7 reasons to choose Portugal instead of Spain for a residence permit

Why comparing Portugal and Spain matters in 2026

Both markets have increased in value, and both have tightened rules for foreigners. But they did it differently.

In 2024, Spain closed the Golden Visa for the purchase of real estate - the main tool for investors. Portugal retained the program but transferred it to investment funds. Spain requires 10 years of residence to obtain a passport. Portugal - 5 years, and in some cases even less.

If you're choosing between two countries, it's important to look not only at housing costs, but also taxes, naturalization rates, visa options, and strategic passport options. This is exactly what we discuss below.

Read more about the program in Guide to Portuguese Golden Visa.

Reason 1. NHR tax regime - 20% instead of standard 48%

Portugal offers Non-Habitual Resident (NHR) status. This is the official tax regime for new residents.

What it does: A flat 20% rate on income earned in Portugal in “skilled” occupations, and an exemption or reduced taxation on most foreign income. The regime is valid for 10 years without renewal.

In Spain there is an analogue - Beckham's law. He also reduces the rate to 24%. But it is only valid for 6 years, applies exclusively to earned income and requires the employer to be Spanish. It is practically unsuitable for investors, retirees and freelancers.

Since 2024, the NHR has been updated - the old version has been replaced by IFICI+ (for specialists in science, technology, investment). But the logic remains: Portugal purposefully attracts wealthy foreigners through tax incentives.

If you have dividends, rent, income from foreign business, Portugal is more profitable than Spain by default.

Reason 2. Golden Visa through a fund - Spain has closed this path

In April 2024, Spain completely closed the Golden Visa for the purchase of real estate. The program that provided residency to thousands of investors no longer exists.

Portugal took a different path. Real estate was also removed from the program in 2023, but in return there were investments in funds - from 500,000 €. These are regulated Portuguese investment funds with real assets.

What does this mean in practice: you invest in a fund, receive a residence permit, and after 5 years you can apply for citizenship. The fund, meanwhile, manages assets - real estate, venture capital or other classes.

Spain did not offer this option. You can now obtain an investor residence permit in Spain through the purchase of government bonds (from 2 million €), shares of Spanish companies (from 1 million €) or opening a business that creates jobs. The entry threshold is higher, there is less flexibility.

For those who want a residence permit by investment with the possibility of citizenship, Portugal remains a more accessible and transparent route.

Details and current funds are in the article "The Complete Guide to the Portuguese Golden Visa".

Reason 3. D7 visa - residence permit for passive income, which is not available in Spain

D7 is a Portuguese visa for people with passive or stable remote income. The minimum threshold is about 760 € per month per applicant. About 50% of this amount is added for the spouse, about 30% for each child.

Suitable for pensioners, rentiers, freelancers, foreign business owners. Physical presence in Portugal is required - at least 183 days a year or as the main place of residence.

Spain does not have a direct equivalent to D7. The closest option is the Non-Lucrative Visa (NLV), but it prohibits any work, including remote work. A freelancer or owner of a foreign company will not pass through NLV.

Portugal has also introduced the Digital Nomad Visa - an official status for remote workers with an income of 3,280 € per month (4 times the minimum salary). Spain launched a similar one in 2023, but it is less popular due to tax conditions.

D7 is especially in demand among citizens of Russia, Kazakhstan and Ukraine who receive income from abroad and want legal European status without large investments.

Read more in the material “Portuguese D7 visa: conditions and procedure for obtaining”.

Reason 4. Citizenship after 5 years - Spain takes twice as long

This is one of the most important arguments in favor of Portugal.

In Portugal, the minimum period of a residence permit before applying for citizenship is 5 years. Moreover, physical presence over these 5 years does not have to be permanent. Golden Visa holders only need to spend 7 days a year in the country - and the period is counted.

