Spain offers two primary routes for non‑EU nationals to obtain long‑term status: citizenship by descent and the Golden Visa (residency by investment). Both pathways have distinct eligibility criteria, procedural steps, and long‑term implications for residency, taxation, and eventual citizenship.
Citizenship by descent
- Eligibility – Direct Spanish ancestry is required. Applicants whose parents are Spanish citizens qualify automatically. Recent changes also allow grandchildren and great‑grandchildren to apply, provided they meet specific conditions.
- Process –
- Document collection – Gather official records proving the familial link (birth, marriage, death certificates, etc.). This stage is often time‑consuming.
- Exams – Pass two mandatory tests:
- DELE A2 – Basic Spanish language proficiency.
- CCSE – Knowledge of Spanish society, culture, and the Constitution.
- Application – Pay the fee, submit the documents and exam certificates.
- Timeline – The route is not fast‑tracked; processing can take several years.
- Dual citizenship – Spain generally requires applicants to renounce their original nationality, as dual citizenship is not permitted except for citizens of certain Ibero‑American countries, the Philippines, Equatorial Guinea, Portugal, and individuals of Sephardic origin (who may apply after only two years of residence).
Golden Visa (residency by investment)
The Golden Visa grants residency to non‑EU investors and can serve as a pathway to permanent residency and citizenship.
Investment options
| Investment type | Minimum amount |
|---|---|
| Real‑estate purchase | €500,000 (subject to possible legislative changes) |
| Spanish public debt | €2 million |
| Bank deposit or share purchase | €1 million |
| New business creation (employment, innovation, socio‑economic impact) | No fixed amount, but must meet criteria |
- Funding – The core investment must be made with the applicant’s own funds; loans can be used only for amounts exceeding the minimum requirement. Joint investments are allowed, but each investor must satisfy the minimum threshold individually.
Visa and residency timeline
- Golden Visa – Valid for 1 year; must be exchanged for a residence permit in Spain before expiry.
- Residence permit – Valid for 2 years, renewable indefinitely as long as the investment is maintained.
- Permanent residency – Available after 5 years of continuous residence (minimum 6 months per year).
- Citizenship – After 10 years of residence (reduced to 2 years for nationals of Spanish‑American countries, the Philippines, Equatorial Guinea, Portugal, and Sephardic Jews) provided the applicant meets all legal requirements.
Family inclusion
- Spouse and children under 18 can be added as dependents.
- Minor children with health or mental conditions, and elderly parents who are financially dependent and co‑habiting, may also be included.
Additional requirements
- Clean criminal record; no prior visa refusals or Schengen entry bans.
- Health insurance coverage in Spain.
- Sufficient financial resources to support the applicant and dependents.
Tax considerations
- Acquisition taxes – Property purchases incur a transfer tax (≈ 1 % of the purchase price) and VAT where applicable.
- Residency tax – Residents (≥ 183 days per year) are taxed on worldwide income. Non‑residents are taxed at a flat 24.75 % on Spanish‑source income (e.g., rental income), with deductions for allowable expenses.
- Capital gains tax – Gains on property sales start at 24 % and rise to 27 % for profits exceeding €50 000.
- Annual property tax – Local authorities levy €200–€400 per year for an apartment.
Potential legislative changes
A bill under consideration in the Spanish Congress could terminate the real‑estate‑based Golden Visa, potentially making Spain the third country after Ireland and Portugal to end that specific route. Investors should monitor legislative developments, as alternative investment options (public debt, deposits, business creation) would remain viable.
Key takeaways
- Citizenship by descent is a lineage‑based, lengthy process requiring language and cultural exams, with limited dual‑citizenship allowances.
- The Golden Visa provides a faster residency route tied to substantial financial investment, with clear pathways to permanent residency and citizenship, but involves significant capital outlay and ongoing tax obligations.
- Prospective applicants should assess their eligibility, financial capacity, and long‑term residency goals, and stay informed about possible changes to Spain’s investment‑based immigration policies.
