fund maturity clinches it.
Case 2: The Corporate Lawyer
- Salary: €450k remote from U.S. firm
- Spouse + 2 teenagers
- Prefers urban lifestyle
Spain with Beckham: 24% on entire salary, family included, international schools in Madrid, direct flights to U.S. Renew card every two years with one foot in Spain; pathway to permanent residence after five.
7. What Could Go Wrong?
- Policy shifts: Portugal axed real estate overnight; Spain may follow suit.
- Processing backlog: SEF migration to AIMA caused 9-month delays.
- Currency risk: Dollar-euro swings affect real estate valuations.
- Fund underperformance: VC investments can lose capital.
- Tax residency creep: 183-day rule plus “centre of vital interests” tests.
Mitigation: keep meticulous travel logs, engage tax counsel early, and follow our Ultimate International Moving Checklist for paperwork sanity.
8. The Decision Matrix
Below is a simplified scorecard (1-5 scale) based on 2024 metrics:
| Factor | Portugal GV | Spain GV |
|---|---|---|
| Entry investment flexibility | 3 | 5 |
| Min. physical presence | 5 | 4 |
| Tax perks for high earners | 3 | 4 |
| Tax perks for passive income | 4 | 3 |
| Cost of living | 4 | 3 |
| Speed of processing | 2 | 4 |
| Long-term policy stability | 3 | 2 |
| Family friendliness (schools, health) | 4 | 4 |
| Ease of language | 4 | 3 |
| Citizenship timeline | 4 | 3 |
| Total | 36 / 50 | 35 / 50 |
Statistically a draw—but your priorities may load certain columns more heavily.
9. Key Takeaways
- Portugal’s Golden Visa pivoted from bricks to brains—funds, science, culture. Lower presence requirement remains a huge perk.
- Spain’s property route is intact (for now), processing is faster and Beckham tax tweaks reward high-salary employees.
- Cost of living tilts Portugal; big-city convenience often favours Spain.
- Both offer Schengen mobility and eventual EU passports; neither replaces tailored tax advice.
“If the numbers tie, visit both countries in mid-winter. The place where you notice fewer drafty hallways is the one worth calling home.”
Ready to Model Your Own Outcome?
BorderPilot’s algorithm crunches investment, tax and lifestyle inputs to recommend your ideal visa pathway—without guesswork. Create your free relocation plan today and turn Iberian daydreams into data-backed decisions.