In Spain the standard period is 10 years of continuous residence. There are exceptions: for citizens of Latin America, the Philippines and a number of other countries, 2 years is enough. For marriage to a Spanish citizen - also 2 years. But for most investors from the CIS this is exactly 10 years.

The Portuguese passport is a full-fledged EU passport. Visa-free entry to 190+ countries, the right to live and work in any EU country, access to EU consulates around the world.

If the goal is a European passport and not just residency, then Portugal provides it faster and with fewer physical presence requirements.

Reason 5. Affordable real estate - Porto is one third cheaper than Barcelona

Spain and Portugal have been rising in price at the same time in recent years. But the gap remains.

The average price per square meter in Barcelona in 2025-2026 is about 4,500-5,000 € per sq.m in residential areas and up to 7,000-8,000 € in the center. Madrid is comparable or slightly lower.

In Lisbon - 4,000-5,500 € per sq.m. in central areas. In Porto - 2,500-3,500 €. In the regions - Alentejo, Algarve outside the tourist area - even lower.

For those who are moving with their family and want to buy a home rather than invest, this is a significant difference. For the same budget in Porto you will get a larger apartment in a good area.

Rent is also cheaper. A two-room apartment in Porto costs 900-1,200 € per month versus 1,500-2,000 € in Barcelona for a comparable option.

Important: purchasing real estate in Portugal no longer provides a Golden Visa. But as a way to allocate capital and provide yourself with housing, this is still one of the most popular steps after obtaining a residence permit.

Reason 6. Startup visa and less bureaucracy for business

Portugal has been actively building its reputation as a startup nation - it is no coincidence that Web Summit moved to Lisbon.

The Portuguese Startup Visa is designed for founders who want to grow a business in the country. Requirements: approved business plan, minimum capital and support from a certified incubator or accelerator. No income is required at the time of application - potential is assessed.

In Spain, a similar Entrepreneur Visa has existed since 2013 under the Entrepreneurs Law. But in practice, it is more difficult to formalize, requiring more documents and more formal justification. The process lasts for 6-12 months, and refusals are more common.

In addition to the startup visa, it is easier to register a company in Portugal - online through Empresa na Hora in one day. In Spain, registration takes several weeks even with a good consultant.

The language barrier is also lower: in Lisbon and Porto, English works well in a business environment. In Barcelona you have to navigate three languages ​​at once - Spanish, Catalan and English.

Reason 7. CPLP - Portuguese passport opens to Brazil, Angola and Mozambique

This is a strategic advantage that is rarely discussed in standard comparisons.

Portugal is a member of the Community of Portuguese-speaking Countries (CPLP). Membership provides simplified access to citizenship or residency in Brazil, Angola, Mozambique, Cape Verde, Sao Tome and Principe, Timor-Leste and Guinea-Bissau.

A specific example: a citizen of Portugal can obtain a Brazilian residence permit in a simplified manner - within the framework of an agreement on equal rights. This is especially important for those doing business in Latin America or Africa.

Spain also has special agreements with Latin American countries. But they work in the opposite direction - making it easier for Latinos to enter Spain, rather than for Spaniards to enter Latin America.

For investors with interests in Africa or Brazil, a Portuguese passport opens doors that a Spanish one does not. This is a long-term strategic consideration, but details like these are important when choosing a second home for decades to come.

Cost of residence permit in Portugal: full estimate

Payment for Golden Visa through the fund (one applicant and family of 4 people).

No investment is required for the D7 visa. Main expenses: consular fee about 90 €, notary and translations 500-1,000 €, agent 1,500-4,000 €. An affordable option for those who are not ready for large investments.

Detailed cost calculation is in the article “How much does a Portuguese Golden Visa cost?”.

How to check the readiness of documents before submitting

Portugal requires a clean biography: no criminal record, no sanctions, a valid passport. For Golden Visa, the source of funds is additionally verified through the fund.

What you need to prepare in advance:

• Certificate of no criminal record - from the country of citizenship and from the countries of residence for the last 5 years. Apostille is required.
• Confirmation of the source of income - tax returns, account statements, lease agreements or dividend certificates for 2-3 years.
• Confirmation of the purity of investment funds - bank statements with a history of accumulation, if necessary, explanatory letters.
• Health insurance - valid policy with coverage in Portugal.
• Proof of address in Portugal - rental agreement or letter from the owner.

A separate issue is tax status. If you plan to use NHR or IFICI+, the application must be submitted in the year you first received the residence permit. One year late means loss of benefits.

The Portuguese Immigration Service (AIMA, formerly SEF) operates by appointment. The wait for a spot can take 2-6 months in major cities. Plan ahead.

Portugal vs Spain: comparison table

Who is Portugal suitable for, and who is Spain?

Portugal is better suited if:

• You have foreign passive income and want to pay less taxes legally.
• You want a European passport and are not willing to wait 10 years.
• Budget for investment - 500,000-1,000,000 €, no more.
• You do not plan to live permanently, but to have European status.
• Are you interested in business ties with Brazil or Africa?

Spain could be better if:

• You want to live in Barcelona or Madrid - they have a more developed international environment.
• You speak Spanish or Spanish is important to your business.
• You are a citizen of Latin America - then the period for a Spanish passport is only 2 years.
• You are ready to invest from €2,000,000 in government bonds for a Spanish residence permit.

In most other cases, Portugal wins this comparison in terms of cost, taxes and speed of obtaining an EU passport.

Three common mistakes when choosing between countries

Mistake 1. Compare only the cost of housing. Many people look at the price per square meter and stop there. But the tax burden over 10 years may be more important than the difference in the price of the apartment. Calculate the full picture: rent or purchase plus taxes plus the cost of obtaining status.

Mistake 2: Not taking attendance requirements into account. A Spanish residence permit requires actual residence. If you plan to spend 3-4 months a year in Europe, your Spanish status will be difficult to maintain. The Portuguese Golden Visa is more flexible in this sense.

Mistake 3: Delaying filing for NHR. The preferential tax regime must be activated in the year of first obtaining a residence permit. Clients who move first and then deal with taxes lose 1-2 years of grace period. This is real money with an income of 100,000 € per year.

What does the process of obtaining a residence permit in Portugal look like?

For Golden Visa through the fund, the process looks like this:

1. Opening a bank account in Portugal. It takes 2-4 weeks if submitted remotely, faster if submitted in person.
2. Transfer of funds and purchase of fund units. The Fund issues confirmation of the investment.
3. Submitting an application to AIMA (Immigration Authority) through the online portal. The application is accompanied by a package of documents: passport, certificates of no criminal record, confirmation of investment, health insurance.
4. The wait for pre-approval is usually 2-4 months.
5. Personal visit to Portugal for biometrics. You must register in advance.
6. Obtaining a residence permit card. The first one is issued for 2 years, then an extension for 2 years, then for another 1 year.
7. After 5 years - apply for a permanent residence permit or citizenship.

For a D7 visa, the process begins at the consulate of your country of residence. First you need a long-term D7 visa, then you need to move and obtain a residence permit within the country.

Full information about the program is on the page “Portugal residence permit through investment”.

Bottom line: Portugal wins on five out of seven criteria

Portugal offers more flexible tools for obtaining a residence permit, a faster route to an EU passport, a preferential tax regime for 10 years and a more accessible real estate market.

Spain has other strengths: the largest economy of the two, a more developed business environment in Barcelona and Madrid, special agreements with Latin American countries.

If your goal is a European passport with minimal presence requirements, tax optimization for the first 10 years and an investment budget of up to 1 million €, then Portugal is a logical choice.

If you want to actively live in a large Spanish city and your horizon is 10+ years, Spain is also a workable option.

In any case, the choice should be made after a detailed calculation of the tax burden and verification of documents. The specific situation is always more important than general rules.